A Single Bench of National Company Law Tribunal (NCLT), Chennai has recently delivered an order favouring T4 Texultants Pvt. Ltd., invoking section 9 of the insolvency and bankruptcy code 2016 (read with Rule 6) against textile machinery and accessories maker Pinter FA.NI Asia Pvt Ltd.
In a case dating back to its moorings in 2013, when T4 Texultants was appointed as Sales Agent by Pinter FA.NI Asia for their yarn spinning spindle monitoring systems for North India, which later extended to South India as well. T4 Texultants performed extremely well with the products and established the technology in India. They also positioned the products as number one selling brand in the country. However, in June 2014, Pinter FA.NI Asia decided to part ways and served a notice to terminate the agency agreement with T4 Texultants in three months.
Later in June 2015, T4 Texultants claimed their commission from Pinter FA.NI Asia out of the sales generated by them during the contractual period. However, the latter denied their claim which resulted in T4 Texultants approaching the NCLT. After vetting the facts, NCLT designated T4 Texultants as the operational creditor and Pinter FA.NI Asia as corporate debtor and placed the litigation to a single member bench of Ch. Mohd Sharief Tariq. T4 Texultants in their application claimed an amount of Rs. 1.84 crores as principal amount plus an interest of 21% per annum till December end 2017.
In the legal imbroglio that followed, the counsel for Pinter FA.NI Asia was found by the Bench to be contradicting his own documents and performing U-turn on his own contentions. The bench concluded that the submissions made by T4 Texultants are plausible while the defence raised by Corporate Debtor is spurious, misleading and same stands rejected. T4 Texultants has fulfilled all the requirements of law for admission of their application and the authority is satisfied that Pinter FA.NI Asia has committed default in making payment of the outstanding debt claimed by T4 Texultants. Therefore, the Bench ordered the commencement of the Corporate Insolvency Resolution Process which shall get completed in 180 days, by 23rd October 2019.
The Bench further gave direction to appoint Gopalsamy Ganesh Babu as Interim Resolution Professional (IRP) who has been a member in the panel of insolvency professionals and to take control of Pinter FA.NI Asia’s management immediately. The details of the NCLT judgement can be viewed at their website link : https://nclt.gov.in/sites/default/files/final-orders-pdf/Pinter%20FA.Niasia%20Pvt%20ltd.pdf