The National Company Law Tribunal (NCLT) on Tuesday granted TVS Automobile Solutions Pvt. Ltd.’s appeal to collect dues of 5.27 crore from Salem-based KPN Travels, a well-known travels operator in Tamil Nadu, for delivery of various items between August 2017 and December 2019. The application requested that the Corporate Insolvency Resolution Process (CIRP) be started against KPN, a moratorium be declared, and an Interim Resolution Professional be appointed.
According to the ruling signed by the Bench comprising R. Sucharitha, Member (Judicial), and B. Anil Kumar, Member (Technical), the application is accepted under Section 9(5) of the IBC, 2016, and the moratorium will begin on the same day. TVS Automobile is involved in the provision of automobile components, sales and distribution, and after-sales services for automobiles, heavy commercial vehicles, light commercial vehicles, and other vehicles, according to the order. KPN has made multiple orders with TVS Automobile for filters, brakes, linings, clutch plates, gearbox components, tyres and tubes, lubricants, and grease.
KPN failed to pay for the service, and the travel operator's statement of finances shows that it owed TVS Automobile an overdue sum of 3.94 crore. The payment, which is due for the period from 31 August 2017, to 31 December 2019, was estimated to be 3.94 crore, with an annual interest rate of 18%. As a result, KPN owed a total of 5.27 crore, according to the application. KPN, on the other hand, claimed that TVS Automobile had not proved the debt or default on KPN's side and that there was a prior disagreement. KPN further claimed that the Demand Notice was not properly served and that it was missing invoices. As a result, it was argued that the necessary condition under Section 8 of the IBC, 2016 had not been met and that the application should be rejected on that basis.
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