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Informist, Friday, Dec. 27, 2024

 

NEW DELHI – The Delhi bench of the National Company Law Tribunal has admitted a petition to start insolvency proceedings against Hero Electric Vehicles Pvt. Ltd. for an unpaid amount of INR 18.53 million. The tribunal appointed Bhoopesh Gupta as the interim resolution professional of Hero Electric to carry out functions as per the Insolvency and Bankruptcy Code, 2016.

 

"In the facts and circumstances of the instant case, we are of the view that the corporate debtor has not been able to raise a plausible contention regarding the pre-existence of dispute between the parties. Hence, the present petition filed under Section 9 of the IBC, 2016 ought to be admitted," said a bench of technical member Atul Chaturvedi and judicial member Bachu Balaram Das.

 

The tribunal also declared a moratorium against Hero Electric in terms of Section 14 of the 2016 code. The provisions of moratorium will not apply to transactions that might be notified by the Centre or the supply of the essential goods or services to the corporate debtor as may be specified, are not to be terminated or suspended or interrupted during the moratorium period, the tribunal said.

 

Metro Tyres is engaged in the business of manufacturing rubber products. Hero Electric had approached Metro Tyres for the purchase of cycle tyres and tubes on the basis of the reputation of the latter. Thereafter, Metro Tyres supplied goods to Hero Electric and in lieu of this, various invoices were raised by the former from Aug. 9, 2022 to Dec. 3, 2022, amounting to a sum of INR 36.95 million. 

 

Hero Electric had paid INR 42.77 million to Metro Tyres. However, there was an outstanding amount of INR 18.53 million to be paid by Hero Electric, against which Metro Tyres moved the tribunal. 

 

On Dec. 20, the Delhi High Court cleared the way for a probe by the Serious Fraud Investigation Office on Hero Electric Vehicles Pvt. Ltd. in a case related to alleged misappropriation of the Faster Adoption and Manufacturing of Electric Vehicles, or FAME-II scheme subsidies by the company.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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