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2017 (6) TMI 1171 - Tri - Insolvency and BankruptcyCorporate insolvency resolution process - Held that - After having been satisfied that all the requirements under law have been fulfilled, we hereby allow the application of the operational creditor and order the commencement of the corporate insolvency resolution process which ordinarily shall get completed within 180 days, reckoning from the day this order is passed. We appoint Mr.V.Mahesh, as interim insolvency professional who has been proposed by the operational creditor. He is directed to take charge of the corporate debtor immediately. He is also directed to cause public announcement as prescribed under Section 15 of the Code within three days from the date the copy of this order is received, and call for submissions of claim under section 15 of IBC 2016 in the manner as prescribed. It is stated here that no disciplinary proceeding is pending against the Interim Insolvency Professional and his name is reflected on the website of the Insolvency and Bankruptcy Board of India. We declare the moratorium which shall have effect from the date of this order till the completion of corporate insolvency resolution process, for the purposes referred to in Section 14 of the IBC 2016.
Issues: Application under section 9 of IBC, 2016 for default in payment; Existence of dispute; Appointment of interim insolvency professional; Declaration of moratorium.
Analysis: 1. The Tribunal examined an application filed under section 9 of the Insolvency and Bankruptcy Code, 2016, regarding a default in payment by the corporate debtor. The statutory notice dated 27.02.2017 highlighted the default, and although the respondent raised some issues in their reply, they did not constitute a valid dispute as per the agreement between the parties. The operational creditor submitted an affidavit along with a bank statement. Despite the respondent's failure to receive the petition due to an endorsement issue, the Tribunal found all legal requirements fulfilled and allowed the application for the commencement of the corporate insolvency resolution process within 180 days. 2. The Tribunal appointed Mr. V. Mahesh as the interim insolvency professional, directing him to take immediate charge of the corporate debtor. Mr. Mahesh was also tasked with making a public announcement as per Section 15 of the Code within three days of receiving the order copy, inviting submissions of claims under Section 15 of IBC 2016. The Tribunal declared a moratorium effective from the order date until the completion of the corporate insolvency resolution process, prohibiting various actions against the corporate debtor, including institution of suits, asset transfers, enforcement of security interests, and property recovery. 3. The Registry was instructed to inform the Insolvency Resolution Professional to assume control of the entity and comply with the order as per the provisions of IBC, 2016. Subsequently, the Tribunal admitted the application and directed the Registry to communicate the order to both the operational creditor and the corporate debtor.
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