2017 (7) TMI 1149 - Tri - Insolvency and Bankruptcy

Corporate insolvency process - Held that - None represented on behalf of the Corporate Debtor, which shows the Respondent is not interested to file a counter to the petition. By invoking the powers under Sections 10,12,13,14,15,16, 17, 18, 19, 20, 21, 22 and 25 and other applicable provisions of the Insolvency and Bankruptcy Code, 2016 application admitted - Moratorium declared.

Summary

Issues: Insolvency and Bankruptcy proceedings, Appointment of Interim Resolution Professional, Declaration of Moratorium, Constitution of Committee of Creditors, Cooperation of Corporate Debtor

In the judgment delivered by the National Company Law Tribunal, Hyderabad, the case involved insolvency and bankruptcy proceedings under various sections of the Insolvency and Bankruptcy Code, 2016. The Applicant's Counsel informed the Tribunal about the admission of the case and the lack of representation from the Respondent, indicating their disinterest in filing a counter to the petition. In response, the Tribunal invoked its powers under several sections of the Code to pass orders.

The Tribunal declared a moratorium, prohibiting actions such as instituting or continuing suits against the Corporate Debtor, transferring or disposing of assets, enforcing security interests, recovering property, or interrupting essential services during the moratorium period. Additionally, an Interim Resolution Professional was appointed in accordance with Section 16 of the IBC, 2016. The Tribunal directed the public announcement of the initiation of Corporate Insolvency Resolution Process and the submission of claims. The Interim Resolution Professional was tasked with constituting a Committee of Creditors and holding their first meeting within seven days of its formation, as per the relevant sections of the IBC.

Furthermore, the Tribunal ordered the personnel associated with the management of the Corporate Debtor to cooperate with the Interim Resolution Professional, providing access to documents and records. The Interim Resolution Professional was instructed to adhere strictly to the provisions of the IBC and report actions promptly to the Tribunal. The case was scheduled for a post on 21.08.2017, ensuring the proceedings continued in a timely manner as per the directives of the Tribunal.