2017 (11) TMI 1716 - Tri - Insolvency and Bankruptcy

Corporate insolvency process - outstanding debt - Held that - The present petition has been filed in the form and manner prescribed under the Code. It is annexed with the copies of the invoices and delivery receipts. Due notice u/ s 8 of the Code was sent by the Director of the Operational Creditor authorised to initiate the present proceeding vide a Board Resolution. The notice, which was annexed with the required invoices and other document, remained unreplied. The petitioner has maintained a ledger account reflecting the statement of debit and credit in respect of their dealings with the Corporate Debtor. The Bankers of the Operational Creditor viz. Standard Chartered, vide their letter dated 23.10.2017 have certified that the amount of ₹ 8,58,426.87 in the account of the Operational Creditor has not been received from the Corporate Debtor. Despite service on the Corporate Debtor vide different modes, none has appeared on behalf of the respondents to offer any resistance. From the facts of the case, this Bench is satisfied that the Operational Creditor is entitled to initiate the Insolvency Resolution Process against the Corporate Debtor for non payment of its dues. This petition u/ s 9 of the Code is therefore Admitted. A moratorium in terms of section 14 of the Code is being issue

Summary

Issues:
Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 by a private limited company claiming to be an Operational Creditor against a Corporate Debtor for outstanding invoices.

Analysis:
The petitioner, a private limited company, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming to be an Operational Creditor. The company provided logistics services to the Corporate Debtor and raised invoices for services rendered between May 2016 and July 2016, totaling &8377; 8,58,426.87. Despite repeated demands, the Corporate Debtor failed to settle the outstanding amount.

The petition was filed in the prescribed manner under the Code, accompanied by copies of invoices and delivery receipts. The Director of the Operational Creditor, authorized by a Board Resolution, sent a notice under Section 8 of the Code, which remained unanswered. The petitioner maintained a ledger reflecting the debit and credit transactions with the Corporate Debtor.

The Operational Creditor's bankers certified that the amount due from the Corporate Debtor had not been received. The Operational Creditor complied with the mandatory requirements of Section 9(3)(a), (b), and (c), stating that the Corporate Debtor did not dispute the unpaid debt and had no grievances with the services provided.

Despite various attempts to serve the Corporate Debtor, no response was received. The Tribunal found the Operational Creditor entitled to initiate the Insolvency Resolution Process due to non-payment by the Corporate Debtor. The petition under Section 9 of the Code was admitted, and a moratorium under Section 14 of the Code was imposed, prohibiting specific actions against the Corporate Debtor.

The Tribunal directed the continuation of essential supplies to the Corporate Debtor during the moratorium period and specified exceptions to the moratorium as notified by the Central Government in consultation with financial regulators. An Insolvency Professional was proposed, and upon fulfilling the criteria, the petition was admitted, and the moratorium came into effect.

The Interim Resolution Professional was instructed to proceed with necessary actions as per relevant sections and submit a report within the statutory period. The case was scheduled for the IRP's report on a specified date, and both parties were to be informed of the order.