2017 (6) TMI 1307 - Tri - Insolvency and Bankruptcy

Maintainability of petition - initiation of CIRP - Corporate Debtor - existence of default in repayment of amount - HELD THAT - The petitioner as operational creditor and the respondent is corporate debtor. The material on record further clearly show that the amount covered by invoice is due to the operational creditors. 1st invoice is dated 15.03.2014 and the last is dated 19.05.2016. As can be seen from the confirmation of accounts from 01.04.2016 to 31.03.2017 an amount of ₹ 41,84,270/- is outstanding against respondent. Petitioner stated that no notice of dispute has been given by respondent. From the aforesaid material on record it can be said that the debt is due to the operational creditors from the corporate debtor and corporate debtors made default in making repayment of the said debt - Petitioner stated the name of the insolvency professional and filed his written communication. Petitioner also issued demand notice as required by section 8(1), read with Rule 5, of the Rules and served the same on the respondent. There is an occurrence of default in repayment to the operational creditor by corporate debtor and the corporate debtor made default in making repayment of the said debt. Application admitted - moratorium declared - Interim Resolution Professional appointed.

Summary

Issues Involved:
Petition under section 9 of The Insolvency and Bankruptcy Code, 2016 seeking reliefs, non-payment of goods supplied by the petitioner to the corporate debtors, issuance of demand notice, appointment of interim insolvency resolution professional, declaration of moratorium, and related orders.

Detailed Analysis:

Issue 1: Petition under Insolvency and Bankruptcy Code
The petitioner filed a petition under section 9 of The Insolvency and Bankruptcy Code, 2016 seeking reliefs under the Code for non-payment of goods supplied to the corporate debtors. The petition was filed along with the necessary documents, including invoices, demand notice, and proof of service.

Issue 2: Non-Payment of Goods
The petitioner supplied goods worth Rs. 41,84,270/- to the corporate debtors as per invoices. The corporate debtors were required to pay the amount within a specified time frame, failing which interest at the rate of 30% per annum was applicable. Despite the demand notice and communication, the amount remained unpaid.

Issue 3: Appointment of Interim Insolvency Resolution Professional
The Tribunal appointed an interim insolvency resolution professional based on the petitioner's proposal. The appointed professional met the necessary requirements and filed the required forms and certificates. The Tribunal directed the operational creditor to make a public announcement as per the Code.

Issue 4: Declaration of Moratorium
Following the admission of the petition and the appointment of the Interim Resolution Professional, the Tribunal declared a moratorium under Section 13(l)(a) of the Code. The moratorium prohibited various actions against the corporate debtor, including suits, asset transfers, enforcement of security interests, and property recovery. However, the supply of goods and essential services to the corporate debtor was allowed to continue during the moratorium period.

Conclusion
The Tribunal's order declared the moratorium, appointed the interim insolvency resolution professional, and directed the parties to comply with the provisions of the Code. The moratorium would remain in force until the completion of the Corporate Insolvency Resolution Process, subject to the provisions of Section 14(4) of the Code. The communication of the order was to be sent to all relevant parties and the appointed professional.