2019 (8) TMI 1456 - Tri - Insolvency and Bankruptcy

Maintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of outstanding debt - existence of debt and dispute - HELD THAT - The amount of more than ₹ 50 Lakhs is owed by the corporate debtor to the operational creditor and despite the demand notice under issued under Section-8 the amount has remained unpaid. It is also evident that neither any reply was filed to the notice under section-8 of the IBC nor reply to the instant petition has been furnished despite repeated opportunities granted. The amount has become due and payable. The default stands established and the petition warrants admission. Petition admitted - moratorium declared.

Summary

Issues:
1. Petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by an operational creditor against a corporate debtor.
2. Default amount claimed by the operational creditor.
3. Details of the debt, invoices, and demand notice served.
4. Respondent's appearance and failure to file a reply.
5. Admission of the petition and appointment of an Interim Resolution Professional.
6. Declaration of moratorium and directions for public announcement.
7. Deposit by the operational creditor and provision of documents by ex-management.

Analysis:
1. The judgment deals with a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by an operational creditor against a corporate debtor, seeking to trigger the Corporate Insolvency Resolution Process. The operational creditor provided security services to the corporate debtor under a contract, claiming a default amount of ?50,35,741 as of a specified date.

2. The petition included details of the debt, invoices, and a demand notice served under Section 8 of the Code. Despite the demand notice, the amount remained unpaid, and the respondent failed to file a reply to the notice or the petition, establishing the default and warranting admission of the petition.

3. Upon the respondent's appearance and failure to file a reply, the tribunal admitted the petition and initiated the Corporate Insolvency Resolution Process. An Interim Resolution Professional was appointed based on the list provided by the Insolvency and Bankruptcy Board of India. Moratorium was declared under Section 14 of the Code, with exceptions for certain transactions and essential supplies.

4. The Interim Resolution Professional was directed to make a public announcement regarding the admission of the application, and the operational creditor was instructed to deposit a sum of ?1 Lac with the IRP for expenses. The ex-management of the corporate debtor was directed to provide documents and information to the IRP within a specified period.

5. Additionally, the judgment addressed concerns regarding the amount claimed by financial creditors, emphasizing the need for fairness in resolving any discrepancies. The office was directed to communicate the order to relevant parties promptly, including the operational creditor, corporate debtor, and the Interim Resolution Professional.

This detailed analysis covers the key issues and decisions outlined in the judgment, providing a comprehensive understanding of the legal proceedings and outcomes in the case.