2017 (3) TMI 1815 - Tri - Companies Law

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and dispute or not - HELD THAT - This Bench is of the view the corporate debtor has complied with provision Of Section 10 of the Code and convince us for declaring moratorium with consequential directions - petition is admitted for declaring moratorium.

Summary

Issues:
- Application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 by Corporate Applicant/Debtor
- Admission of the petition for declaring Moratorium with Consequential Directions

Analysis:
1. Application under Section 10 of the Insolvency and Bankruptcy Code, 2016:
The case involved an application filed on behalf of the Corporate Applicant/Debtor under Section 10 of the Insolvency and Bankruptcy Code, 2016. The definition of Corporate Applicant includes the Corporate Debtor, and the application sought relief to initiate the corporate insolvency resolution process. The application was admitted as the Corporate Debtor had complied with the provisions of Section 10 of the Code. The Bench was convinced to declare a moratorium with consequential directions, and the petition was admitted for the same.

2. Admission of the petition for declaring Moratorium with Consequential Directions:
The order pronounced by the Tribunal included various directions and prohibitions. The moratorium under Section 14 was to have effect from a specified date until the completion of the corporate insolvency resolution process or until the Bench approved the resolution plan or passed an order for liquidation. The order also prohibited the institution of suits or continuation of proceedings against the Corporate Debtor, transferring or disposing of assets, enforcing security interests, or recovering property. Additionally, the supply of essential goods or services to the Corporate Debtor was not to be terminated during the moratorium period. The Bench appointed an Interim Resolution Professional and directed the public announcement of the corporate insolvency resolution process. The order was to be issued to the parties involved, including the Interim Resolution Professional, after completing necessary formalities. Ultimately, the application was allowed, and the matter was disposed of accordingly.

This detailed analysis of the judgment highlights the key issues addressed by the Tribunal, including the application under Section 10 of the Insolvency and Bankruptcy Code and the admission of the petition for declaring a moratorium with consequential directions. The judgment provides a comprehensive overview of the legal proceedings and the actions taken by the Tribunal in response to the application filed by the Corporate Applicant/Debtor.