2019 (11) TMI 1457 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - time limitation - HELD THAT - The transactions were of the year from 01.07.2016 to 30.04.2019. The application has been filed on 21.06.2019. Hence, the claim is well within the period of limitation - The Registered Office of the Corporate Debtor is within the state of Odisha; hence, this Adjudicating Authority has jurisdiction. The applicant/petitioner states that since the respondent company failed in making payment of the outstanding to the tune of ₹ 1,45,99,236/- to the applicant/petitioner, the applicant/petitioner sent the Statutory Demand Notice dated 21.05.2019 under Section 8 in Form 3 under Insolvency and Bankruptcy Code, 2016 to the respondent company, to which no reply was received. Therefore, without finding any other alternative remedy the applicant approached this Adjudicating Authority. The application filed by the Operational Creditor under Section 8 and 9 of the Insolvency Bankruptcy Code, 2016 is hereby admitted for initiating the Corporate Insolvency Resolution Process against M/S Gurusukh Vintrade Services Pvt. Ltd. Moratorium Order is passed for a public announcement as stated in Sec. 13 of the IBC, 2016 - Application admitted - moratorium declared.

Summary

Issues Involved:
- Application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016
- Jurisdiction of the Adjudicating Authority
- Default in payment by the Corporate Debtor
- Appointment of Interim Resolution Professional
- Moratorium Order and its implications

Analysis:

1. Application under Section 9 of the Insolvency & Bankruptcy Code, 2016:
The petition was filed by M/S Apeejay Surrendra Park Hotels Limited, an Operational Creditor, against M/S Gurusukh Vintrade Services Pvt. Ltd., the Corporate Debtor, under Section 9 of the IBC. The Operational Creditor claimed that the Corporate Debtor owed an amount of Rs. 1,45,99,236 for management and marketing fees. The petition was admitted by the Adjudicating Authority, initiating the Corporate Insolvency Resolution Process against the Corporate Debtor.

2. Jurisdiction of the Adjudicating Authority:
Given that the Registered Office of the Corporate Debtor was within the state of Odisha, the Adjudicating Authority in Cuttack had jurisdiction over the matter. The Authority proceeded ex parte as the respondent failed to appear despite notice by way of publication.

3. Default in Payment by the Corporate Debtor:
The Operational Creditor detailed the defaults and delays in payment by the Corporate Debtor, sending various reminders and a legal notice for repayment. As the Corporate Debtor failed to settle the dues, the Operational Creditor sent a Statutory Demand Notice under Section 8 of the IBC, which also went unanswered, leading to the filing of the petition.

4. Appointment of Interim Resolution Professional:
In the absence of a proposed Insolvency Resolution Professional (IRP) by the Operational Creditor, the Adjudicating Authority appointed Mr. Umesh Chandra Sahoo as the IRP. The IRP was tasked with ascertaining the particulars of creditors and convening a meeting of the Committee of Creditors for evolving a resolution plan.

5. Moratorium Order and its Implications:
Upon admitting the petition, the Adjudicating Authority declared a moratorium under Section 14 of the IBC. This moratorium prohibited various actions against the Corporate Debtor, including the institution of suits, transferring assets, enforcing security interests, and recovering property. Essential goods or services to the Corporate Debtor were to continue during this period. The moratorium was to remain in effect until the completion of the Corporate Insolvency Resolution Process.

This detailed analysis covers the key aspects of the judgment delivered by the National Company Law Tribunal, Cuttack, regarding the application under the Insolvency & Bankruptcy Code, 2016.