2019 (12) TMI 1392 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT - The applicant has attached the copy of Bank statements issued by M/s. Punjab National Bank, in compliance with the requirement of Section 9(3)(C) of the IBC 2016 - The registered office of respondent is situated in New Delhi and therefore this Tribunal has jurisdiction to entertain and try this application. On perusal of the record it is clear that the default has occurred on 25.07.2016 when the last invoice fell due. Hence, the claim is not time barred and the present application is well within the limitation period. The present application is complete and the Applicant is entitled to claim its dues, establishing the default in payment of the operational debt beyond doubt, more so when the debt has remained undisputed in spite of service of section 8 notice and the present application. Requirements under section 9(5) of the Code are fulfilled. Hence, the present application is admitted. Application admitted - moratorium declared.

Summary

Issues:
Application under Section 9 of Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process initiation against Respondent.

Analysis:
1. The Applicant, an Operational Creditor, filed an application under Section 9 of the IBC, 2016 against the Respondent, seeking to initiate the Corporate Insolvency Resolution Process due to non-payment of dues.
2. The Operational Creditor, M/s. Jajoo Exim Private Limited, supplied quartz powder to the Respondent, M/s. Parth Concast Limited, with outstanding dues of ?4,04,540/- as of 25.07.2016, which the Respondent failed to pay within the stipulated time.
3. The Operational Creditor issued a demand notice under Section 8 of the IBC, 2016 to the Respondent, who replied denying the debt due to alleged inferior quality of supplied materials causing financial losses.
4. The Operational Creditor refuted the Respondent's claims, asserting the quality of supplied quartz powder was as per requirements, and the Respondent had not raised any quality issues earlier.
5. The Tribunal noted the absence of a pre-existing dispute and admitted the application under Section 9, finding the Operational Creditor entitled to claim its dues with no merit in the Respondent's defense.
6. The Tribunal appointed an Interim Resolution Professional, Mr. Sourabh Malpani, directing the Operational Creditor to deposit funds for the IRP's expenses and imposed a moratorium on the Respondent as per IBC provisions.
7. The Registry was instructed to notify all relevant parties about the order, including updating the status of the Corporate Debtor on the Registrar of Companies' website within a specified timeframe.