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2019 (12) TMI 1395 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditor or not - existence of debt and dispute or not - HELD THAT - It is found that the applicant had issued reminders calling upon the respondent to make payment of the outstanding. It appears that having failed to get any reply from the respondent, the applicant was compelled to issue demand notice under section 8 of I B Code on 27.03.2019. Record also shows that the respondent has not raised any reply/dispute against the demand notice so issued by the applicant. Record also shows that pursuant to order dated 16.07.2019, the petitioner had made paper publication in Financial Express on 05.10.2019. This adjudicating authority is of the considered view that operational debt is due to the Applicant and it fulfilled the requirement of IB Code. That, Applicant is an Operational Creditor within the meaning of Section 5 sub-section 20 of the Code. From the aforesaid material on record, petitioner is able to establish that there exists debt as well as occurrence of default and the amount claimed by operational creditor is payable in law by the corporate debtor as the same is not barred by any law of limitation and/or any other law for the time being in force. It is a fit case to initiate Insolvency Resolution Process by admitting the Application under Section 9(5)(1) of the Code - Petition admitted - moratorium declared.
Issues:
1. Application under Section 9 of The Insolvency and Bankruptcy Code, 2016. 2. Operational debt due to the applicant. 3. Compliance with statutory requirements under the Code. 4. Appointment of Interim Resolution Professional. 5. Declaration of moratorium and its implications. Issue 1: Application under Section 9 of The Insolvency and Bankruptcy Code, 2016: The petitioner, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against the respondent, a corporate debtor, for non-payment of dues amounting to ?7,25,707. The petitioner fulfilled the necessary requirements under the Code, including issuing demand notices and providing documentary evidence to support the claim. Issue 2: Operational debt due to the applicant: The Tribunal found that the operational debt was due to the applicant, as established by the petitioner through the submission of relevant documents and evidence. The respondent failed to respond or dispute the claim, leading to the conclusion that the debt was valid and payable by the corporate debtor. Issue 3: Compliance with statutory requirements under the Code: The Tribunal referred to the Supreme Court judgment in Mobilox Innovative Private Limited vs. Kirusa Software Private Limited, outlining the conditions to be met for admitting an application under Section 9 of the Code. It was determined that the operational creditor met all necessary conditions, and the debt was not barred by any law of limitation or other legal restrictions. Issue 4: Appointment of Interim Resolution Professional: In accordance with Section 13 of the Code, the Tribunal directed the appointment of an Interim Resolution Professional to initiate the corporate insolvency resolution process. CA Kedar Ramratan Laddha was appointed as the interim resolution professional to oversee the proceedings. Issue 5: Declaration of moratorium and its implications: The Tribunal declared a moratorium to prohibit certain actions against the corporate debtor, including the institution of suits, transfer of assets, and recovery of property. The moratorium was to remain in effect until the completion of the corporate insolvency resolution process or until further orders were passed. In conclusion, the Tribunal admitted the petition, declared a moratorium, appointed an Interim Resolution Professional, and directed communication of the order to relevant parties. The Registry was instructed to inform the Registrar of Companies about the corporate insolvency resolution process to prevent any actions that could hinder the resolution proceedings.
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