2019 (11) TMI 1528 - 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 Debt is admitted by the respondent and also has expressed inability to repay. In view of the same this application is ADMITTED.

Issues Involved:
1. Jurisdiction and Admissibility of the Application
2. Debt and Default Admission
3. Initiation of Corporate Insolvency Resolution Process (CIRP)
4. Moratorium and its Implications
5. Appointment of Interim Resolution Professional (IRP)
6. Directions to Operational Creditor and Ex-Management

Issue-wise Detailed Analysis:

1. Jurisdiction and Admissibility of the Application:
The application was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) read with Rule 6 of the IBC (Application to Adjudicating Authority) Rules, 2016. The petitioner, M/s. Robo Silicon Private Limited, sought the initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Supreme Concrete & Infrastructure Private Limited. Initially filed before the NCLT Kolkata Bench, the matter was transferred to the Cuttack Bench. The registered office of the Respondent/Corporate Debtor is within Odisha, thus conferring jurisdiction to the Cuttack Bench. The transactions in question occurred between February 2018 and June 2019, making the claim within the period of limitation.

2. Debt and Default Admission:
The application was for the recovery of a debt amounting to ?27,95,297/-, comprising ?26,54,747/- as the principal amount due as of 30.06.2018 and ?1,40,550/- as interest at 18% per annum for overdue invoices up to 14.09.2018. The Respondent/Corporate Debtor admitted the debt, citing business slowdowns in infrastructure and real estate as reasons for their inability to settle dues. The applicant provided detailed invoices and part payment records, with the last part payment made on 06.04.2018. The balance confirmation dated 30.07.2018 by the Respondent corroborated the outstanding amount.

3. Initiation of Corporate Insolvency Resolution Process (CIRP):
The application was admitted under Sections 8 and 9 of the IBC, 2016, for initiating the CIRP against the Respondent/Corporate Debtor. The tribunal examined the application, replies, documents, and affidavits, noting the admitted debt and the Respondent's inability to repay. Consequently, the application was admitted, and the CIRP was initiated.

4. Moratorium and its Implications:
A Moratorium Order was passed as per Section 13 of the IBC, 2016, prohibiting:
a) Institution or continuation of suits or proceedings against the Corporate Debtor.
b) Transfer, encumbrance, alienation, or disposal of the Corporate Debtor's assets.
c) Actions to foreclose, recover, or enforce any security interest created by the Corporate Debtor.
d) Recovery of any property by an owner or lessor in possession of the Corporate Debtor.
The supply of essential goods or services to the Corporate Debtor was to remain uninterrupted during the moratorium period. The moratorium would last until the completion of the CIRP, ceasing upon approval of a resolution plan or liquidation order.

5. Appointment of Interim Resolution Professional (IRP):
Mr. Debadatta Mohapatra was appointed as the Interim Resolution Professional (IRP) to ascertain creditors' particulars and convene a Committee of Creditors meeting for evolving a resolution plan. The Operational Creditor was directed to deposit ?1,00,000 with the IRP to cover expenses, subject to adjustment by the Committee of Creditors.

6. Directions to Operational Creditor and Ex-Management:
The ex-management was directed to provide all documents and information to the IRP within one week from the petition's admission, with coercive steps to follow for non-compliance. The IRP was to convene a Committee of Creditors meeting and submit the resolution passed. The registry was instructed to communicate the order to the Operational Creditor, Corporate Debtor, and IRP via Speed Post and E-mail. The IRP was to file the 1st Progress Report on 19.12.2019, with the matter listed for the same date.

In conclusion, the application was admitted, initiating the CIRP against the Corporate Debtor, with a moratorium in place and an IRP appointed to manage the process.

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