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2019 (10) TMI 1364 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make payment of principal and interest aggregating to ₹ 20,61,793 as on 01.09.2017 which is the date of default - existence of debt and dispute or not - HELD THAT - It is observed that the Demand Notice dated 13th April, 2018 was served on the Corporate Debtor and the same was delivered by speed post to the Corporate Debtor. The acknowledgement for the delivery has been submitted by the Operational Creditor - The Corporate Debtor has made part payment of ₹ 10,00,000/-, and the remaining principal amount of ₹ 14,78,496/- along with interest of ₹ 5,83,297/- totalling to ₹ 20,61,793/-. Thus, debt on the Corporate Debtor is proved by the Operational Creditor. The application made by the Operational Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is in excess of minimum amount of one lakh rupees stipulated under section 4(1) of the IBC. Therefore, the default stands established and there is no reason to deny the admission of the Petition. In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor. Application admitted - moratorium declared.
Issues:
Company petition under section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) for initiation of Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor. Analysis: 1. Jurisdiction: The Corporate Debtor is a private company incorporated under the Companies Act, 1956, in Maharashtra, Mumbai. The Bench has jurisdiction to deal with the petition. 2. Default: The Operational Creditor filed the petition due to the Corporate Debtor's failure to pay a principal amount of ?14,78,496 and interest of ?5,83,297, totaling ?20,61,793 as of the default date. 3. Operational Creditor's Case: The Operational Creditor provided goods to the Corporate Debtor under five invoices totaling ?24,78,496. The Corporate Debtor agreed to pay within 10 days or incur interest at 24% p.a. A partial payment of ?10,00,000 was made, leaving a principal amount of ?14,78,496 due along with interest. 4. Demand Notice: A Demand Notice was served on the Corporate Debtor in April 2018, but no reply was received. 5. Admission of Petition: The Bench found the application complete and established the debt owed by the Corporate Debtor. The default was proven, meeting the requirements of the IBC for admission of the petition. 6. Order: The Bench admitted the petition, initiating the CIRP against the Corporate Debtor. An Interim Resolution Professional (IRP) was appointed, and a moratorium under section 14 of the IBC was declared, affecting various actions related to the Corporate Debtor's assets and legal proceedings. 7. Moratorium: The moratorium shall be in effect until the completion of the CIRP, approval of a resolution plan, or liquidation of the Corporate Debtor. Essential supplies to the Corporate Debtor shall continue during this period. 8. Management during CIRP: The management of the Corporate Debtor shall vest in the IRP/RP, and officers/managers must provide necessary documents and information to the IRP. 9. Expenses and Communication: The Operational Creditor must deposit a sum for expenses, and the Registry is directed to communicate the order to relevant parties promptly. 10. Compliance: The Registrar of Companies, Maharashtra, Mumbai, must update the Corporate Debtor's Master Data, and a compliance report is required within seven days.
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