2019 (1) TMI 1833 - 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 - There is no dispute in the case that the petitioner is the financial creditor. More so when the corporate debtor has admitted the debt by way of an affidavit in reply. The application is also filed in the prescribed form - I of the Rules and the prescribed fee has also been paid - On perusal of record, it is held that there is existence of default and the said default accrued on 20.05.2018. The application under Section 7(2) of the Code is also complete in all respect. The petitioner/financial creditor having fulfilled all the requirements of Section 7 of the Code, the instant petition deserves to be admitted - Petition admitted - moratorium declared.

Summary

Issues:
- Application under section 7 of The Insolvency and Bankruptcy Code, 2016 seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code.
- Unpaid loan amount by the corporate debtor.
- Admission of debt by the corporate debtor.
- Completeness of the application under Section 7(2) of the Code.
- Decision on admission of the petition and declaration of moratorium.

Analysis:
- The petitioner, M/S. Pani Logistics, filed a petition under section 7 of The Insolvency and Bankruptcy Code, 2016 seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code. The petitioner, a proprietary firm, had granted an unsecured loan to the respondent, M/S. Ganga Advisory Private Limited, which remained unpaid. The outstanding amount was detailed in the application, and the respondent admitted to the debt in an affidavit.

- The petitioner provided evidence of the debt, including bank statements, ledgers, and communication with the proposed Interim Resolution Professional. The application was filed correctly in the prescribed form, and the proposed Resolution Professional was identified. The existence of default was confirmed, and the application was deemed complete under Section 7(2) of the Code.

- The Tribunal found that the petitioner met all the requirements of Section 7 of the Code, and therefore, the petition was admitted. A moratorium was declared to prohibit various actions against the corporate debtor, including suits, asset transfers, enforcement of security interests, and recovery of property. The order specified that essential services to the Corporate Debtor should not be terminated during the moratorium period.

- The moratorium was to remain in effect until the completion of the corporate insolvency resolution process or until the approval of a resolution plan or liquidation order. The petition was disposed of with no costs awarded, and the order was communicated to all relevant parties, including the Applicant, Financial Creditor, Corporate Debtor, and the Interim Insolvency Resolution Professional.