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2019 (11) TMI 1570 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - the whole argument and the plea of the Corporate Debtor was demolished by the letter dated 12th March, 2018 having been admittedly written by the Corporate Debtor to the Operational Creditor which superseded all the correspondences between the parties - HELD THAT - It is clear that the Corporate Debtor has acknowledged, admitted and confirmed its outstanding liability of ₹ 1,05,17,735/- towards the Operational Creditor as on 12th March, 2018. Moreover, this letter has been written by the Corporate Debtor to the Operational Creditor during the pendency of this application - it can safely be deduced that there is an admitted outstanding debt of ₹ 1,05,17,735 payable by the Corporate Debtor to the Operational Creditor which was to be paid by the end of 31st August, 2019 in instalments as per its own acknowledgement which the Corporate Debtor has failed to discharge. This Adjudicating Authority is therefore of the view that Corporate Insolvency Resolution Process has to be initiated against the Corporate Debtor - Application admitted - moratorium declared.
Issues:
Initiation of Corporate Insolvency Resolution Process under section 9 of the Insolvency & Bankruptcy Code, 2016. Detailed Analysis: 1. Application for Insolvency Process: - M/s. Saint Gobain India Private Limited, the Operational Creditor, filed an application seeking initiation of Corporate Insolvency Resolution Process against M/s. Glaze Infrastructure Private Limited, the Corporate Debtor, under section 9 of the Insolvency & Bankruptcy Code, 2016. - The Operational Creditor supplied goods to the Corporate Debtor based on purchase orders and terms agreed upon, leading to an unpaid operational debt of &8377; 1,91,52,681. - A demand notice was issued by the Operational Creditor, and the Corporate Debtor acknowledged the debt but failed to clear it. 2. Dispute and Admissions: - The Corporate Debtor attempted to raise disputes regarding C Forms provision, breakages, and wastage compensation to contest the debt. However, the Corporate Debtor's own admission in a letter dated 12th March, 2018, confirmed an outstanding balance of &8377; 1,05,17,735. - The Corporate Debtor's acknowledgment of the debt during the pendency of the application solidified the claim against it. 3. Judicial Decision: - After hearing both parties, the Tribunal found the existence of an admitted outstanding debt of &8377; 1,05,17,735, which the Corporate Debtor failed to discharge as per its own acknowledgment. - Consequently, the Tribunal admitted the application for initiating Corporate Insolvency Resolution Process against the Corporate Debtor. 4. Orders and Moratorium: - The Tribunal declared a moratorium, initiated a public announcement, and appointed an Interim Resolution Professional (IRP) to oversee the process. - Essential provisions of the Insolvency & Bankruptcy Code, 2016, including restrictions on suits, asset transfers, and property recovery, were imposed during the moratorium period. - The IRP was directed to convene a meeting of the Committee of Creditors, identify a Resolution Applicant, and manage preliminary expenses for the insolvency process. 5. Further Directions: - The Operational Creditor was instructed to deposit funds for initial expenses, and the Registry was tasked with communicating the order to all relevant parties. - A progress report deadline was set, and the issuance of certified copies of the order was contingent on compliance with formalities. 6. Conclusion: - The judgment comprehensively addressed the issues raised by both parties, upheld the claim of the Operational Creditor, and initiated the necessary insolvency proceedings against the Corporate Debtor in accordance with the Insolvency & Bankruptcy Code, 2016.
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