2020 (1) TMI 1420 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Petition filed by Operational Creditor - existence of debt and dispute or not - HELD THAT - Operational creditor filed Form-5 and furnished the information with regard to the operational debt which is committed default by corporate debtor - The notice was served on the corporate debtor. Postal track record is filed through Memo. PCS contended that corporate debtor has not replied or failed to defend. The claim is within limitation. There is no representation or reply by the Corporate Debtor. was served with notice before admission. However, corporate debtor remained absent and it did not contest the claim. The operational creditor has been able to establish un disputed operational debt against corporate debtor and the corporate debtor has been in default with regard to the payment of dues to the operational creditor amounting to ₹ 2,30,62,247.90/ The Operational creditor is able to establish through documents that corporate debtor committed default of operational debt and there is no pre-existing dispute. Thus, this Petition is complete and is liable to be admitted. Petition admitted - moratorium declared.

Summary

Issues:
Petition filed under Section 9 of Insolvency and Bankruptcy Code, 2016 for default in payment by Corporate Debtor.

Analysis:
1. Background and Petition Details:
The Petition was filed by an Operational Creditor against a Corporate Debtor for defaulting on a payment of ?2,30,62,247.90. The Operational Creditor provided goods and services based on a Master Services Agreement. The Corporate Debtor allegedly delayed signing agreements and issuing work orders, leading to disputes regarding completion and payment for the work done.

2. Operational Debt and Default:
The Tribunal found that the Operational Creditor established an undisputed operational debt against the Corporate Debtor. Despite being served notice, the Corporate Debtor did not contest the claim. The claim was within the limitation period, and the Corporate Debtor failed to defend against the allegations of default.

3. Admission of Petition:
As a result of the uncontested debt and default, the Tribunal admitted the Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Tribunal declared a moratorium, prohibiting legal actions against the Corporate Debtor, and appointed an Interim Resolution Professional to oversee the Corporate Insolvency Resolution Process.

4. Directions and Orders:
The Tribunal issued directions for the moratorium period, ensuring the supply of essential goods and services to the Corporate Debtor is not interrupted. The moratorium was to be in effect until the completion of the resolution process or liquidation. Additionally, a public announcement of the initiation of the resolution process was mandated.

5. Conclusion:
The Petition was admitted, and the Tribunal took necessary steps to protect the interests of the Operational Creditor and oversee the resolution process for the Corporate Debtor. The judgment aimed to ensure fair proceedings and adherence to the Insolvency and Bankruptcy Code provisions.