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2020 (1) TMI 1439 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - default regarding interest and applicable taxes towards the Annual Listing Fees - application filed by BSE Limited (Operational Creditor) - existence of debt and dispute or not - HELD THAT - Since the application filed by the Applicant fulfilled all the conditions required under Section 9 of the Code, this Tribunal ordered issue of notice to the Respondent by all modes. However, the Applicant during the hearing on 24.09.2019 has contended that the affidavit of service has been filed and also e-service has been made, No one has represented on behalf of the Respondent. However, despite service of notice by all modes, none appeared on behalf of the Respondent and as a result the Respondent was proceeded ex-parte on 24.09.2019 - The Respondent was absent even on the hearing on 17.12.2019 and was set ex-parte. The Applicant has established the existence of debt and default on the part of the Respondent and the Respondent has not availed the opportunities provided by this Tribunal to defend the arguments made by the Applicant. In view of the above situation, this Tribunal admits this petition and initiates CIRP on the Respondent with immediate effect. Application admitted - moratorium declared.
Issues: Application for Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016
Detailed Analysis: 1. Alleged Default on Annual Listing Fees Payment: The Applicant, a recognized stock exchange, filed an application to initiate the Corporate Insolvency Resolution Process against the Respondent, M/s. MFS Intercorp Limited, for defaulting on the payment of Annual Listing Fees (ALF) amounting to ?8,27,559/-, including interest and applicable taxes. The Applicant detailed the transactions leading to the application, highlighting the listing agreements executed between the parties, the obligations of the Respondent to pay ALF as per the agreements, and the default in payment by the Respondent. 2. Operational Debt and Default: The Applicant claimed that the operational debt of ?8,27,559/- accrued on 01.04.2015 and continued to accrue until the date of the demand notice. Despite the Respondent making payments for ALF until the financial year 2014-2015, the Applicant alleged that the Respondent failed to pay any further amounts, leading to the default. The Applicant issued a demand notice under section 8(1) of the Insolvency and Bankruptcy Code, 2016, which was returned as undelivered, indicating the Respondent's non-compliance. 3. Procedural Compliance and Ex-Parte Proceedings: The Tribunal noted that the Applicant fulfilled all conditions under Section 9 of the Code, leading to the issuance of notices to the Respondent through various modes. However, despite multiple attempts at service, the Respondent did not appear during the hearings. The Tribunal proceeded ex-parte against the Respondent on 24.09.2019 and subsequently admitted the petition for initiating the Corporate Insolvency Resolution Process due to the established debt and default by the Respondent. 4. Initiation of Corporate Insolvency Resolution Process: With the Respondent being absent during hearings and failing to defend against the Applicant's claims, the Tribunal admitted the petition and initiated the Corporate Insolvency Resolution Process against the Respondent with immediate effect. A moratorium was imposed under Section 14 of the Code, restricting various actions against the Respondent's assets and legal proceedings, ensuring the protection of the corporate debtor during the resolution process. 5. Appointment of Interim Resolution Professional: The Tribunal confirmed the appointment of Ms. Dipti Mehta as the Interim Resolution Professional proposed by the Applicant. Ms. Mehta was tasked with taking necessary steps as per the provisions of the Code, including filing a report within 30 days before the Tribunal. The appointment aimed to facilitate the resolution process and manage the affairs of the corporate debtor during the insolvency proceedings.
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