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2019 (8) TMI 1729 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors failed to make repayment of its dues - time limitation - HELD THAT - The Respondent has filed a reply stating that it is admitting the claim of ₹ 1,91,47,151/- made by the petitioner in its petition (Form-1) filed under Section 7 of IBC, 2016. The respondent further admits that the due to some Financial Crises, it was heavily indebted and it was hardly possible to afford and keep up with the financial obligations. In view of admission and the commitment made in the reply, the Corporate Insolvency Resolution Process can be initiated against the Corporate Debtor. This Tribunal perused all the relevant papers and found them to be in order. The prosecution leading to the filing of the present petition has been detailed in the application prescribed under IBBI (Application to Adjudicating Authority) Rule, 2016. The matter is within the purview of Law of limitation - It is apparent from the reply of the Respondent that the payment of claim amount has been defaulted by the Corporate Debtor to the Financial Creditor. The claim stands established and prima facie presumption raised that there is default in payment of the amount due to the Financial Creditor and in view of the reply of the Respondent the debt is admitted by the Respondent - this Tribunal is inclined to initiate the Corporate Insolvency Resolution Process (CIRP) as against the Corporate Debtor as envisaged under the provisions of IBC, 2016. Petition admitted - moratorium declared.
Issues involved:
1. Filing of Company Petition under Section-7 of the IBC, 2016 by a Financial Creditor against a Corporate Debtor. 2. Admission of claim by the Respondent and initiation of Corporate Insolvency Resolution Process (CIRP). 3. Appointment of Insolvency Resolution Professional (IRP) and invoking moratorium under Section 14 of IBC, 2016. 4. Compliance with timelines and provisions of IBC, 2016 during the CIRP. 5. Directions for deposit of funds by the Financial Creditor and cooperation of all personnel with the IRP. Analysis: 1. The Company Petition was filed under Section-7 of the IBC, 2016 by a Financial Creditor against the Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed outstanding debt, conversion of debt through a Loan Agreement, and default by the Corporate Debtor, amounting to ?1,91,47,151. The Respondent admitted the claim, leading to the Tribunal's inclination to initiate the CIRP. 2. The Respondent's admission of the claim facilitated the initiation of the CIRP against the Corporate Debtor. The Tribunal found the relevant documents in order and within the purview of the Law of limitation, establishing the default in payment by the Corporate Debtor to the Financial Creditor. 3. The Tribunal appointed an Insolvency Resolution Professional (IRP) to take over the affairs of the Corporate Debtor during the CIRP. The moratorium under Section 14 of the IBC, 2016 was invoked, and the Financial Creditor was directed to deposit funds for the IRP's expenses. The IRP was mandated to comply with the timelines specified in the IBC, 2016 and manage the affairs of the Corporate Debtor. 4. The Financial Creditor was directed to deposit a specific sum to the IRP's account, and the IRP was instructed to file status reports on the progress of the CIRP. The management of the Corporate Debtor's affairs vested with the IRP, and all personnel, including promoters and directors, were required to cooperate with the IRP during the process. 5. The Tribunal communicated the order to the Financial Creditor, Corporate Debtor, and the Interim Resolution Professional (IRP) for immediate action, ensuring compliance with Section 9 of the IBC, 2016. The Company Petition was admitted, and the IRP was tasked with overseeing the CIRP as per the provisions of the IBC, 2016. This detailed analysis covers the legal judgment comprehensively, addressing all issues involved in the case.
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