2018 (5) TMI 2100 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - time limitation - HELD THAT - Since the amount of debt claimed is ₹ 2,54,84,828/- which is above 1 lakh and the default occurred on 24.07.2017, the debt is not time barred and the application is filed within the period of limitation - As the registered office of the Corporate Debtor is in Delhi, so the matter falls within the territorial jurisdiction of this Tribunal. The parameters to initiate CIRP as required under Insolvency and Bankruptcy Code are duly complied with and the application is complete - Corporate Debtor despite repeated service has not appeared before this Tribunal and existence of a default of debt due to the Applicant is established. The Tribunal is of the considered view that this application requires to be admitted and that CIRP process is required to be initiated against the Corporate Debtor. Application admitted - moratorium declared.

Summary

Issues Involved:
Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of Insolvency and Bankruptcy Code, 2016 for overdue outstanding payment by the Corporate Debtor.

Detailed Analysis:

1. Background and Application Filing:
The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP against the Corporate Debtor, Tehri Iron & Steel Casting Ltd., by Amrit Steels. The Applicant supplied old iron scrap to the Corporate Debtor, issued invoices, and claimed an overdue outstanding amount of ?2,54,84,828.

2. Debt Claim and Default:
The Applicant alleged that despite partial payments and return of iron scrap, the Corporate Debtor failed to clear the outstanding amount of ?2,54,84,828. The Applicant issued a notice under Section 8 of the IBC on 19.03.2018, following which the Corporate Debtor did not pay the demanded amount or raise any dispute.

3. Compliance and Jurisdiction:
The Applicant did not file a bank certificate as required under Section 9(3)(c) of the IBC but submitted an affidavit under Section 9(3)(b) confirming non-receipt of payments or disputes from the Corporate Debtor. The debt claimed was above ?1 lakh, not time-barred, and fell within the territorial jurisdiction of the Tribunal.

4. Admission of Application and Appointment of IRP:
The Tribunal found that the parameters to initiate CIRP were met, and the Corporate Debtor failed to appear despite being served. Thus, the application was admitted, and an Interim Resolution Professional (IRP) was appointed. The IRP was directed to make a public announcement regarding the admission of the application.

5. Moratorium and Further Proceedings:
Upon admission of the application, a moratorium was imposed on the Corporate Debtor as per Section 14(1) of the IBC, prohibiting certain actions against the Corporate Debtor's assets. Essential goods or services supply could not be terminated during the moratorium. The order of moratorium would remain in effect until the completion of the corporate insolvency resolution process.

6. Communication and Record-Keeping:
The Registry was instructed to communicate the order to the Applicant, Corporate Debtor, and the Insolvency and Bankruptcy Board of India (IBBI). Additionally, the IRP was to be provided with a copy of the order promptly for further proceedings.

This detailed analysis outlines the key aspects of the judgment, including the debt claim, default, compliance with legal requirements, admission of the application, imposition of moratorium, and procedural instructions for communication and record-keeping.