2022 (4) TMI 1472 - Tri - Insolvency and Bankruptcy

Maintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of its debt and dispute or not - HELD THAT - The debt is due and payable both in fact and in law - It is seen from the records that notice of default under Section 8 has been delivered and an affidavit dated 24.12.2021 under Section 9(3)(b) of IBC has also been filed affirming that no notice of dispute has been given by the corporate debtor relating to dispute of the unpaid operational debt. The applicant has also filed an affidavit under section 9(3)(c) dated 24.12.2021 affirming that the applicant has not received any amount after serving of demand notice till date and a certificate from the banker of the operational creditor is enclosed. The registered office of the corporate debtor is situated in Delhi and therefore this Tribunal has jurisdiction to entertain and try this application - the present application is complete and the operational creditor is entitled to claim its dues which remain uncontroverted by the Corporate Debtor establishing the default in payment of the operational debt beyond doubt. The present application is admitted in terms of section 9 (5) of IBC 2016. Petition admitted - moratorium declared.

Summary

Issues:
Application under section 9 of Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency process against a Corporate Debtor.

Analysis:
The Operational Creditor filed an application under section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency process against the Corporate Debtor. The Operational Creditor claimed that they had supplied materials to the Corporate Debtor and raised invoices totaling a significant sum. Despite reminders and demand notices, the Corporate Debtor failed to pay the outstanding dues, citing financial stress as the reason for non-payment. The Operational Creditor submitted proof of delivery of notices and invoices to the Corporate Debtor, who did not dispute the debt or make any payments.

The Adjudicating Authority examined the additional affidavit filed by the Operational Creditor, which clarified the date of default as per the respondent's acknowledgment of inability to pay outstanding dues. The Authority found the application to be in compliance with the IBC, 2016, and not hit by Section 10A, thereby maintaining its validity. The debt was deemed due and payable both factually and legally, with all necessary documents and affidavits supporting the claim of default.

The Authority noted that the Corporate Debtor did not contest the default, and all procedural requirements under Section 9 of the IBC were fulfilled by the Operational Creditor. Consequently, the application was admitted, and jurisdiction was established as the Corporate Debtor's registered office was in Delhi. The Operational Creditor proposed an Interim Resolution Professional (IRP) for the Corporate Debtor, subject to certain conditions and disclosures.

Furthermore, the Authority directed the Operational Creditor to deposit a specified sum with the appointed IRP to cover necessary expenses. The admission of the application triggered a moratorium under Section 14(1) of the IBC, prohibiting certain actions against the Corporate Debtor. The order was communicated to all relevant parties, including the IRP, and necessary compliance steps were outlined, including updating records with the Registrar of Companies.

In conclusion, the Adjudicating Authority pronounced the order in a Virtual Hearing, ensuring the proper initiation of the Corporate Insolvency process in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.