2017 (10) TMI 354 - Tri - Insolvency and Bankruptcy

Corporate Insolvency process - Held that - All the necessary requirements contemplated by Section 9 of the Code stands complied with. The Operational Creditor has disclosed the relevant data by placing on record the evidence by way of invoices, copy of ledger account and Evidence regarding issue and service of notice of default under Section 8 has also been filed along with compliance affidavit. In View of the above, we are satisfied that the operational creditor meets with the prescription of Section 9 of the Code and the Rules framed thereunder. The matter be referred to Insolvency and Bankruptcy Board of India for appointment of Corporate Insolvency Resolution Professional. A moratorium would also come in operation.

Summary

Issues:
- Petition for winding up under Companies Act 1956
- Supply of goods by operational creditor to corporate debtor
- Dishonored cheques and unpaid operational debt
- Application under Insolvency and Bankruptcy Code, 2016
- Compliance with Section 9 of the Code
- Appointment of Interim Resolution Professional
- Directions issued by the Tribunal

Petition for Winding Up under Companies Act 1956:
The petitioner, a financial creditor, filed a petition for winding up against the respondent company under Section 439 read with Section 443 of the Companies Act 1956. The matter was transferred from the Delhi High Court to the National Company Law Tribunal. The respondent company, engaged in material handling and mineral processing, assured timely payments for goods supplied by the petitioner.

Supply of Goods by Operational Creditor to Corporate Debtor:
The petitioner, an operational creditor, supplied goods to the respondent company during a specific period and raised invoices totaling to a certain amount. A portion of the amount was paid, but the balance remained unpaid. The cheques issued by the corporate debtor for the remaining amount were dishonored upon presentation.

Dishonored Cheques and Unpaid Operational Debt:
The operational creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to the non-payment of the outstanding debt by the corporate debtor. The compliance affidavit demonstrated the service of the petition and demand notice, along with evidence of the unpaid operational debt.

Application under Insolvency and Bankruptcy Code, 2016:
The Tribunal found that all necessary requirements under Section 9 of the Code were met. The operational creditor provided evidence through invoices, ledger accounts, and proof of notice of default. Consequently, the petition was admitted, and directions were issued for further proceedings.

Compliance with Section 9 of the Code:
The Tribunal acknowledged the compliance with Section 9 of the Insolvency and Bankruptcy Code, noting the submission of relevant data and evidence by the operational creditor. The compliance affidavit supported the operational creditor's claim, leading to the satisfaction of the Tribunal regarding the creditor meeting the prescribed requirements.

Appointment of Interim Resolution Professional:
The Tribunal directed the matter to be referred to the Insolvency and Bankruptcy Board of India for the appointment of a Corporate Insolvency Resolution Professional. The Resolution Professional was tasked with making a public announcement and initiating the Corporate Insolvency Resolution Process.

Directions Issued by the Tribunal:
The Tribunal issued directions for the commencement of a moratorium, prohibiting certain acts against the corporate debtor. The order of moratorium was to remain in effect until the completion of the Corporate Insolvency Resolution Process. The Insolvency Professional was mandated to fulfill specific duties under the Code, and all personnel associated with the corporate debtor were obligated to cooperate with the Interim Resolution Professional. The petition was disposed of in accordance with the outlined terms.