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2018 (5) TMI 643 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - outstanding debt - Held that - The Operational Creditor has complied with Section 9(3)(b)&(c) of the I&B Code, 2016, by filing Affidavit wherein, it has been deposed that the Operational Creditor has not received any notice of dispute regarding the pending amount from the Corporate Debtor. The Bank certificate issued by the Axis Bank dated 22.08.2017 has also been placed on record which is placed at page 81 of the typed set filed with the Application. The Operational Creditor has fulfilled all the requirements of law for admission of the Application. This Authority is satisfied that the Corporate Debtor has committed default in making payment of the outstanding debt claimed by the Operational Creditor. Therefore, appliction is admitted and the commencement of the Corporate Insolvency Resolution Process is ordered which ordinarily shall get completed within 180 days, reckoning from the day this order is passed. The moratorium is declared which shall have effect from the date of this Order till the completion of Corporate Insolvency Resolution Process.
Issues:
Admission of the insolvency application under Section 9 of the Insolvency & Bankruptcy Code, 2016; Default in payment by the Corporate Debtor; Appointment of Interim Resolution Professional (IRP); Declaration of moratorium; Compliance with legal requirements for admission of the application. Admission of Insolvency Application: The Operational Creditor filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 seeking to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor. The application prayed for the admission of the application, declaration of moratorium, and appointment of an Interim Resolution Professional (IRP). The Corporate Debtor was proceeded ex-parte due to non-representation. The Operational Creditor claimed an outstanding debt of ?79,92,341 against the Corporate Debtor for the supply of cotton bales, supported by invoices and a demand notice under Section 8(1) of the Code. Default in Payment by Corporate Debtor: The Corporate Debtor failed to make the balance payment to the Operational Creditor despite partial payments. The Operational Creditor submitted evidence of the outstanding debt, interest details, and invoices. The Corporate Debtor did not respond to the demand notice issued under Section 8(1) of the Code. The balance sheet filed by the Corporate Debtor reflected trade payables of ?53,573,132 as current liabilities. Appointment of Interim Resolution Professional (IRP) and Declaration of Moratorium: The Operational Creditor complied with the legal requirements for admission of the application, including filing an affidavit and providing proof of non-disputed pending amount. The Tribunal admitted the application, ordered the commencement of the Corporate Insolvency Resolution Process, and declared a moratorium. The moratorium prohibited various actions against the Corporate Debtor and ensured the continuity of essential goods or services during the period. Compliance with Legal Requirements: The Operational Creditor fulfilled all legal requirements for the admission of the application. The Tribunal found that the Corporate Debtor defaulted in payment, leading to the admission of the application. An IRP was appointed from the Panel of Insolvency Professionals recommended by the IBBI. The IRP was directed to manage the Corporate Debtor immediately, make public announcements, and call for creditor claims. The Directors and management of the Corporate Debtor were instructed to cooperate with the IRP as per the provisions of the Code. The Registry was directed to communicate the order to all relevant parties for compliance.
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