2019 (6) TMI 1246 - Tri - Insolvency and Bankruptcy

Initiation of Corporate Insolvency Resolution Process (CIRP) - Corporate Debtor - default of repayment of financial debt - HELD THAT - The present application is filed in conformity with the prescribed procedure and Rule by providing requisite information annexed with relevant documents. That apart, the present application is supported by a Board Resolution passed by the Corporate Applicant/Debtor company proposing CIRP for itself and by duly authorizing to Mr. Sanjay Mansukhbhai Ramani, being one of the directors, for filing the present application. It is also a matter of record in the present matter that the Respondent - Financial Creditor did not oppose the admission of the present IB Petition. It may be understood that under the provisions of Section 10(3)(b) of the Code it is mandatory on the part of the applicant to propose a name of an IRP in IB Petition, failing which such application may be found as incomplete. Therefore, the Corporate Applicant has properly proposed Mr.Vinod Tarachand Agrawal to act as IRP under the provisions of the Code. The present IB petition deserves admission under the Code. Therefore, the present IB Petition is admitted under Section 10 of the Insolvency Bankruptcy Code - moratorium declared.

Summary

Issues Involved:
Initiation of Corporate Insolvency Resolution Process under Section 10 of the Insolvency and Bankruptcy Code, 2016.

Analysis:

1. Filing of Application under Section 10:
- The Director of the Corporate Debtor filed an application under Section 10 of the Insolvency and Bankruptcy Code, seeking relief to initiate Corporate Insolvency Resolution Process for the company.
- The application provided details of the Corporate Applicant/Debtor, including its share capital structure and financial debts.

2. Authorization and Resolution by Board of Directors:
- The Board of Directors passed a resolution authorizing the filing of the application for Corporate Insolvency Resolution Process.
- The Corporate Applicant disclosed necessary particulars and information as required by the Code.

3. Financial Debts and Creditors:
- The State Bank of India was mentioned as a Financial Creditor, with several Operational Creditors listed in the application.
- Details of default in financial debt to the State Bank of India and operational debts to various creditors were provided.

4. Appointment of Interim Resolution Professional:
- The Corporate Applicant proposed Mr. Vinod Tarachand Agrawal as the Interim Resolution Professional in the application.
- The Respondent Financial Creditor did not oppose the initiation of Corporate Insolvency Resolution Process.

5. Admission and Moratorium Declaration:
- The Tribunal found the application complete and admitted it under Section 10 of the Code.
- A moratorium was declared, appointing Mr. Vinod Tarachand Agrawal as the Interim Insolvency Resolution Professional.
- Various consequential orders and directions were issued, including the prohibition of suits against the Corporate Debtor during the Moratorium period.

6. Final Orders and Directions:
- The Tribunal directed the communication of the order to relevant parties, including the Interim Resolution Professional and Registrar of Companies.
- Specific provisions regarding essential goods/services supply and exceptions to Section 14(1) were outlined in the final orders.

7. Conclusion:
- The Corporate Insolvency Resolution Process was initiated, and necessary steps were taken to manage the affairs of the Corporate Debtor during the resolution process.
- The Tribunal admitted the application, appointed an Interim Resolution Professional, and imposed a moratorium to protect the interests of all stakeholders involved.