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2019 (6) TMI 1362 - Tri - Insolvency and BankruptcyAdmissibility of application - initiation of CIRP - Corporate Debtor - Section 7 of the Insolvency and Bankruptcy Code, 2016 r/w Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 - HELD THAT - The documentary evidence placed on the case file is sufficient in order to ascertain the existence of a default on the part of the Corporate Debtor. The Financial Creditor has fulfilled all the requirements of law including the name proposed for appointment of IRP after obtaining consent in Form-2. Hence, the Application stands admitted. 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. Mr. A.R. Ramasubramania Raja is hereby appointed as IRP as has been proposed by the Financial Creditor - The moratorium is hereby declared which shall have effect from the date of this Order till the completion of Corporate Insolvency Resolution Process - Application admitted.
Issues involved:
Admission of insolvency application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, appointment of Interim Resolution Professional (IRP), declaration of moratorium, compliance with I&B Code provisions. Detailed Analysis: 1. Admission of Insolvency Application: The application was filed by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor for an outstanding amount. The Financial Creditor claimed ?1,17,75,000 as due, which the Corporate Debtor failed to pay. The Court found sufficient documentary evidence to establish the default by the Corporate Debtor, fulfilling all legal requirements for admission of the application. 2. Appointment of IRP: Mr. A.R. Ramasubramania Raja was appointed as the Interim Resolution Professional (IRP) as proposed by the Financial Creditor. The IRP was directed to take immediate charge of the Corporate Debtor's management and initiate the Corporate Insolvency Resolution Process. No disciplinary proceedings were pending against the appointed IRP, ensuring compliance with Form-2 requirements. 3. Declaration of Moratorium: A moratorium was declared from the date of the order until the completion of the Corporate Insolvency Resolution Process. The moratorium prohibited various actions, including institution or continuation of suits against the Corporate Debtor, transfer of assets, enforcement of security interests, and recovery of property. Essential goods or services supply to the Corporate Debtor/Guarantor was protected during the moratorium period. 4. Compliance with I&B Code Provisions: The IRP was directed to comply with specific sections of the Insolvency and Bankruptcy Code, including Sections 13(2), 15, 17, and 18. Directors, promoters, or individuals associated with the Corporate Debtor's management were instructed to provide assistance and cooperation to the IRP as mandated by Section 19 for the effective discharge of duties under Section 20 of the I&B Code, 2016. 5. Administrative Directions: The Registry was directed to communicate the order to all relevant parties promptly, including the IRP, Financial Creditor, Corporate Debtor, and the Registrar of Companies. The IRP's contact details were provided for immediate correspondence and compliance with the order. The order was pronounced in open court, ensuring transparency and legal formalities. This detailed analysis of the judgment highlights the key legal aspects and decisions made by the Tribunal concerning the insolvency application, appointment of IRP, declaration of moratorium, and compliance with the provisions of the Insolvency and Bankruptcy Code, 2016.
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