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2019 (8) TMI 553 - Tri - Insolvency and BankruptcyMaintainability of application - Initiation of Corporate Insolvency Resolution Process - Corporate Debtor - outstanding amount due and payable by the corporate debtor - time limitation - HELD THAT - The default occurred from 16.10.2017, hence the debt is not time barred and the application is filed within the period of limitation. The application in Form 5 is complete; no payment of the unpaid operational debt of ₹ 2,80,000/- has been made; demand notice in Form No. 3 and 4 was duly served on corporate debtor through registered post but no reply was received by Operational Creditor; the affidavit under section 9 (3) (b) of no dispute has been filed. In view of the satisfaction of the conditions provided for in Section 9(5)(i) of the Code, we admit the application and direct the initiation of CIRP of M/s. Ojasvi Agritech Private Limited. Application admitted - moratorium declared.
Issues: Application under section 9 of Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency Resolution Process.
Issue 1: Background and Parties Involved The application was filed by an operational creditor seeking initiation of Corporate Insolvency Resolution Process against a Private Limited Company, the Corporate Debtor. The Applicant provided local transport services, and the Corporate Debtor failed to make payments for services rendered, leading to the application under section 9 of the Insolvency and Bankruptcy Code, 2016. Issue 2: Debt Details and Default The Applicant claimed an outstanding amount of ?3,30,643, including principal and interest, due from the Corporate Debtor. The debt arose from a fixed monthly rent agreement for transport services, with invoices raised from July 2017 to January 2018. Despite a demand notice under Section 8 of the Code, the Corporate Debtor did not respond or make any payments. Issue 3: Compliance and Affidavit The Applicant corrected the default date and amount claimed in an affidavit after a reserved order. A certificate from the Bank confirmed non-receipt of the due amount, fulfilling the requirement under section 9(3)(c). The Corporate Debtor's director admitted liability, stating inability to clear the debt, with a board resolution authorizing the admission. Issue 4: Jurisdiction and Limitation The Tribunal established jurisdiction due to the Corporate Debtor's location in Jaipur. The debt was not time-barred as the default occurred on 16.10.2017, and the application was within the limitation period. Issue 5: Tribunal Decision and Resolution Professional After verifying the application's completeness and satisfaction of conditions under Section 9(5)(i) of the Code, the Tribunal admitted the application and directed the initiation of Corporate Insolvency Resolution Process. An Interim Resolution Professional was appointed, and the application was admitted under Section 9(5) of the IBC, triggering a moratorium as per Section 14(1) to prohibit certain actions against the Corporate Debtor. Issue 6: Moratorium and Resolution Process The moratorium's effect started from the order date until the completion of the insolvency resolution process. Exceptions to the moratorium were outlined under Sections 14(2) and 14(3) of the Code. The Interim Resolution Professional's duties and obligations were detailed, emphasizing compliance with the Code, Rules, and Regulations. Issue 7: Communication and Compliance The order was to be communicated to the Applicant, Corporate Debtor, and the appointed Interim Resolution Professional. Copies were also forwarded to the Insolvency and Bankruptcy Board of India for records, ensuring transparency and compliance with procedural requirements. This detailed analysis covers the key aspects of the judgment, including the application, debt details, compliance, tribunal decision, and the resolution process, providing a comprehensive overview of the legal proceedings and outcomes.
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