2019 (9) TMI 1122 - Tri - Insolvency and Bankruptcy

Maintainability of petition - Initiation of CIRP - Corporate debtor - default in repayment of debt - HELD THAT - Since the Operational Creditor having furnished the proof to establish that debt and default are in existence, for there being no dispute from the Corporate Debtor side against the claim made by the Operational Creditor, this Bench, having satisfied with the proof filed by the Operational Creditor in compliance of provisions of Sections 8 and 9 of the Insolvency and Bankruptcy Code, admits the instant Company Petition. Petition admitted - moratorium declared.

Summary

Issues:
Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 for non-payment of dues by the Corporate Debtor.

Analysis:
The Company Petition was filed by the Operational Creditor against the Corporate Debtor for non-payment of dues amounting to Rs. 13,46,848, including interest. The Operational Creditor supplied goods to the Corporate Debtor as per purchase orders, and invoices were raised from 28.08.2017 to 28.09.2017. The Corporate Debtor failed to make the payment, leading to the Operational Creditor issuing a statutory notice under Section 8 of the I&B Code on 11.09.2018. The Corporate Debtor did not respond to the notice or make any payment, prompting the Operational Creditor to file the Company Petition under Section 9 of the Code to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

During the hearings, the Corporate Debtor did not appear or provide any response. The counsel for the Corporate Debtor did not dispute the facts mentioned in the Company petition, and no reply was given to the Section 8 Notice. The Operational Creditor provided proof, including invoices and bank statements, to establish the existence of debt and default. As there was no dispute from the Corporate Debtor's side, the Bench admitted the Company Petition, satisfied with the proof filed by the Operational Creditor in compliance with Sections 8 and 9 of the Insolvency and Bankruptcy Code.

With the admission of the Petition, the Adjudicating Authority declared a moratorium prohibiting various actions against the Corporate Debtor, including institution of suits, transfer of assets, recovery of property, and termination of essential services. The order of moratorium would be in effect until the completion of the insolvency resolution process or liquidation of the Corporate Debtor. An Interim Resolution Professional (IRP) was appointed to carry out the functions under the IBC, with details of appointment and contact information provided in the judgment. The Registry was directed to communicate the order to the Operational Creditor, Corporate Debtor, and the IRP, and the Company Petition was admitted.