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2019 (10) TMI 1218 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to pay outstanding amount - dishonor of cheque - HELD THAT - The Respondent-Corporate Debtor Company has committed default in making payment of its operational debt - Despite issuance of Demand Notice under Section 8 of the I B Code, the Corporate Debtor did not choose to pay the operational debts due nor gave reply to the above stated statutory notice. The present IB Petition is found complete and fit for triggering the Insolvency Resolution Process in respect of Corporate Debtor - the present IB Petition, filed under Section 9 of the Code, deserves admission. Petition admitted - moratorium declared.
Issues:
Initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016. Analysis: The petition was filed by an Operational Creditor seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor company for non-payment of dues. The Operational Creditor had supplied chemicals to the Corporate Debtor, and despite repeated requests for payment, the dues remained unpaid. The Operational Creditor issued a Demand Notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, which was received by the respondent but no full payment was made. The Operational Creditor claimed an outstanding amount of ?27,45,941, which included the principal amount and interest. The Corporate Debtor did not dispute the debt or make full payment, leading to the petition for initiation of insolvency resolution process. The Tribunal reviewed the material on record and the oral submissions made by the Petitioner. The Petitioner provided detailed information about the transactions, invoices, and the outstanding amount due from the Corporate Debtor. The Tribunal noted that the Corporate Debtor had not contested the debt or made the full payment despite receiving the Demand Notice. The Tribunal found the petition to be complete and fit for triggering the Insolvency Resolution Process against the Corporate Debtor, leading to the admission of the petition under Section 9 of the Code. In accordance with the Circular of Insolvency and Bankruptcy Board of India, the Tribunal appointed an Insolvency Professional from a panel to act as an Interim Resolution Professional in the case. The Tribunal also ordered a moratorium under Section 13(1)(a) of the IB Code, prohibiting certain actions against the company, including the institution of suits, transferring of assets, and recovery of property. The moratorium was intended to facilitate the Corporate Insolvency Resolution Process and protect the interests of all stakeholders involved. The Tribunal directed the Registry to communicate the orders to the concerned parties and set a deadline for the Interim Resolution Professional to submit willingness to act. The Corporate Debtor was also informed of the admission of the petition. The Tribunal concluded the judgment by admitting the Corporate Insolvency Resolution Process petition and made no order as to costs, signifying the seriousness of the matter and the need for resolution through the insolvency process.
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