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2020 (1) TMI 715 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make payment of a sum - debt due and payable or not - HELD THAT - There is nothing placed on record to show that the Corporate Debtor has supplied a separate set of goods in favour of another entity worth ₹ 13,89,752/- as per the directions of the Operational Creditor - it is not clear how the supply of goods by the Corporate Debtor to another completely different entity can result in the debt due to the Corporate Debtor being cleared, unless it is shown that there was an express instruction to this effect from the Operational Creditor itself. Since nothing is placed on record in spite of opportunity given to the Corporate Debtor, it is difficult to accept the version of the Corporate Debtor. The application made by the Operational Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable - Application admitted - moratorium declared.
Issues: Company Petition under section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) for Corporate Insolvency Resolution Process (CIRP) against a Private Limited Company.
Analysis: 1. Jurisdiction: The Corporate Debtor is a private company incorporated under the Companies Act, 1956, with jurisdiction falling under the Registrar of Companies (RoC), Maharashtra, Mumbai. The petition was filed by the Operational Creditor seeking initiation of CIRP due to non-payment of a significant sum by the Corporate Debtor. 2. Debt Default: The Operational Creditor supplied goods as per a Purchase Order, invoiced the Corporate Debtor, and received a post-dated cheque. However, the cheque was dishonored, leading to subsequent issuance of another cheque. After partial payment, a substantial amount remained outstanding, prompting the Operational Creditor to file the petition. 3. Defence by Corporate Debtor: The Corporate Debtor defended by claiming transactions with another entity cleared the debt owed to the Operational Creditor. However, the Adjudicating Authority found no evidence supporting this claim, emphasizing the lack of proof of separate goods supplied as per the Operational Creditor's directions. 4. Admission of Petition: The Adjudicating Authority acknowledged the completeness of the Operational Creditor's application, establishing the Corporate Debtor's default exceeding the minimum amount stipulated under the IBC. Consequently, the petition was admitted, and CIRP initiation against the Corporate Debtor was ordered. 5. Moratorium and IRP Appointment: The order included provisions for a moratorium under section 14 of the IBC, ensuring protection of the Corporate Debtor's assets during the CIRP. The appointment of an Interim Resolution Professional (IRP) was mandated, with specific directives for the management of the Corporate Debtor during the CIRP period. 6. Operational Procedures: Various operational procedures were outlined, including the deposit of funds by the Operational Creditor for expenses, communication of the order to relevant parties, and compliance reporting to regulatory authorities. The order aimed to streamline the CIRP process and ensure adherence to legal requirements. This detailed analysis encapsulates the key legal aspects and procedural steps outlined in the judgment delivered by the National Company Law Tribunal, Mumbai, regarding the Company Petition filed under the Insolvency & Bankruptcy Code, 2016.
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