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2020 (2) TMI 816 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT - As claimed by the applicants as on date, the Corporate Debtor is liable to pay a sum of ₹ 7,69,417/-, as per Part IV of Form 5, to the applicants - The Applicants have filed an affidavit under section 9(3)(b) dated 29.01.2019 affirming that no notice of dispute has been given by the Corporate debtor relating to dispute of the unpaid operational debt. The registered office of corporate debtor is situated in Delhi and therefore this Tribunal has jurisdiction to entertain and try this application - The date of default as per Form V occurred from November 2018, hence the debt is not time barred and the application is filed within the period of limitation. The present application is complete and the Applicant is entitled to claim its dues, which remain uncontroverted by the Corporate Debtor, establishing the default in payment of the operational debt beyond doubt. The present application is admitted, in terms of section 9 (5) of IBC, 2016. Application admitted - moratorium declared.
Issues:
1. Application under section 9 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency process against a Private Limited Company. 2. Unpaid salaries of teaching staff leading to default by the Corporate Debtor. 3. Legal notices served to the Corporate Debtor and subsequent non-payment. 4. Appointment of Interim Resolution Professional and deposit of funds by Operational Creditors. 5. Moratorium and related provisions under the Insolvency and Bankruptcy Code, 2016. Analysis: 1. The application was filed under section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency process against a Private Limited Company. The Applicants, who were teaching staff at the Corporate Debtor's coaching center, claimed unpaid salaries for the months of September to November 2018, totaling to &8377; 7,69,417. The Corporate Debtor failed to pay despite legal notices and demand letters. 2. The Applicants detailed the recruitment process, execution of MoU for contractual appointments, and the subsequent default in salary payments by the Corporate Debtor. The Applicants provided a breakdown of outstanding salaries for each staff member, highlighting the total due amount. The Corporate Debtor neither disputed the claims nor made any payments towards the outstanding dues. 3. Legal notices were issued to the Corporate Debtor, first on 26.12.2018 demanding the default amount, and then under Section 8 of the IBC in Form 3 on 16.01.2019. The notices were duly delivered, but the Corporate Debtor did not respond or settle the dues. The application under section 9 of the IBC was filed on 09.04.2019, and the Corporate Debtor remained non-responsive, leading to an ex-parte proceeding. 4. The Tribunal, after finding the application complete and uncontroverted by the Corporate Debtor, admitted it under section 9(5) of the IBC. An Interim Resolution Professional was appointed, and Operational Creditors were directed to deposit funds to meet the expenses. The moratorium under Section 14(1) of the Code was imposed, with provisions for its enforcement during the period. 5. The Tribunal asserted its jurisdiction based on the Corporate Debtor's registered office location in Delhi. It confirmed that the debt was not time-barred, as the default occurred in November 2018. The order for admission was communicated to all relevant parties, including the Applicant, Corporate Debtor, and the appointed IRP, with instructions for compliance and record-keeping. This detailed analysis covers the key issues addressed in the judgment, providing a comprehensive overview of the legal proceedings and decisions made by the Tribunal.
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