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2020 (2) TMI 1074 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and default or not - HELD THAT - It is noted that the Corporate Debtor has admitted the liability by the letter dated 30.01.2019, at p.59 of the Petition. The affidavit in reply dated 18.09.2019 of the Corporate Debtor, also admits the liability and states that the Corporate Debtor is not in position to repay the debt. This also establishes the existence of debt and default. 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, and the default is in excess of minimum amount of one lakh rupees stipulated under section 4(1) of the IBC. Therefore, the default stands established and there is no reason to deny the admission of the Petition - In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor. Petition admitted - moratorium declared.
Issues:
1. Jurisdiction of the Tribunal to deal with the petition. 2. Default in payment by the Corporate Debtor. 3. Completeness of the application by the Operational Creditor. 4. Admission of the petition and initiation of Corporate Insolvency Resolution Process (CIRP). 5. Appointment of Interim Resolution Professional (IRP) and related directions. Jurisdiction of the Tribunal: The judgment establishes that the Tribunal has jurisdiction to deal with the petition as the Corporate Debtor is a private company incorporated under the Companies Act, 1956, with its registered office in Maharashtra. This jurisdiction is crucial for the Tribunal to proceed with the case. Default in Payment: The Operational Creditor filed the petition due to the Corporate Debtor's failure to pay a principal amount of ?8,25,000.00 and interest of ?1,01,305.00 as of the date of default. The Corporate Debtor acknowledged the debt but failed to make the payment, leading to the establishment of default. Completeness of the Application: The Tribunal found the application by the Operational Creditor to be complete in all respects as required by law. The evidence presented clearly showed the default by the Corporate Debtor, meeting the minimum amount stipulated under the Insolvency & Bankruptcy Code (IBC). Admission of the Petition and CIRP Initiation: The Tribunal admitted the petition based on the Corporate Debtor's admission of liability and inability to repay the debt. The existence of debt and default was established, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. Appointment of Interim Resolution Professional (IRP) and Directions: The Tribunal appointed Mr. Bhavesh Mansukhbhai Rathod as the Interim Resolution Professional (IRP) for the Corporate Debtor. The judgment outlined the moratorium under section 14 of the IBC, specifying actions restricted during this period. Additionally, directions were given regarding the management of the Corporate Debtor during the CIRP, deposit of funds by the Operational Creditor, and communication of the order to relevant parties. This detailed analysis of the judgment covers the issues of jurisdiction, default, application completeness, petition admission, and IRP appointment, providing a comprehensive understanding of the Tribunal's decision in the case.
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