9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 114 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditor - existence of debt and dispute or not - time limitation - HELD THAT - The Operational Creditor has proved existence of debt and default. Moreover, this application was filed on 04.11.2019. The pecuniary jurisdiction of this Adjudicating Authority, at the time of filing this application was debt due one lakh and above. Hence, this Adjudicating Authority has jurisdiction to adjudicate this petition. The registered office of the Corporate Debtor is also within the State of Tamilnadu, hence this Adjudication has jurisdiction. The alleged debt due is between the period from 01.04.2018 to 17.07.2019. Hence, it is well within the period of limitation. This Adjudicating Authority is inclined to admit the Application as has been filed by the Operational Creditor and consequently Corporate Insolvency Resolution Process is initiated - Application admitted - moratorium declared.
Issues:
Application under Section 9 of I&B Code for initiation of CIRP based on default in payment of operational debt. Analysis: The application was filed by the Operational Creditor against the Corporate Debtor for defaulting on an operational debt of ?25,34,352. The Operational Creditor provided evidence of the debt through invoices and legal notices, which were acknowledged by the Corporate Debtor. The Corporate Debtor, in response, claimed that the material prices were high, leading to a negotiation for payment in instalments. However, the cheques issued for this purpose bounced, leading to a complaint under the Negotiable Instruments Act. Despite making partial payments, the Corporate Debtor disputed the total claim amount. The Adjudicating Authority found that the Operational Creditor had proven the existence of debt and default, establishing jurisdiction to adjudicate the petition. The debt was within the period of limitation, and the Adjudicating Authority decided to admit the application. An Interim Resolution Professional was appointed, and the moratorium under Section 14 of the Code was imposed on the Corporate Debtor, preventing certain actions against its assets. During the moratorium period, essential supplies to the Corporate Debtor were to continue, and the duration of the moratorium was specified. The Operational Creditor was directed to pay a sum to the Interim Resolution Professional for expenses. The application was admitted, and the moratorium came into effect immediately. The Order was communicated to all relevant parties and the Interim Resolution Professional for further action. Therefore, the judgment allowed the application under Section 9 of the I&B Code, initiating the Corporate Insolvency Resolution Process against the Corporate Debtor based on the default in payment of operational debt.
|
