2021 (5) TMI 313 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - Service of notice - HELD THAT - The notice of summons issued to respondent was returned with the endorsement left . Hence notice by way of publication was ordered. As per the order of this Tribunal dated 10.02.2021, the operational creditor was directed to take fresh notice to the respondent in the leading newspapers and same was effected in leading newspapers one in English and another in vernacular Tamil both dated 26.02.2021. Inspite of this, the Corporate Debtor remained absent. On 23.03.2021, the respondent was called absent and set ex-parte. Upon perusal of pleading, documents and submission, this Adjudicating Authority is of the view that debt and default has been established by the Operational Creditor - application admitted - moratorium declared.

Summary

Issues involved:
Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process due to default in payment by Corporate Debtor.

Detailed Analysis:
1. The Application filed by the Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016, sought to initiate Corporate Insolvency Resolution Process against the Corporate Debtor for defaulting in payment of a substantial amount, including interest. The Operational Creditor provided detailed information regarding the contractual relationship and outstanding payments.

2. The Operational Creditor presented evidence such as work orders, invoices, statement of account, and balance sheet to support their claim of non-payment by the Corporate Debtor. Despite multiple requests and legal notices, the Corporate Debtor failed to settle the outstanding debt, leading to the initiation of the insolvency proceedings.

3. The Tribunal, after examining the submissions, documents, and evidence presented, concluded that the debt and default by the Corporate Debtor were established. Consequently, the Tribunal decided to admit the Application and initiate Corporate Insolvency Resolution Process against the Corporate Debtor.

4. As the Operational Creditor did not name an Insolvency Resolution Professional, the Tribunal appointed an Interim Resolution Professional based on the list provided by the Insolvency and Bankruptcy Board of India. The Tribunal outlined the moratorium period and restrictions applicable to the Corporate Debtor during this phase.

5. The Tribunal directed the Operational Creditor to pay a specified sum to the appointed Interim Resolution Professional to cover necessary expenses. The Order was communicated to all relevant parties and authorities for record-keeping and compliance.

6. In conclusion, the Application was admitted, and the moratorium period came into effect, signaling the beginning of Corporate Insolvency Resolution Process against the Corporate Debtor. All parties involved were duly informed of the Tribunal's decision for further actions and compliance.