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2021 (6) TMI 1019 - 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 - Notice with respect to the application was issued to the Corporate Debtor vide order dated 23.01.2020 of the Adjudicating Authority. Further, it has been observed that neither a reply to the Demand Notice nor to Section 9 application was filed by the Corporate Debtor - The dates of default which are continuing from 2015 onwards till 2019. Considering the limitation period, the invoices from 2016 to 2019 will be within limitation, the amount of which is more than 1 Lac and the default is continuing. The present application is filed on 19.01.2020. Hence the application is not time barred and filed within the period of limitation. The registered office of corporate debtor is situated in Delhi and therefore this Tribunal has jurisdiction to entertain and try this application - Having considered the facts and circumstances and the material available on record, the Application filed by the Operational Creditor is complete in all respect. This authority is satisfied that the Operational Debt which is due to the Applicant has remained unpaid and default has occurred. The Application is admitted and the commencement of the CIRP is ordered.
Issues:
1. Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency process. 2. Unpaid dues by the Corporate Debtor towards the Operational Creditor. 3. Compliance with mandatory provisions by the Operational Creditor. 4. Jurisdiction of the Tribunal to entertain the application. 5. Appointment of interim resolution professional and imposition of moratorium. Analysis: 1. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the sole proprietor of MADHU GAS SERVICES against ISHU FOODS PRIVATE LIMITED, seeking initiation of the Corporate Insolvency process. The Operational Creditor alleged that the Corporate Debtor failed to pay outstanding dues amounting to ?53,86,286/- for commercial cylinders supplied from 2015 to 2019, along with interest. 2. The Operational Creditor issued a demand notice to the Corporate Debtor, who did not respond, leading to the application for Corporate Insolvency Resolution Process. The Tribunal found the application complete and admitted it, noting the unpaid Operational Debt and occurrence of default by the Corporate Debtor. 3. The Tribunal confirmed that the Operational Creditor complied with the mandatory provisions of the Code, including issuing a demand notice and filing the application within the limitation period. The Corporate Debtor did not contest the claims, resulting in an ex-parte proceeding against them. 4. Considering the jurisdiction, as the registered office of the Corporate Debtor was in Delhi, the Tribunal had the authority to entertain and try the application, leading to the admission of the application and commencement of the Corporate Insolvency Resolution Process. 5. The Tribunal appointed an interim resolution professional and imposed a moratorium under Section 14 of the Code, restricting various actions against the Corporate Debtor's assets. Additionally, the Operational Creditor was directed to deposit a sum of ?2 lakhs to cover immediate expenses, which would be reimbursed as costs of the Corporate Insolvency Resolution Process. In conclusion, the Tribunal admitted the application, appointed an interim resolution professional, and imposed a moratorium to facilitate the Corporate Insolvency Resolution Process, ensuring compliance with the provisions of the Insolvency and Bankruptcy Code, 2016.
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