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2022 (3) TMI 1106 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - Existence of debt and dispute or not - HELD THAT - It is seen that the Respondent/Corporate Debtor filed a Memo vide diary no. 1700 dated 12.03.2020 admitting the debt and its inability to pay the same to the Petitioner. In view of the same, the C.P. is liable to be admitted. The present petition being complete and having established the default in payment of the financial debt and for the default amount being above ₹ 1,00,00,000/-, the petition is admitted in terms of Section 7 of the IBC, 2016 - petition admitted - moratorium declared.
Issues:
- Initiation of Corporate Insolvency Resolution Process under Section 7 of IBC, 2016 against the Corporate Debtor. - Admission of debt and inability to pay by the Corporate Debtor. - Appointment of Interim Resolution Professional. - Constitution of Committee of Creditors. - Imposition of moratorium and its effects. Initiation of Corporate Insolvency Resolution Process: The Company Petition was filed by the Financial Creditors under Section 7 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor for defaulting on a substantial amount. The petition established the default in payment, leading to the admission of the petition and the declaration of moratorium under Section 14 of the Code. Admission of Debt and Inability to Pay: The Corporate Debtor admitted the debt and its inability to pay the same to the Petitioners, as evidenced by a Memo filed by the Corporate Debtor. This admission led to the acceptance of the petition and the declaration of moratorium as a consequence. Appointment of Interim Resolution Professional: Mr. Ratnakar Shetty was proposed as the Interim Resolution Professional (IRP) in the petition. The credentials of Mr. Ratnakar Shetty were found to be satisfactory, and he was appointed as the IRP for the Corporate Debtor. The IRP was directed to fulfill the obligations under various sections of the IBC, 2016. Constitution of Committee of Creditors: Upon appointment, the IRP was tasked with collating all claims against the Corporate Debtor and determining its financial position. Subsequently, the IRP was required to constitute a Committee of Creditors, file a report certifying the Committee's constitution, and convene the first meeting within the stipulated time frame. Imposition of Moratorium and its Effects: The order declared a moratorium in accordance with Section 14 of the IBC, 2016. Various prohibitions were imposed during the moratorium, including the institution of suits, transferring of assets, recovery of property, and termination of essential services. The moratorium was to remain in effect until the completion of the Corporate Insolvency Resolution Process or until specific actions were taken by the Bench. In conclusion, the judgment addressed the issues of initiating insolvency proceedings, admitting the debt, appointing an IRP, constituting a Committee of Creditors, and imposing a moratorium with detailed instructions and prohibitions to be followed during the process.
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