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2022 (4) TMI 139 - Tri - Insolvency and BankruptcyMaintainability 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 - time limitation - HELD THAT - The Notice in this case was ordered by this Tribunal on 03.04.2019, despite various dates of hearing, there is no response given by the Corporate Debtor - In this case the debt has been intimated in terms of Section 8 of the Code r/w Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 issued on dated 04.12.2018 annexed as P-7 at pg 71-136 and has duly been served. However, Respondent/Corporate Debtor is not disputing the same. The debt is due on 31.10.2017 and this application is well within time. The debt and default has been established by the Operational Creditor against the Corporate Debtor in re-payment of the Operational Debt. The Petition filed under section 9 of the Code fulfils all the requirements of Section 9(5) of IBC, 2016. Therefore, the Petition deserves to be admitted. Hence, this authority is inclined to initiate the CIR Process of Corporate Debtor. Accordingly, the captioned petition is admitted. Petition admitted - moratorium declared.
Issues: Application under Section 9 of the IBC, 2016 by Operational Creditor for unpaid services; Validity of Demand Notice; Change of Registered Office of Corporate Debtor; Appointment of Insolvency Professional; Moratorium Declaration.
1. Application under Section 9 of the IBC, 2016: The judgment involves an application by an Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016 against a Corporate Debtor who failed to pay for property management services provided. The Operational Creditor raised invoices as per the agreement terms, but the Corporate Debtor defaulted in payment, leading to the initiation of the insolvency process. 2. Validity of Demand Notice: The Operational Creditor issued a Demand Notice in accordance with Section 8 of the Code, 2016 to the Corporate Debtor, both through physical delivery and email. The notice detailed the outstanding debt and was sent to the Corporate Debtor's registered office address and directors. The Tribunal found that the notice was duly served, and the Corporate Debtor did not dispute the debt or respond to the notices. 3. Change of Registered Office of Corporate Debtor: The Corporate Debtor allegedly shifted its registered office, but the Demand Notice was sent and delivered before the change was officially recorded with the Registrar of Companies. The Tribunal considered the notice as validly served based on precedents where notice delivery to the previous registered address was deemed sufficient until the change was updated in official records. 4. Appointment of Insolvency Professional: The Tribunal appointed an Insolvency Professional as the Interim Resolution Professional to manage the Corporate Debtor's affairs. The IRP was directed to make a public announcement, call for claim submissions, and manage the CIRP process promptly. The Operational Creditor was instructed to deposit a specified amount with the IRP for immediate expenses, subject to adjustment by the Committee of Creditors. 5. Moratorium Declaration: A moratorium was declared from the date of the order until the completion of the Corporate Insolvency Resolution Process (CIRP) as per Section 14 of the IBC, 2016. The moratorium prohibited various actions against the Corporate Debtor, including legal proceedings, asset transfers, and recovery actions. Essential supplies to the Corporate Debtor were protected during this period, and the IRP was mandated to comply with relevant provisions of the Code. This detailed analysis of the judgment highlights the key issues addressed by the Tribunal, including the application under Section 9 of the IBC, validity of the Demand Notice, implications of the change in the registered office of the Corporate Debtor, appointment of an Insolvency Professional, and the declaration of a moratorium to facilitate the Corporate Insolvency Resolution Process.
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