9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 145 - 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 - HELD THAT - Since the Corporate Debtor has committed default in payment of the outstanding debt of the Operational Creditor, the petition under section 9 of the Code filed by the Operational Creditor deserves to be admitted. Application admitted - moratorium declared.
Issues:
Initiation of corporate insolvency resolution process under section 9 of the Insolvency and Bankruptcy Code, 2016. Analysis: The petition was filed by the Operational Creditor seeking initiation of corporate insolvency resolution process against the Corporate Debtor due to non-payment of outstanding audit fees. The Operational Creditor provided auditing services to the Corporate Debtor and issued a Demand Notice when payments were not made. The Corporate Debtor admitted the outstanding amount but cited financial constraints. The Operational Creditor submitted various documents to support the claim, including invoices, bank statements, and balance sheets. The Corporate Debtor, in its reply, acknowledged the debt but claimed inability to pay immediately due to financial difficulties. During the proceedings, the Operational Creditor substantiated the outstanding debt with documented evidence, while the Corporate Debtor admitted to the debt and lack of funds to clear it. The Court found the Corporate Debtor in default of payment and admitted the Operational Creditor's petition under section 9 of the Insolvency and Bankruptcy Code, 2016. The Court declared a moratorium and public announcement in accordance with relevant sections of the Code, prohibiting certain actions against the Corporate Debtor and ensuring continuity of essential services during the moratorium period. The Court appointed an Interim Resolution Professional (IRP) to ascertain creditors' particulars and convene a Committee of Creditors for developing a resolution plan. The IRP was directed to identify a prospective Resolution Applicant within a specified timeframe. The Operational Creditor was instructed to deposit a certain amount with the IRP for preliminary expenses. The Court ordered the Registry to communicate the decision to all relevant parties and scheduled a follow-up date for filing a Progress Report. A certified copy of the order was to be issued upon request and compliance with formalities.
|
