2022 (5) TMI 1306 - 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 - Whether the documentary evidence furnished with the application establishes an operational debt as claimed by the Operational Creditor and the Corporate Debtor defaulted in payment of the said operational debt? - HELD THAT - When the Corporate Debtor having duly acknowledged various invoices referred to by the applicant and further stated that the industrial equipments/consumable products supplied by the Operational Creditor are received in good condition, the Corporate Debtor is precluded from contending contra, that too in its counter. It may be stated herein that prior to receipt of Demand Notice dated 20.03.2019 the Corporate Debtor never raised any such plea or any dispute. So much so, the submission of the learned counsel for the Corporate Debtor that the seal and signature of some of the invoices are forged and fabricated is baseless and hence rejected. The ledger filed by the Operational Creditor for the period for the period from 01.04.2014 to 31.03.2019 in respect of the goods delivered under various invoices mentioned above, is not disputed by the Corporate Debtor. The Corporate Debtor has not placed any material to show that for the goods received under the invoices, the Corporate Debtor had made necessary payment. Therefore, we find sufficient force in the plea of the learned counsel for the Operational Creditor that the Corporate Debtor had defaulted in discharge of operational debt. Thus, existence of operational debt and its default by the Corporate Debtor since established, it is a fit case to put the Corporate Debtor under CIRP. Petition admitted - moratorium declared.

Summary

Issues:
- Admission of petition under section 9 of Insolvency and Bankruptcy Code, 2016
- Establishment of operational debt and default by the Corporate Debtor
- Appointment of Interim Resolution Professional

Admission of Petition under Section 9:
The petition was filed by the Operational Creditor seeking admission under section 9 of the Insolvency and Bankruptcy Code, 2016, stating that a principal amount along with interest was due and payable by the Corporate Debtor towards tax invoices for the supply of industrial equipments/consumable products. The Operational Creditor provided detailed averments including supply details, ledger accounts, demand notices, and responses from both parties. The Corporate Debtor disputed the claim, alleging lack of requisite documents and fabricated invoices. The Tribunal considered the submissions and framed a point for consideration on the establishment of operational debt by the Operational Creditor and default by the Corporate Debtor.

Establishment of Operational Debt and Default:
The Operational Creditor presented evidence of purchase orders, delivery of goods, and outstanding payments through ledger accounts. The Corporate Debtor disputed the delivery and authenticity of documents, challenging the demand notice and signatures on delivery challans. However, the Tribunal noted that the Corporate Debtor had acknowledged the invoices and receipt of goods before disputing them after receiving the demand notice. The ledger maintained by the Operational Creditor was not disputed by the Corporate Debtor, indicating default in payment. Consequently, the Tribunal found that the operational debt and default by the Corporate Debtor were established, leading to the admission of the petition under section 9 of the Code.

Appointment of Interim Resolution Professional:
Following the establishment of operational debt and default, the Tribunal admitted the petition and declared moratorium under section 14 of the Code. Various directions were issued, including prohibiting suits against the Corporate Debtor, ensuring continuity of essential services, and appointing an Interim Resolution Professional (IRP). The Tribunal appointed a specific IRP based on compliance with relevant regulations and directed the petitioner to communicate the order to the proposed IRP. The petition was officially admitted, and the Registry was instructed to update the status of the Corporate Debtor accordingly.

This detailed analysis highlights the legal proceedings, evidentiary considerations, and the Tribunal's decision regarding the admission of the petition, establishment of operational debt, and the appointment of an Interim Resolution Professional in the context of the Insolvency and Bankruptcy Code, 2016.