9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 778 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repaymnet of its dues - Operational creditors - existence of debt and dispute or not - HELD THAT - It has been shown that the Corporate Debtor has failed to make payment of the aforesaid amount due to date as mentioned in the statutory notice. It is also observed that the conditions under Section 9 of the Code stand satisfied. Hence, this Adjudicating Authority is inclined to commence CIRP against the Corporate Debtor as envisaged under IBC, 2016. Application admitted - moratorium declared.
Issues:
Initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016 based on alleged default in payment of operational dues by the Corporate Debtor. Analysis: 1. Application and Alleged Default: - The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor for non-payment of operational dues amounting to Rs. 1,18,85,081/-. - The Applicant provided details of the debt due, the total outstanding principal amount, and compound interest in the application, highlighting the continuous default since 04.03.2019. 2. Jurisdiction and Background of Corporate Debtor: - The Corporate Debtor, a Private Limited Company incorporated under the Companies Act, 1956, is registered in Jaipur, Rajasthan. - The Applicant sold iron scrap to the Corporate Debtor on a running account basis, with the principal amount due being Rs. 42,67,140/-. 3. Demand Notice and Response: - The Applicant issued a Demand Notice under Section 8 of the Code for payment of the outstanding amount with interest at 21% per annum. - The Respondent, through its lone director, cited the suspension of business activities due to the director's demise and lack of knowledge about financial transactions. 4. Decision and Appointment of Interim Resolution Professional: - The Adjudicating Authority found the conditions under Section 9 of the Code satisfied and decided to commence CIRP against the Corporate Debtor. - The Operational Creditor proposed Mr. Arun Chadha as the Interim Resolution Professional, who consented to act and was appointed to oversee the proceedings. 5. Consequences of CIRP Commencement: - The IRP was directed to take over the affairs of the Corporate Debtor, issue a publication for creditors' claims, and manage the CIRP as per specified timelines. - A moratorium under Section 14 of the Code was invoked, and the IRP's expenses were to be deposited by the Applicant, to be reimbursed later from the Committee of Creditors' formation. 6. Operational Instructions and Compliance: - The IRP was instructed to follow the provisions of the Code diligently, with suspended powers of Corporate Debtor personnel, and management vested in the IRP during the CIRP. - Communication of the order to all relevant parties, including the IRP, Corporate Debtor, and IBBI, was mandated within a week for further action and record-keeping. 7. Conclusion and Compliance: - The order for the commencement of CIRP was communicated, and parties were directed to serve copies to the IRP for information. - The Registry was instructed to provide a soft copy of the application and order to the nominated IRP promptly, marking the admission of the case. This detailed analysis summarizes the legal judgment involving the initiation of Corporate Insolvency Resolution Process against the Corporate Debtor based on the alleged default in payment of operational dues, highlighting key aspects of the application, response, decision, and procedural steps to be followed during the CIRP.
|
