2022 (7) TMI 870 - 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 - time limitation - HELD THAT - The Last date of invoice is 01.02.2020 and the date of filing is 30.12.2020 and it is well within the Limitation. This Bench has jurisdiction to deal with this Company Petition. It is observed by the Bench that the Corporate Debtor had time and again by its letter, invoices and by making part payment acknowledged its liability. Therefore, the Petition made by the Operational Creditor is complete in all respects as required by law There is default by the Corporate Debtor in payment of debt amount. Therefore, it is a fit case for initiation of CIRP against the Corporate Debtor, and that the petition is filed within the limitation period. This Tribunal has jurisdiction to adjudicate the Company Petition filed by the Operational Creditor and that there is a Debt due payable by the Corporate Debtor. Therefore, the Application filed by the Operational Creditor is liable to be admitted. The application is complete and has been filed under the proper form. The debt amount is more than Rupees One Crore and default of the Corporate Debtor has been established and the application deserves to be admitted. Petition admitted - moratorium declared.

Summary

Issues:
1. Initiation of Corporate Insolvency Resolution Process under section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC).
2. Jurisdiction of the Tribunal.
3. Default in payment by the Corporate Debtor.
4. Admissibility of the application by the Operational Creditor.
5. Appointment of an Insolvency Professional.
6. Moratorium under section 14 of the IBC.
7. Management of the Corporate Debtor during the CIRP.

Analysis:
1. The Company Petition was filed under section 9 of the IBC by the Operational Creditor seeking to initiate Corporate Insolvency Resolution Process against the Corporate Debtor due to non-payment of a significant sum.
2. The Tribunal confirmed its jurisdiction to adjudicate the matter based on the incorporation details of the Corporate Debtor and the location of its registered office.
3. The Operational Creditor alleged that the Corporate Debtor failed to make payments as per the invoices raised, leading to a default of Rs.1,60,87,838/-, including interest at 18% p.a.
4. The Operational Creditor provided detailed evidence of the invoices raised, payments made, and reminders sent to the Corporate Debtor, establishing the default and the debt due.
5. The Tribunal noted the absence of a reply from the Corporate Debtor, acknowledged the liability through partial payments, and found the petition complete and within the limitation period, thus admitting the application.
6. An Insolvency Professional was appointed to conduct the Corporate Insolvency Resolution Process, with specific directions regarding the management of the Corporate Debtor and the submission of necessary documents.
7. The Tribunal imposed a moratorium under section 14 of the IBC, ensuring protection for the Corporate Debtor's assets and operations during the resolution process.

This detailed analysis of the judgment provides insights into the legal proceedings, findings, and orders issued by the Tribunal, ensuring a comprehensive understanding of the case and its implications.