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2022 (8) TMI 712 - 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 - time limitation - HELD THAT - This Bench feels that the Petitioner has successfully demonstrated the existence of debt and default committed by the Corporate Debtor in this case - Since the Corporate Debtor did not file any reply, the claim of Operational Creditor remained unchallenged. Since the date of default is on 14.06.2021, the Company Petition being filed on 22.02.2022 is well within limitation. Thus, Company Petition satisfies all legal requirements for admission - Petition admitted - moratorium declared.
Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor by an Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code. 2. Failure of the Corporate Debtor to make payments against invoices leading to a debt default. 3. Admissibility of the Company Petition filed by the Operational Creditor. Analysis of Issues: Issue 1: Initiation of CIRP The Company Petition was filed by the Operational Creditor seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for a resolution of operational debt amounting to Rs. 1,06,70,027.02. The Operational Creditor provided detailed facts regarding the transactions, delivery of goods, and subsequent default in payments by the Corporate Debtor. The Tribunal found that the Operational Creditor had fulfilled all legal requirements for admission, as the debt and default were established, and the petition was filed within the limitation period. Issue 2: Debt Default by the Corporate Debtor The Operational Creditor submitted that the Corporate Debtor failed to make payments against invoices, leading to a default in payment from 14.06.2021 onwards. Despite multiple communications and a demand notice, the Corporate Debtor did not respond or make the outstanding payments. The Tribunal noted the evidence provided by the Operational Creditor, including delivery acknowledgments and email communications, which demonstrated the default by the Corporate Debtor. Issue 3: Admissibility of the Company Petition The Tribunal observed that the Corporate Debtor did not file any reply contesting the Company Petition, despite opportunities and adjournments granted. As a result, the claim of the Operational Creditor remained unchallenged. The Tribunal, after reviewing the material on record, found that the Operational Creditor had successfully demonstrated the existence of debt and default by the Corporate Debtor. Consequently, the Company Petition was admitted, and the Tribunal ordered the initiation of CIRP against the Corporate Debtor. In conclusion, the Tribunal allowed the Company Petition, admitted the CIRP against the Corporate Debtor, appointed an Interim Resolution Professional, directed the Operational Creditor to deposit initial CIRP costs, and imposed a moratorium on legal actions against the Corporate Debtor. The Tribunal emphasized the importance of compliance with the Insolvency and Bankruptcy Code and the legal obligations of the parties involved in the resolution process.
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