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2022 (10) TMI 323 - Tri - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - HELD THAT - After perusing the Application, it is directed that Corporate Applicant to issue notices to all Unsecured Creditors and Statutory Authorities i.e. Income Tax, Commercial Tax, Provident Fund and other Authorities vide order of this Adjudicating Authority dated 23.12.2021. Accordingly, notices were sent to unsecured creditors as well as statutory authorities on 04.01.2022. However, there was no objection from any of the stakeholders as mentioned above. It was also brought to our notice that Corporate Applicant has no secured creditors which was supported vide Certificate issued by Chartered Accountant dated 29.06.2019. The Corporate Applicant started facing heavy losses which resulted in non-fulfilment of their commitments and failed to meet its operational expenses which led to heavy debts which they are not able to meet - there was no objection from any of the stakeholders for the prayer made by the Corporate Applicant. Petition admitted - moratorium declared.
Issues Involved:
- Application filed under Section 10 of Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process. - Default in paying debt to Financial and Operational Creditors. - Corporate Applicant's business operations and financial status. - Compliance with provisions of IBC, 2016. - Appointment of Interim Resolution Professional. - Adjudicating Authority's decision on admitting the application. Analysis: 1. Application for Corporate Insolvency Resolution Process: The Corporate Applicant filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, stating a default in paying debts to Financial and Operational Creditors amounting to Rs. 1,32,10,445. The application detailed the company's business activities related to online medical services and its financial position. 2. Compliance with IBC Provisions: The Corporate Applicant complied with Section 10(3) requirements of the IBC, 2016, by submitting financial statements, appointing an Interim Resolution Professional, and obtaining shareholder approval for initiating the Corporate Insolvency Resolution Process. The application also addressed the absence of secured creditors and the notification to various creditors and statutory authorities. 3. Financial Status and Operational Challenges: The Corporate Applicant faced financial constraints leading to irregular accounting practices and significant debts. The company encountered operational challenges affecting its financial stability, resulting in heavy losses and the inability to meet commitments and operational expenses. These factors contributed to the decision to seek initiation of the Corporate Insolvency Resolution Process. 4. Adjudicating Authority's Decision: After reviewing the application and considering the submissions, the Adjudicating Authority found merit in the Corporate Applicant's reasons for initiating the Corporate Insolvency Resolution Process. The Authority noted the absence of objections from stakeholders and the challenges faced by the company. Consequently, the Authority admitted the application under Section 10 of the IBC, 2016. 5. Appointment of Interim Resolution Professional: The Authority appointed Mr. Anjaneyulu Sadhu as the Interim Resolution Professional to oversee the Corporate Insolvency Resolution Process. Specific directions were issued regarding the moratorium, essential goods and services supply, and public announcement requirements. The Authority ensured compliance with the legal procedures and notified relevant authorities about the decision. In conclusion, the National Company Law Tribunal, Hyderabad Bench, admitted the application for Corporate Insolvency Resolution Process filed by the Corporate Applicant, considering the financial difficulties, operational challenges, and compliance with the provisions of the Insolvency and Bankruptcy Code, 2016. The appointment of an Interim Resolution Professional and the issuance of necessary directions demonstrate the thorough assessment and decision-making process by the Adjudicating Authority.
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