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2019 (4) TMI 2159 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and default or not - HELD THAT - The material documents filed by the petitioner clearly established that the Respondent failed to pay outstanding of Rs.25,13,97,045/-. The Respondent has also admitted its liability towards the Petitioner. The Petition is filed strictly in accordance with law and also suggested a qualified Resolution professional namely Mr. Ravindranath Narayana Rao is named as IRP, to appoint as IRP. Therefore, the said RP is provisionally qualified to be appointed as IRP. Hence, it is fit case to admit by initiating CIRP respect of Corporate Debtor with other consequential orders. Petition is hereby admitted by initiating Corporate Insolvency Resolution Process (CIRP) in respect of M/s. ILC Industries Limited, Corporate Debtor.
Issues involved:
The issues involved in the judgment are the initiation of Corporate Insolvency Resolution Process (CIRP) under section 9 of the Insolvency and Bankruptcy Code, 2016, for default in payment by the Corporate Debtor. Details of the judgment: Issue 1: Default in payment and initiation of CIRP The Petitioner, M/s. Elite Brilliant Limited, filed CP(IB) No. 155/BB/2018 u/s 9 of IBC, 2016 seeking to initiate CIRP against M/s. ILC Industries Limited for defaulting on payment of Rs. 25,13,97,045. The Corporate Debtor failed to deliver a large quantity of iron ore orders and did not return the advance payments made by the Operational Creditor. Despite admitting the debt, the Corporate Debtor claimed inability to repay due to bank accounts being attached by the Income Tax Department. The Corporate Debtor's Balance Sheet showed inability to pay the debt. The Respondent did not dispute the debt and default, agreeing to initiate CIRP as its liabilities exceeded assets, rendering it insolvent. Issue 2: Arguments of the parties The Operational Creditor contended that the debt and default were undisputed, and a qualified Insolvency Professional was named as Interim Resolution Professional (IRP). The Respondent did not dispute the debt and default, acknowledging its insolvency due to liabilities exceeding assets. Issue 3: Decision and Orders The Tribunal admitted CP(IB) No. 155/BB/2018, initiating CIRP against M/s. ILC Industries Limited. Mr. Ravindranath Narayana Rao was appointed as the IRP. A moratorium was declared on various actions against the Corporate Debtor, and the IRP was directed to follow all provisions of IBC, 2016. The Board of Directors and staff of the Corporate Debtor were instructed to cooperate with the IRP. The case was scheduled for a progress report on 10th May, 2019. This summary provides a detailed overview of the judgment, highlighting the issues, arguments presented by the parties, and the final decision and orders issued by the Tribunal.
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