2017 (5) TMI 1836 - Tri - IBC

Refund of the amount paid towards purchase of the Holiday Plan Certificate from the Company - Operational Debt or not - HELD THAT - As per the provisions of Section 9(1) of the Code after the expiry of the period of 10 days from the date of delivery of the Demand Notice if the Operational Creditor does not receive payment from the Corporate Debtor and there is no Notice of Dispute then the Adjudicating Authority shall initiate Corporate Insolvency Resolution Process - That Section 9(4) prescribes initiation of Corporate Insolvency Resolution by proposing name of Insolvency Professional. In this case the Petitioner has proposed Mr. Devendra Padamchand Jain A-43 Prime Plaza Opp. DLA School Bodakdev Ahmedabad Mobile No. 9712154455 IP Registration No. IBBI/IPA- 001/IP-00224/2016-17/1511 dated 13th January 2017. He has accepted the proposal and affirmed that there is no Disciplinary Proceedings pending against him. Once the process has been initiated the provisions of Moratorium as prescribed under Section 14 of the Code shall be operative henceforth with effect from 02.05.2017 shall be applicable by prohibiting institution of any Suit before a Court of Law transferring/encumbering any of the assets of the Debtor etc. However the supply of essential goods or services to the Corporate Debtor shall not be terminated during Moratorium period. It shall be effective till completion of the Insolvency Resolution Process or until the approval of the Resolution Plan prescribed under Section 31 of the Code - That as prescribed under Section 13 of the Code on declaration of Moratorium the next step of Public Announcement of the Initiation of Corporate Insolvency Resolution Process shall be carried out by the Petitioner immediately as specified. Conclusion - Moratorium under Section 14 is declared effective from 02.05.2017 prohibiting legal actions and asset transfers but not affecting essential services to the Debtor. The Petition is Admitted and disposed of.

Summary

The National Company Law Tribunal, Mumbai, adjudicated a petition filed by the Petitioner, an "Operational Creditor," under the Insolvency and Bankruptcy Code, 2016, against M/s. Royal Twinkle Star Club Limited, the "Corporate Debtor." The Petitioner claimed a default on a debt of Rs.1,09,516/- related to a Holiday Plan Certificate, acknowledged by the Debtor on 01.04.2017. The Tribunal noted that the debt qualifies as "Operational Debt" under Sections 8 and 9 of the Code, with no "Notice of Dispute" raised by the Respondent.Upon expiry of the 10-day period without payment or dispute notice, the Tribunal initiated the Corporate Insolvency Resolution Process (CIRP) as per Section 9(1). The Petitioner proposed Mr. Devendra Padamchand Jain as the Insolvency Professional, who accepted the role with no pending disciplinary proceedings. Consequently, a "Moratorium" under Section 14 was declared effective from 02.05.2017, prohibiting legal actions and asset transfers, but not affecting essential services to the Debtor. The Petitioner is directed to make a public announcement of the CIRP initiation as per Section 13. The Interim Resolution Professional must report progress by 21st July 2017. The Petition was "Admitted" and disposed of accordingly.