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2017 (10) TMI 90 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - Insolvency and Bankruptcy Code, 2016 (I&B Code) - fulfillment of necessary procedures by Operational Creditor - Held that - The Operational Creditor has fulfilled all the requirements of law and has also proposed the name of IRP after obtaining the written consent in Form-2. We are satisfied that Corporate Debtor committed default in making payment of the outstanding debt. Therefore, TCP/385/(IB)/CB/2017 is admitted and we order the commencement of the Corporate Insolvency Resolution Process which ordinarily shall get completed within 180 days, reckoning from the day this order is passed. We appoint Mr. R. Krishnamurthy, as IRP as proposed by the Operational Creditor. There is no disciplinary proceedings pending against the IRP as evidenced from Form-2 and his name is reflected in IBBI website. The IRP is directed to take charge of the Corporate Debtor s management immediately. He is also directed to cause public announcement as prescribed under Section 15 of the I&B Code, 2016 within three days from the date the copy of this order is received, and call for submissions of claim in the manner as prescribed. We declare the moratorium which shall have effect from the date of this Order till the completion of corporate insolvency resolution process, for the purposes referred to in Section 14 of the I&B Code, 2016
Issues:
Admission of application for Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. Analysis: The judgment pertains to CP No. 287/2016 filed by the Operational Creditor before the High Court of Madras, subsequently transferred to the National Company Law Tribunal, Chennai. The prayer sought was to admit the application and initiate the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, by appointing an Interim Resolution Professional (IRP). The Operational Creditor had complied with the requirements under Section 9(3)(b) and (c) of the I&B Code, 2016. However, the Affidavit submitted initially was not in compliance with Section 9(3)(b) of the Code, leading to a grant of time to rectify the defect. The Operational Creditor rectified the defect in the Affidavit, stating that no notice had been given by the Corporate Debtor regarding the dispute of the unpaid operational debt. The Operational Creditor also submitted the Bank statement as per Section 9(3)(c) of the Code. A statutory notice was issued to the Corporate Debtor demanding payment, to which the Corporate Debtor replied admitting the outstanding amount. The Operational Creditor claimed non-payment against four invoices, totaling ?16,18,417. Despite efforts to reconcile the outstanding debt, the Corporate Debtor failed to appear, leading to being proceeded ex parte. The Tribunal, after hearing the Counsel for the Operational Creditor and reviewing the records, found that the Operational Creditor had fulfilled all legal requirements and established the default in payment by the Corporate Debtor. Consequently, the application was admitted, and the Corporate Insolvency Resolution Process was initiated. The Tribunal ordered the process to be completed within 180 days from the date of the order. Mr. R. Krishnamurthy was appointed as the IRP, with no pending disciplinary proceedings against him. The IRP was directed to take immediate charge of the Corporate Debtor's management, make a public announcement, and call for submissions of claims within three days. A moratorium was declared from the date of the order until the completion of the resolution process, prohibiting various actions against the Corporate Debtor's assets. Essential goods or services supply to the Corporate Debtor was protected during the moratorium. The IRP was mandated to comply with specific sections of the Code, with directors and associated persons expected to cooperate. The judgment concluded by directing the necessary parties to comply with the orders and communicate the decision to all relevant parties. This detailed analysis of the judgment highlights the procedural aspects, compliance requirements, default by the Corporate Debtor, appointment of the IRP, moratorium declaration, and obligations of the parties involved in the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016.
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