2019 (7) TMI 685 - Tri - Insolvency and Bankruptcy

Admissibility of petition - initiation of Corporate Insolvency Resolution Process - default in repayment of debt - HELD THAT - There is a clear default on the part of the Corporate Debtor in making payment against the goods supplied by the Petitioner, and there is no existing dispute regarding the same. The petition filed under Section 9 of I B Code, 2016 is admitted - Moratorium declared.

Summary

Issues:
Petition under section 9 of Insolvency & Bankruptcy Code, 2016 for default in payment by Corporate Debtor.

Detailed Analysis:

1. Petition Filing and Background:
The petition was filed under section 9 of the Insolvency & Bankruptcy Code, 2016 by the Operational Creditor against the Corporate Debtor for default in payment. The Operational Creditor, a manufacturer of Rubber & Plastic Products, supplied goods to the Corporate Debtor under pre-printed excise invoices, with a total default amount of &8377;29,63,242/- along with interest. The Operational Creditor submitted necessary forms and certificates to support the claim.

2. Demand Notice and No Dispute Raised:
A Demand Notice was issued to the Corporate Debtor under section 8 of the I&B Code, demanding the outstanding payment. The Corporate Debtor neither replied to the notice nor made the payment within the stipulated time. An affidavit stating no dispute was raised by the Corporate Debtor was annexed to the petition.

3. Evidence and Substantiation of Claim:
The Operational Creditor provided bank statements and a bank certificate confirming non-receipt of payment. The claim was supported by signed invoices, ledger accounts, and other relevant documents. The Operational Creditor demonstrated that no complaints were raised by the Corporate Debtor regarding the supplied goods.

4. Non-Appearance and Default by Corporate Debtor:
Despite service of notices and emails, the Corporate Debtor did not respond or appear before the Bench. No objections were filed against the petition. The Bench found a clear default on the part of the Corporate Debtor in making payments, with no existing dispute.

5. Admission of Petition and Moratorium Order:
The Bench admitted the petition under Section 9 of the I&B Code and declared a moratorium under section 14. The moratorium included prohibitions on legal actions against the Corporate Debtor, asset transfers, recovery of property, and specified directives for essential supplies. An Interim Resolution Professional was appointed, and the moratorium was to remain in effect until the completion of the insolvency resolution process.

6. Concluding Orders and Communication:
The Bench directed immediate communication of the order to the Operational Creditor, Corporate Debtor, and the appointed Interim Resolution Professional. The resolution professional's fee was to comply with relevant regulations and circulars.

This detailed analysis of the judgment highlights the legal proceedings, evidence presented, non-appearance of the Corporate Debtor, admission of the petition, moratorium declaration, and appointment of an Interim Resolution Professional, ensuring a comprehensive understanding of the case.