2019 (10) TMI 802 - Tri - Insolvency and Bankruptcy

Admissibility of application - initiation of CIRP - Corporate Debtor - default in making payment of the outstanding debt - HELD THAT - The Operational Creditor has complied with Section 9 (3) (b) (c) of the I B Code, 2016, by filing Affidavit, wherein under Para 4, it has been deposed that the Corporate Debtor has not given any notice of dispute or a pendency of a suit or arbitration proceedings in relation to the unpaid of operational debt. The Operational Creditor has fulfilled all the requirements of law for admission of the Application. This Authority is satisfied that the Corporate Debtor has committed default in making payment of the outstanding debt claimed by the Operational Creditor. Therefore, Application is admitted and the commencement of the Corporate Insolvency Resolution Process is ordered, which ordinarily shall get completed within 180 days, reckoning from the day this order is passed. Application admitted - moratorium declared.

Issues Involved:
Admission of application under Section 9 of I&B Code, 2016 for Corporate Insolvency Resolution Process, declaration of moratorium, appointment of Interim Resolution Professional (IRP).

Analysis:
1. The Operational Creditor filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 seeking admission to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor, declare moratorium, and appoint an Interim Resolution Professional (IRP).
2. The Corporate Debtor was proceeded ex-parte as per the record, and after hearing the Counsel for the Operational Creditor and examining the pleadings and documents, the Tribunal proceeded with the case.
3. The Operational Creditor claimed an amount of ?14,47,135/- as principal along with interest at 24% per annum from a specific date as per the Power Purchase Agreement.
4. The case involved a Power Purchase Agreement between the Operational Creditor and the Corporate Debtor for the supply of power, with specific terms regarding quantity, price, and payment conditions.
5. The Agreement specified the purchase price of power by the Corporate Debtor at a set rate per unit, including miscellaneous charges.
6. The Agreement also outlined the provision for interest calculation in case of delayed payment by the Corporate Debtor.
7. Despite supplying power and raising an invoice for the amount claimed, the Corporate Debtor failed to make any payment to the Operational Creditor.
8. A Demand Notice was issued under Section 8 of the I&B Code, 2016 to the Corporate Debtor, which remained unanswered, indicating the default in payment.
9. The Operational Creditor complied with the necessary requirements under the I&B Code, 2016, including filing an Affidavit confirming the absence of dispute or pending proceedings related to the operational debt.
10. The Tribunal found the default in payment by the Corporate Debtor, admitted the application, and ordered the commencement of the Corporate Insolvency Resolution Process within a stipulated timeframe.
11. A moratorium was declared from the date of the order till the completion of the Resolution Process, prohibiting various actions against the Corporate Debtor as per Section 14 of the I&B Code, 2016.
12. Essential goods or services supply to the Corporate Debtor was protected during the moratorium period, subject to government notifications.
13. An Interim Resolution Professional (IRP) was appointed to manage the Corporate Debtor, with specific directions for public announcement, claim submissions, and compliance with relevant sections of the I&B Code, 2016.
14. The directors, promoters, and management associates of the Corporate Debtor were directed to cooperate with the IRP as required by the Code.
15. Instructions were issued to the Operational Creditor, Corporate Debtor, and concerned authorities to comply with the order and facilitate the IRP's takeover of assets.
16. The Registry was directed to communicate the order to all relevant parties and provide the necessary details of the appointed IRP for further actions.

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