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2020 (1) TMI 1077 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to repay its debt - pre-existing dispute or not - Time Limitation. Whether the present partition is time-barred or not? - HELD THAT - It is observed that the Operational Creditor at all times maintained the books of account and ledger showing the balance payment of ₹ 12,02,527/- as due and payable at the end of each financial year. That subsequent to the payment of ₹ 100000/- received on 12.2.2018, the balance due was reduced to ₹ 11,02,527/- which is the amount presently due, along with the interest. Further Corporate Debtor specifically admits in para 3 that the project and the works remain incomplete but not denied or raised any demure regarding the factum of the payment made on 12.2.2018. Is there any pre-existing dispute? - HELD THAT - It is observed that Corporate Debtor nowhere in its reply ever mentioned about the defect in quality of goods or any other dispute regarding the same to the Operational Creditor. Application admitted - moratorium declared.
Issues:
- Whether the present petition is time-barred? - Is there any pre-existing dispute? Analysis: 1. The petition filed by M/S. Earthcon Promoters Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, against the Respondent, Shyam Digital Communications Private Limited, sought to initiate Corporate Insolvency Resolution Process (CIRP) due to outstanding dues. 2. The Applicant detailed the timeline of events, including communication, meetings, work completion, billing, and payment disputes, leading to the outstanding amount of ?11,02,527 as per the Operational Creditor's claim. 3. The Corporate Debtor's written submissions contested the petition, alleging unsatisfactory work by the Operational Creditor, and raised the defense of the application being time-barred under the Limitation Act, 1963. 4. The issues to be decided revolved around the timeliness of the petition and the existence of any pre-existing disputes. The Operational Creditor maintained records of the outstanding amount, while the Corporate Debtor did not raise any specific disputes regarding the payment. 5. The Tribunal found in favor of admitting the application, noting the lack of denial regarding the outstanding amount and the absence of pre-existing disputes raised by the Corporate Debtor. 6. Consequently, the Tribunal initiated the CIRP process against the Respondent, appointing an Interim Resolution Professional subject to certain conditions, and imposed a moratorium as per Section 14(1) of the Code, restricting various actions against the Respondent's assets. 7. The moratorium period specified under Section 14(4) would remain in effect until the completion of the corporate insolvency resolution process, with provisions for essential goods or services to be maintained during this period. 8. The Tribunal's decision to admit the application, impose the moratorium, and communicate the order to the relevant parties and authorities signified the initiation of the insolvency resolution process, aiming to address the outstanding debt and resolve the financial dispute between the parties involved.
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