2020 (2) TMI 50 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its debt - existence of debt and dispute or not - section 9 of Insolvency and Bankruptcy Code, 2016 - HELD THAT - The present application is complete and the Applicant is entitled to claim its dues, which remain uncontroverted by the Corporate Debtor, establishing the default in payment of the operational debt beyond doubt. The present application is admitted, in terms of section 9 (5) of IBC, 2016. Application admitted - moratorium declared.

Summary

Issues: Application under Section 9 of IBC for Corporate Insolvency against a Private Limited Company.

Analysis:
1. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency process against a Private Limited Company, the Corporate Debtor.
2. The Applicant, a legal service provider, had provided services to the Corporate Debtor and claimed an outstanding amount of ?1,75,000, which remained unpaid despite repeated reminders.
3. A demand notice was issued under Section 8 of the IBC, and the application was filed on 12.03.2019, serving the Corporate Debtor through speed post and email.
4. The Corporate Debtor did not respond or appear before the Tribunal, leading to an ex-parte proceeding.
5. The Tribunal found the application complete and admitted it, as the debt was not time-barred and the Applicant's claim remained uncontested by the Corporate Debtor.
6. An Interim Resolution Professional was appointed from the list provided by the Insolvency and Bankruptcy Board of India, subject to certain conditions and disclosures.
7. The Operational Creditor was directed to deposit ?1 lakh with the Interim Resolution Professional to cover expenses, which would be adjusted by the Committee of Creditors and refunded if necessary.
8. The admission of the application triggered a moratorium under Section 14(1) of the Code, with specific provisions coming into force during this period.
9. The order was communicated to the Applicant, Corporate Debtor, and appointed IRP, with copies sent to the IBBI and ROC for necessary actions and compliance reporting.

This detailed analysis of the judgment highlights the legal proceedings and outcomes of the application under Section 9 of the IBC for Corporate Insolvency against the Private Limited Company, covering all relevant aspects of the case.