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2020 (2) TMI 51 - Tri - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - Corporate Debtor defaulted in making repayment - existence of debt and default or not - HELD THAT - In compliance of Section 9(3)(c) that no payment of an unpaid operational debt has been made, a statement of Bank account also seen produced on the side of the Corporate Debtor by way of filing supplementary affidavit dated 15-01-2019. So also, the Operational Creditor has proposed the name of Interim Resolution Professional, Mr. Ajay Kumar Agarwal, Insolvency Professional, a reference to Form 2 and written communication enabling us to hold that there is no disciplinary proceeding pending against the proposed Interim Resolution Professional - Accordingly, we are satisfied that the Operational Creditor has succeeded in proving the default of an unpaid operational debt by the Corporate Debtor and complied of all the requirements to be meted out under Section 9(5) of the Code. Application admitted - moratorium declared.
Issues:
Application under Section 9 of the Insolvency & Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution process due to default in payment of operational debt. Analysis: The Operational Creditor filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 against the Corporate Debtor, alleging default in payment of operational debt amounting to ?10,43,045. The Operational Creditor supplied de-oiled rice bran to the Corporate Debtor, and despite several demands, the Corporate Debtor failed to make payments. The Operational Creditor issued a demand notice under Section 8(1) of the Code, which was duly received by the Corporate Debtor. The total outstanding amount due, including interest, was ?10,43,045 as of the application filing date. The Operational Creditor proposed the name of an Interim Resolution Professional, Mr. Ajay Kumar Agarwal, for the resolution process. The Corporate Debtor failed to file a reply affidavit despite opportunities given, and no one appeared on their behalf during the final hearing. The Operational Creditor produced invoices and a demand notice to substantiate the claim. The Tribunal found that the Operational Creditor had proven an operational debt of ?7,83,228 due from the Corporate Debtor. However, the claim for interest at 12% per annum was not supported by sufficient evidence of a contractual agreement. The Tribunal noted that the demand notice was properly delivered to the Corporate Debtor, who did not reply or dispute the debt. The Operational Creditor fulfilled the requirements under Section 9(3)(b) and (c) of the Code. The Tribunal concluded that the Operational Creditor had successfully proven the default of the unpaid operational debt by the Corporate Debtor and complied with all necessary provisions under Section 9(5) of the Code. The Tribunal allowed the application under Section 9 of the Code, admitting it for initiating the Corporate Insolvency Resolution Process against the Corporate Debtor. Moratorium was declared, prohibiting certain actions against the Corporate Debtor's assets. An Interim Resolution Professional was appointed to manage the resolution process. The Operational Creditor was directed to deposit a specified amount in an ESCROW Account for meeting initial expenses. The Registry was instructed to communicate the order to all relevant parties, and a progress report filing date was set. In conclusion, the Tribunal admitted the application, declared a moratorium, appointed an Interim Resolution Professional, and issued directions for further proceedings in the Corporate Insolvency Resolution Process.
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