2020 (4) TMI 553 - 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 - HELD THAT - The claim as made by the Operational Creditor is within the prescribed period of limitation of 3 years. The claim amount as made in the Application is also in excess of ₹ 1,00,000/- being the statutory minimum amount fixed under section 4 of the I B Code, 2016 for approaching this Tribunal by the creditors, in the instant case by Operational Creditor and further in relation to the Corporate Debtor the registered office of which is situated within the State of Tamilnadu, amenable to its territorial jurisdiction, this Authority deem it fit to admit the instant Application and to initiate the Corporate Insolvency Resolution Process (CIRP) as against the Corporate Debtor. The Application as filed by the Operational Creditor is required to be admitted under section 9(5) of the IBC, 2016 - application admitted - moratorium declared.

Summary

Issues:
Application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 by Operational Creditor against Corporate Debtor for admission, initiation of Corporate Insolvency Resolution Process, declaration of moratorium, and appointment of Interim Resolution Professional.

Analysis:
1. The Application was filed under section 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor against the Corporate Debtor, seeking admission, initiation of Corporate Insolvency Resolution Process, declaration of moratorium, and appointment of an Interim Resolution Professional. The Operational Creditor, a Private Limited Company, claimed an operational debt of ?2,74,86,933 arising from airtime advertisement services provided to the Corporate Debtor for the brand 'Abirami Rice.'

2. The Corporate Debtor did not dispute the claim, and despite efforts to settle with the Operational Creditor, no resolution was reached. The Operational Creditor issued a Notice of Termination due to non-payment, followed by a Demand Notice under section 8 of the I&B Code, 2016. The Corporate Debtor did not respond to the notices, indicating admission of the claim.

3. The Operational Creditor submitted documents supporting the claim, including bills and agreements specifying payment terms. The claim was within the limitation period and exceeded the statutory minimum amount required for approaching the Tribunal. Therefore, the Tribunal deemed it fit to admit the Application and initiate the Corporate Insolvency Resolution Process against the Corporate Debtor.

4. As the Operational Creditor did not propose an Interim Resolution Professional, the Tribunal appointed Ms. Srividhya Subramanian as the Interim Resolution Professional. The moratorium under section 14(1) of the IBC, 2016 was imposed on the Corporate Debtor, restricting certain actions like instituting suits, transferring assets, or foreclosing security interests.

5. The moratorium period specified in section 14(4) of the Code would remain in effect until the completion of the Corporate Insolvency Resolution Process, subject to approval of a Resolution Plan or liquidation order by the Adjudicating Authority. The Operational Creditor was directed to pay ?2,00,000 to the Interim Resolution Professional for expenses, as per the Code's regulations.

6. The Tribunal's Order was communicated to the Operational Creditor, Corporate Debtor, and the Insolvency and Bankruptcy Board of India (IBBI). The Interim Resolution Professional was tasked with informing the Registrar of Companies about the initiation of the Corporate Insolvency Resolution Process for the Corporate Debtor.