2021 (4) TMI 892 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - HELD THAT - It is apparent on record that this Corporate Applicant had defaulted in making payments to Aesys S.P.A. Italy. In this case, the Corporate Applicant namely, M/s. Aesys Technologies India Private Limited has made a submission stating that they would like to recommend an IRP to take over the management of the affairs of the Corporate Applicant Company. This Company application is required to be admitted u/s 10 of the Code - Application admitted.

Summary

Issues:
Insolvency & Bankruptcy Application under Section 10 of the Insolvency & Bankruptcy Code, 2016 for initiation of Corporate Insolvency Resolution Process due to default in financial obligations to Operational Creditor.

Detailed Analysis:

Issue 1: Insolvency Application Filing
The Corporate Applicant, M/s. Aesys Technologies Private Limited, filed an Insolvency & Bankruptcy Application under Section 10 of the Code due to default in meeting financial obligations to its Operational Creditor, Aesys S.P.A., Italy. The default amount of ?1,39,12,542 was specified, and the Chartered Accountant certified no outstanding financial creditors as of a certain date.

Issue 2: Compliance and Documentation
The Corporate Applicant submitted various documents, including written communication by the Insolvency Professional, audited financial statements, and details on Income Tax Returns, Provident Fund, ESI, and GST Registration. The company also passed a special resolution for initiating Corporate Insolvency Resolution process and provided Memorandum of Association and Articles of Association.

Issue 3: Appointment of Interim Resolution Professional
The Bench found the default in payments to the Operational Creditor and appointed Mr. T. Sivagurunathan as the Interim Resolution Professional (IRP) with specific directions. The order declared a moratorium on certain actions, ensured continuity of essential goods or services supply, and specified the effect of moratorium until the completion of the resolution process.

Issue 4: Further Directives
The order directed the IRP to carry out functions as per the IBC, specified the fee payable to the IRP/RP, and mandated the immediate public announcement of the corporate insolvency resolution process. The application was admitted, and the Registry was directed to communicate the order to the Corporate Applicant and the IRP promptly.

This detailed analysis outlines the key aspects of the judgment, including the filing of the insolvency application, compliance with documentation requirements, appointment of the IRP, specific directives issued by the Bench, and further instructions for the resolution process.