9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 183 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - alleged default on the part of the CD to make repayment of dues - Operational Creditors - existence of debt and dispute or not - HELD THAT - Corporate Debtor in reply to the application has admitted that OC had rendered office management service and has not raised any dispute to the outstanding dues to OC. Further, CD has admitted that it had suffered huge losses and hence was unable to make arrangements for the payment of the demand. The applicant has placed sufficient evidence in support of its claim. Thus, the OC has clearly established the existence of debt and default on the part of the CD. The petition is within the limitation period. The present application is admitted initiating CIRP on the CD, with immediate effect - application admitted - moratorium declared.
Issues:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor (CD) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by an Operational Creditor (OC) for alleged default in settling the amount. 2. Compliance with the provisions of Sections 8 and 9 of the IBC regarding the issuance of demand notice and filing of the application for CIRP. 3. Appointment of an Interim Resolution Professional (IRP) and declaration of moratorium under Sections 13 and 14 of the IBC. Issue 1: The Operational Creditor (OC) filed a petition seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor (CD) for defaulting on payment of an amount, including CGST and SGST towards Office Management Charges. The CD admitted to receiving services from the OC and the outstanding dues but cited business losses as the reason for non-payment. The CD did not dispute the debt or raise any objections to the claim. The Tribunal found that the OC had established the existence of debt and default, and the petition was within the limitation period. Therefore, the application for CIRP was admitted, initiating the process on the CD immediately. Issue 2: The Tribunal referred to Sections 8 and 9 of the IBC, which outline the process for initiating CIRP by an operational creditor. The CD had acknowledged receiving the demand notice under Section 8 of the IBC but failed to make the payment, citing business losses. The Tribunal noted that the OC had provided sufficient evidence to support the claim, and the CD did not raise any dispute regarding the outstanding dues. Based on these facts, the Tribunal concluded that the OC had met the requirements for initiating CIRP under Sections 8 and 9 of the IBC. Issue 3: The Tribunal appointed an Interim Resolution Professional (IRP) as proposed by the OC and directed the IRP to undertake necessary steps as per the provisions of the IBC. A moratorium was declared under Section 14 of the IBC, imposing restrictions on legal actions against the CD and asset transfers. Essential supplies to the CD were to continue during the moratorium period. The IRP was tasked with fulfilling obligations under various sections of the IBC and conducting proceedings diligently. The OC was directed to deposit a fee for the IRP's immediate expenses, to be reimbursed by the Committee of Creditors (CoC) as part of the CIRP cost. The Registry was instructed to communicate the order to relevant parties promptly. In conclusion, the Tribunal admitted the application for CIRP, appointed an IRP, declared a moratorium, and issued necessary directions to ensure the effective resolution of the insolvency process in accordance with the provisions of the IBC.
|
