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2021 (10) TMI 993 - Tri - Insolvency and BankruptcyMaintainability 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 - The Operational Creditor annexed the invoices dated 30.03.2019, 04.04.2019 and 02.05.2019 in the present application along with the Reminder Letter dated 23.07.2019 and a Reminder email dated 19.09.2019 requesting the Corporate Debtor to clear the dues. A Certificate dated 24.01.2020 Under Section 9(3)(c) of IBC, 2016 issued by the Axis Bank stating that no credits from Corporate Debtor were observed during the period from 13.07.2019 to 23.01.2020 in the account of Operational Creditor has also been filed. The Operational Creditor has clearly established the existence of debt and default on the part of the Corporate Debtor. The Corporate Debtor, on the other hand, chose neither to appear nor to contest the instant application filed under section 9 of the IB Code, 2016 - upon appreciation of the documents placed on record to substantiate the claim, this Tribunal admits this petition and initiates CIRP on the Corporate Debtor with immediate effect - Application admitted - moratorium declared.
Issues:
Application for initiation of corporate insolvency resolution process under Section 9 of the Insolvency and Bankruptcy Code 2016 based on alleged default by the Corporate Debtor in clearing a debt. Analysis: The Operational Creditor, engaged in the business of plastic articles, filed an application seeking initiation of corporate insolvency resolution process against the Corporate Debtor for non-payment of an outstanding sum of ?4,17,878 for goods supplied. The Operational Creditor provided details of transactions showing partial payments made by the Corporate Debtor but an outstanding amount remaining due. Despite repeated requests and reminders, the Corporate Debtor did not respond or clear the dues, prompting the Operational Creditor to issue a Statutory Demand Notice under section 8 of IBC, 2016. The Demand Notice was returned as 'Refused' and 'Left Without Address', indicating non-cooperation from the Corporate Debtor. The Tribunal, after fulfilling all conditions under Section 9 of the Code, issued notice to the Corporate Debtor through various modes. However, the Corporate Debtor failed to appear, leading to an ex-parte proceeding. The Operational Creditor submitted invoices, reminder letters, and a certificate from Axis Bank showing no credits from the Corporate Debtor. The Tribunal found the debt and default established by the Operational Creditor, as the Corporate Debtor did not contest the application. Consequently, the Tribunal admitted the petition and initiated the corporate insolvency resolution process against the Corporate Debtor. The Tribunal appointed an Insolvency Resolution Professional (IRP) to oversee the process, directing the Applicant to deposit a sum for immediate expenses, to be reimbursed later. A public announcement was ordered to be made by the IRP regarding the admission of the application under Section 9 of the Code. The Tribunal declared a moratorium under Section 14 of the Code, imposing restrictions on legal actions against the Corporate Debtor and asset transfers. Exceptions to the moratorium were outlined, including provisions for essential goods or services supply and sureties in contracts of guarantee. The IRP was tasked with specific functions and obligations under the Code, with the responsibility to manage the affairs of the Corporate Debtor diligently and in compliance with the law. The Tribunal directed communication of the order to relevant parties and authorities, emphasizing the obligations of all personnel associated with the Corporate Debtor to cooperate with the IRP. The Registrar of Companies was instructed to update the status of the Corporate Debtor on its website, notifying the public about the admission of the petition.
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