9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 603 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - Amicable settlement with the Financial Creditor arrived at - HELD THAT - T he counsel appearing for the Financial Creditor invited the attention of this Tribunal to the relevant documents filed in proof of debt and default in support of above company petition. Since the Respondent/Corporate Debtor did not file any reply, the claim of the Financial Creditor remains unchallenged. The Financial Creditor successfully proved the existence of the debt and default and the debt is also within limitation. The petitioner has also suggested the name of proposed Interim Resolution Professional in part-3 of the Petition along with his consent letter in Form-2. Thus, the present Company Petition satisfies all the necessary requirements for admission. This tribunal is of the considered opinion that the above company petition is liable to be admitted - petition admitted - moratorium declared.
Issues:
Initiation of Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code. Analysis: The Company petition was filed by a Financial Creditor seeking to initiate Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor by invoking the provisions of Section 7 of the Insolvency and Bankruptcy Code. The Financial Creditor had disbursed a significant amount to the Corporate Debtor, and despite receiving some payments, a substantial sum remained outstanding, leading to the filing of the petition. The Financial Creditor provided relevant documents as proof of debt and default, which went unchallenged as the Corporate Debtor failed to file a reply or make any submissions before the Tribunal. The Tribunal noted the repeated opportunities given to the Corporate Debtor to respond, including setting them ex-parte due to non-compliance. The Financial Creditor successfully proved the existence of the debt and default, satisfying all necessary requirements for admission of the petition. The Tribunal found that the Corporate Debtor did not contest the Company Petition or comply with the orders directing them to file a reply, resulting in the forfeiture of their right to do so. The Financial Creditor's claim remained unchallenged, and the Tribunal determined that the debt was within the limitation period. The Tribunal also noted the submission of the proposed Interim Resolution Professional's name, along with their consent letter, as required by the Code. Consequently, the Tribunal concluded that the Company Petition was liable to be admitted, leading to the initiation of the Corporate Insolvency Resolution Process against the Corporate Debtor. The Tribunal issued various orders as part of the judgment, including allowing the Company Petition, appointing an Interim Resolution Professional, directing the Financial Creditor to deposit a specified amount towards CIRP costs, imposing restrictions on legal actions against the Corporate Debtor, ensuring continuity of essential supplies, and declaring a moratorium period. Additionally, the Tribunal specified the effect of the moratorium, the responsibilities of the IRP/RP during the CIRP period, and the requirement for a public announcement of the insolvency resolution process. The Registry was instructed to communicate the order to all relevant parties promptly.
|
