2022 (5) TMI 656 - 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 - Service of notice - HELD THAT - It is seen from the records that notice of default under Section 8 has been delivered and affidavit under Section 9(3)(b) of IBC has also been filed. The last payment was made on 15th October, 2018 and this application has been filed on 23.07.2019, the application is found well within the limitation in terms of provisions of Section 19 of the Limitation Act, 1963 - It is further noted that the corporate debtor in the emails dated 10.10.2018 and 20.09.2018 has also admitted that the amount is due and further pleas raised in reply filed by the corporate debtor is found not to be substantiated by any documents, thus there are no merit in the contentions raised by the counsel for the corporate debtor. It is noted that the application filed under section 9 is complete and complies with the requirements of the relevant provisions of the Code - application admitted - moratorium declared.

Summary

Issues Involved:
Initiation of Corporate Insolvency Resolution Process under Section 9 of IBC against a Corporate Debtor.

Detailed Analysis:

1. Application by Operational Creditor:
The Operational Creditor, Leoch Batteries Private Limited, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 against the Corporate Debtor, NPS Power Solutions Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was supported by invoices showing an outstanding amount of ?1,29,42,045 due and payable by the Corporate Debtor.

2. Arguments by Operational Creditor:
The Operational Creditor's counsel presented evidence of the debt, including balance confirmation letters, emails acknowledging the due amount, ledger accounts, and bank statements. The counsel argued that the application was within the limitation period as the last payment was made on 15.10.2018, and the application was filed on 16.01.2020.

3. Arguments by Corporate Debtor:
The Corporate Debtor contended that there were disputes regarding the goods provided and payments made to the Operational Creditor, denying any debt or default on their part.

4. Findings & Conclusion:
The Tribunal considered the submissions and evidence provided. It noted that the notice of default under Section 8 had been delivered, and the affidavit under Section 9(3)(b) of IBC was filed. The application was found to be within the limitation period. The Corporate Debtor's contentions were deemed unsubstantiated, and the application under Section 9 was found to be complete and compliant with the relevant provisions of the Code.

5. Orders Passed:
The Tribunal admitted the Operational Creditor's application for initiating CIRP against the Corporate Debtor. A moratorium under Section 14 of IBC was imposed. An Interim Resolution Professional (IRP) was appointed, and the management of the Corporate Debtor vested in the IRP during the CIRP period. The Operational Creditor was directed to deposit a sum for expenses, and various reporting and compliance requirements were outlined. The matter was listed for a progress report, and certified copies of the order were to be issued to concerned parties upon application.

This detailed analysis of the judgment provides a comprehensive overview of the legal proceedings and the Tribunal's decision regarding the initiation of the Corporate Insolvency Resolution Process.