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2022 (5) TMI 871 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditor - existence of debt and dispute or not - HELD THAT - It is noted that the Operational Creditor supplied the goods to the Corporate Debtor as per the purchase order placed by the Corporate Debtor, and raised the four invoices dated 15.04.2021 for the amount of Rs. 1,49,20,054/-. The Corporate Debtor acknowledged the aforesaid outstanding amount vide letter dated 18.08.2021. The demand notice dated 08.09.2021 was issued to the Corporate Debtor by the Operational Creditor and the same was delivered on 13.09.2021. However, the Corporate Debtor neither paid the outstanding amount nor replied to the said demand notice. Moreover, the Corporate Debtor has admitted the aforesaid outstanding amount in its reply to the application dated 24.12.2021. Instant application is otherwise complete as per the provisions of section 9 (5) of the IB Code and meets the threshold limit as prescribed under Section 4 of the IB Code - The date of default is 25.04.2021 as per part IV of form V, and application is filed on 02.12.2021 hence the application is within limitation and not barred by law. Petition admitted - moratorium declared.
Issues:
Initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016 against a Corporate Debtor for default in payment. Analysis: 1. The Operational Creditor, in this case, filed a company application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor for the default amount of Rs. 1,49,20,054/-. 2. The Operational Creditor supplied goods to the Corporate Debtor as per a purchase order and raised invoices for the same. Despite multiple reminders, the Corporate Debtor failed to pay the outstanding amount, citing financial constraints due to Covid-19. 3. A statutory demand notice was issued under Section 8 of the IB Code, which the Corporate Debtor did not respond to. The Corporate Debtor later admitted the outstanding amount but mentioned financial difficulties and NPA classification by the bank. 4. The Tribunal found the application complete as per the provisions of the IB Code, meeting the threshold limit. The application was filed within the limitation period, and the date of default was established. 5. Consequently, the Tribunal admitted the application under Section 9 (5) (a) of the IB Code and declared a moratorium under Section 14(1) of the Code, prohibiting various actions against the Corporate Debtor. 6. The moratorium will be in effect until the completion of the Corporate Insolvency Resolution Process or until a Resolution Plan is approved or liquidation is ordered. An Interim Resolution Professional (IRP) was appointed to manage the affairs of the Corporate Debtor. 7. The IRP is mandated to make a public announcement of the initiation of the Corporate Insolvency Resolution Process, call for submission of claims, and manage the operations of the Corporate Debtor as a going concern. 8. The Applicant was directed to deposit a sum with the IRP to cover expenses. The IRP is obligated to protect and preserve the value of the Corporate Debtor's property. 9. The order was communicated to all relevant parties and authorities for compliance and record-keeping purposes, and the application was allowed and disposed of by the Tribunal.
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