2022 (8) TMI 545 - 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 - time limitation - HELD THAT - It is noted that the Operational Creditor has supplied the goods to the Corporate Debtor and raised an invoice of Rs. 5,51,933/-. The copy of invoices along with delivery challan is annexed at page no. 12 to 123. The demand notice was issued by the Operational Creditor on 11.12.2019 and same was delivered to the Corporate Debtor on 17.12.2019. This Adjudicating Authority vide order dated 25.02.2020 again directed to the Operational Creditor to supply the copy of the application and inform the Corporate Debtor to appear and contest this present application but no one appeared on behalf of the Corporate Debtor. Hence, this Adjudication Authority vide order dated 08.03.2021 decided to proceed Ex-parte against the Corporate Debtor. Even after giving sufficient opportunities to the Corporate Debtor, none appeared on behalf of the Corporate Debtor. The present application is complete in view of Section 9(5) of the IB Code, 2016. The present application has been filed on 01.01.2020 and the claim amount of Rs. 8,58,956/- meets the threshold limit as prescribed under Section 4 of the IB Code, 2016. It is also well within the limitations. Thus, it is found that the present IB Petition is complete and fit for triggering the Insolvency Resolution Process in respect of Corporate Debtor. Therefore, the present IB Petition, filed under Section 9 of the Code, deserves admission - petition admitted - moratorium declared.

Summary

Issues:
Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Operational Creditor against Corporate Debtor.

Analysis:
The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, citing a debt in default of Rs. 8,58,956/- including interest, with the default date as 16.08.2017. The Operational Creditor had a business relationship with the Corporate Debtor, supplying goods as per requirements. The debt amount included principal outstanding and interest. A demand notice was issued to the Corporate Debtor on 11.12.2019, which was delivered on 19.12.2019, but no repayment or response was received.

The Tribunal noted that the Operational Creditor had supplied goods and raised an invoice of Rs. 5,51,933/-, with supporting documents annexed. Despite multiple opportunities for the Corporate Debtor to contest the application, no appearance was made on its behalf. The Tribunal found the application complete under Section 9(5) of the IB Code, meeting the prescribed threshold amount and limitations. Consequently, the Tribunal decided to proceed ex-parte against the Corporate Debtor.

The Tribunal admitted the Corporate Debtor into CIRP, declaring a moratorium under Section 14 of the Code, prohibiting various actions against the Corporate Debtor's assets. An Insolvency Resolution Professional (IRP) was appointed from the list provided by IBBI. The IRP was directed to conduct the CIRP and make a public announcement, ensuring the continuity of goods/services supply to the Corporate Debtor during the moratorium period. The Operational Creditor was instructed to pay an advance to the IRP for the smooth conduct of CIRP.

The Tribunal directed the Registry to communicate the order to all relevant parties and upload it on the website. The application was allowed and disposed of, marking the completion of the proceedings.