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2022 (8) TMI 930 - 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 applicant has brought on record all the documents to substantiate its claim. On perusal of the record it is found that email dated 18.09.2021 written by the applicant calling upon the corporate debtor to clear the outstanding debt was replied by the corporate debtor vide email dated 20.09.2021 - it is established that the debt is due and payable and default has occurred. Moreover, the corporate debtor has admitted its debt within limitations and has shown its inability to clear the outstanding debt. The present application is admitted, in terms of section 9 (5) of IBC, 2016. Application admitted - moratorium declared.
Issues:
1. Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Process (CIRP) against a Corporate Debtor. Analysis: The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Process against the Corporate Debtor, based on non-payment of outstanding debt amounting to Rs. 1,22,88,481/-. The Applicant, a construction firm, had undertaken work for the Corporate Debtor as per a work order dated 10.10.2020, and subsequently raised an invoice for the same. Despite reminders and a statutory demand notice, the debt remained unpaid, leading to the application being filed within the limitation period. Analysis: The Corporate Debtor, engaged in building construction, had changed its name multiple times, with the latest being Omshri Devprocon Limited. The Applicant provided evidence of the debt owed, including invoices, emails, and certificates of incorporation. The Corporate Debtor acknowledged the debt but cited financial constraints for the delay in payment. The Tribunal found the debt to be due and payable, with the default occurring on 13.05.2021, well within the limitation period. Analysis: The Tribunal had jurisdiction to entertain the application as the registered office of the Corporate Debtor was in Ahmedabad, Gujarat. The Applicant complied with the necessary requirements under the Insolvency and Bankruptcy Code, including submitting an affidavit confirming no dispute regarding the unpaid operational debt. The Tribunal, after considering all submissions and documents, admitted the application under Section 9(5) of the IBC, 2016. Analysis: Regarding the appointment of an Interim Resolution Professional (IRP), the Applicant proposed the name of Mr. Arpan Maheshkumar Shah, who was appointed as the IRP for the Corporate Debtor. The Tribunal directed the Operational Creditor to deposit a sum of Rs. 2.00 lakhs with the IRP to meet necessary expenses. The moratorium period under Section 14(1) of the Code was imposed on the Corporate Debtor, prohibiting certain actions during this period. Analysis: The Tribunal ordered the communication of the judgment to the Applicant, Corporate Debtor, and IRP, with additional copies forwarded to the Insolvency and Bankruptcy Board of India (IBBI) for record-keeping. The Applicant was instructed to provide a complete paper book to the IRP and update the Master Data with the Registrar of Companies (ROC). Compliance reports were to be sent to the Registrar, NCLT, ensuring procedural adherence.
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