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TMI Blog2020 (10) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... i, Member (J) and Pradeep R. Sethi, Member (T) For the Appellant : Vishal Aggarwal For the Respondent : Vivek Aggarwal , Advocates JUDGMENT Pradeep R. Sethi, Member (T) 1. The instant application is filed by Jai Bhagwan Raghbir Chand (Jai Bhagwan) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) for initiation of Corporate Insolvency Resolution Process (CIRP) in the matter of of Nath Solvent Extractions Pvt. Ltd. (Nath Solvent). The application is signed by Shri Raghbir Chand, Proprietor, Jai Bhagwan. His affidavit verifying the contents of the application is at pages 16 and 17 of the petition. 2. As per the master data of Nath Solvent (Annexure-A of the petition), the registered address is Village Mohra, Ambala Cantt. Therefore, jurisdiction lies with this Bench of the Tribunal. 3. In Part IV of the application, it is stated that Jai Bhagwan is a proprietorship firm engaged in the business of supplying sun flower seeds, mustard seeds etc. and was making supplies to Nath Solvent, long time for which proper invoices/bills were raised, supposed to be cleared immediately on receipt and on failure to do so, interest @18% per annum would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of the invoice. 10. The learned counsel for Jai Bhagwan has argued that no evidence of sending the two letters of the years 2016 and 2017 to Jai Bhagwan has been placed on record and therefore, a false and lame plea has been taken by Nath Solvent. It is pleaded that Nath Solvent has not given the time period for which the price was allegedly inflated and no any details have been given as to how the same is said to be inflated. 11. The learned counsel for Jai Bhagwan has pleaded that in the reply filed by Nath Solvent, the debt was duly admitted and that necessary Sales Tax was also deposited by them. We find that in the reply, Nath Solvent has filed the ledger account of Jai Bhagwan in its books for FY 2016-17 and 2017-18. The balance shown therein as on 31.03.2017 and 31.03.2018 is ₹ 38,60,000 and ₹ 22,10,000 respectively. The ledger account filed by Jai Bhagwan (Annexure A-2 of the petition) shows balance as on 31.03.2017 and 31.03.2018 of ₹ 38,60,006.96 and ₹ 24,10,170.96 respectively. Therefore, almost the same balances are being shown by Nath Solvent in its books of account and to that extent, the debt can be said to be almost fully acknowled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Jai Bhagwan from depositing ₹ 4,16,002.11 and therefore, the amount of ₹ 4,16,002.11 alongwith interest is not being claimed. 15. As regards the amount of interest included by Jai Bhagwan in the debt due, the issue may be examined by the IRP while verifying the claims submitted. 16. Section 9(5)(i) of the Code is as follows:- (5) The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), by an order- (i) admit the application and communicate such decision to the operational creditor and the corporate debtor if, - (a) the application made under sub-section (2) is complete; (b) there is no repayment of the unpaid operational debt; (c) the invoice or notice for payment to the corporate debtor has been delivered by the operational creditor; (d) no notice of dispute has been received by the operational creditor or there is no record of dispute in the information utility; and (e) there is no disciplinary proceeding pending against any resolution professional proposed under subsection (4), if any. 17. We find that the application under Section 9(2) of the Code is complete. We ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Professional but it is not obliged to do so. In the instant case also, the operational creditor has not proposed the name of any Resolution Professional to be appointed as Interim Resolution Professional. Section 16(3)(a) of the Code says that where the application for Corporate Insolvency Resolution Process is made by an operational creditor and - a) no proposal for an interim resolution professional is made, the Adjudicating Authority shall make a reference to the Board for the recommendation of an insolvency professional who may act as an interim resolution professional; b) x x x x x 23. Sub-section (4) of Section 16 says that the Board shall, within ten days of the receipt of a reference from the Adjudicating Authority under subsection (3), recommend the name of an insolvency professional to the Adjudicating Authority against whom no disciplinary proceedings are pending. 24. In this regard a letter bearing File No. 25/02/202020-NCLT dated 07.01.2020 has been received from the National Company Law Tribunal, New Delhi forwarding therewith a copy of letter No. IBBI/IP/EMP/2019/01 dated 31.12.2019 along with the guidelines and the panel of resolution professionals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouncement within three days as contemplated under Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 of the initiation of the Corporate Insolvency Resolution Process in terms of Section 13(1)(b) of the Code read with Section 15 calling for the submission of claims against Corporate Debtor; vi) It is hereby directed that the Corporate Debtor, its Directors, personnel and the persons associated with the management shall extend all cooperation to the Interim Resolution Professional in managing the affairs of the Corporate Debtor as a going concern and extend all cooperation in accessing books and records as well as assets of the Corporate Debtor; vii) The Interim Resolution Professional shall after collation of all the claims received against the corporate debtor and the determination of the financial position of the corporate debtor constitute a Committee of Creditors and shall file a report, certifying constitution of the Committee to this Tribunal on or before the expiry of thirty days from the date of his appointment, and shall convene first meeting of the committee within seven days of fil ..... 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