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TMI Blog2021 (10) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... stablished the existence of debt and default on the part of the CD. The petition is within the limitation period. The present application is admitted initiating CIRP on the CD, with immediate effect - application admitted - moratorium declared. - IB-577/ND/2020 - - - Dated:- 24-9-2021 - Abni Ranjan Kumar Sinha, Member (J) And K.K. Vohra, Member (T) For the Appellant : Mohtashim Kibriya, Adv. For the Respondents : S.P. Singh, Adv. ORDER K.K. Vohra, Member (T) 1. This is a petition filed by Operational Creditor (OC) seeking initiation of Corporate Insolvency Regulation Process (CIRP) against the Corporate Debtor (CD) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) for the alleged default on the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute between the parties. 3. Heard the parties and perused the case records. 4. The provisions pertaining to filing a petition for initiation of CIRP by OC are given under Section 9 of IBC. Before filing of Section 9 petition, the OC shall issue demand notice under Section 8 of the IBC. Section 8 and Section 9 have been reproduced below: 8. Insolvency resolution by operational creditor. (1) An operational creditor may, on the occurrence of a default, deliver a demand notice of unpaid operational debtor copy of an invoice demanding payment of the amount involved in the default to the corporate debtor in such form and manner as may be prescribed. (2) The corporate debtor shall, within a period of ten days of the receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companied with such fee as may be prescribed. (3) The operational creditor shall, along with the application furnish- (a) a copy of the invoice demanding payment or demand notice delivered by the operational creditor to the corporate debtor; (b) an affidavit to the effect that there is no notice given by the corporate debtor relating to a dispute of the unpaid operational debt; (c) a copy of the certificate from the financial institutions maintaining accounts of the operational creditor confirming that there is no payment of an unpaid operational debt by the corporate debtor, if available; (d) a copy of any record with information utility confirming that there is no payment of an unpaid operational debt by the corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility; or (e) any disciplinary proceeding is pending against any proposed resolution professional: Provided that Adjudicating Authority, shall before rejecting an application under subclause (a) of clause (ii) give a notice to the applicant to rectify the defect in his application within seven days of the dale of receipt of such notice from the Adjudicating Authority. (6) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (5) of this section. 5. While applying the aforementioned provisions over the facts of the present case, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 14 of IBC. The necessary consequences of imposing the moratorium flow from the provisions of Section 14 (1) (a), (b), (c) (d) of IBC. Thus, the following prohibitions are imposed: a) the institution of suits or continuation of pending suits or proceedings against the CD including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; b) transferring, encumbering, alienating or disposing of by the CD any of its assets or any legal, right or beneficial interest therein. c) any action to foreclose, recover or enforce any security interest created by the CD in respect of its properly including any action under the Securitization and Reconstruction of Financial Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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