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TMI Blog2022 (7) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... and there is no word expressed about the existence of a dispute with the Corporate Debtor. The Petition, as filed by the Operational Creditor, is required to be admitted under Section 9(5) of the IBC, 2016 - Petition admitted - moratorium declared. - IBA/696/2020 - - - Dated:- 27-6-2022 - S. Ramathilagam, J. (Member (J)) And Anil Kumar B., Member (T) For the Appellant : Ashish Garg, Advocate For the Respondents : S. Manjula Devi, Advocate ORDER S. Ramathilagam, J. (Member (J)) 1. Under Adjudication is IBA/696/2020 and that has been filed by My Box Technologies Private Limited (hereinafter referred to as 'Operational Creditor') under Section 9 of the Insolvency Bankruptcy Code 2016 (in short, 'IBC, 2016') r/w Rule 6 of the Insolvency Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against Multicity Digital Consortium Private Limited (hereinafter referred to as 'Corporate Debtor'). The prayer made is to admit the Application, initiate the Corporate Insolvency Resolution Process against the Corporate Debtor, declare a moratorium and appoint Interim Resolution Professional (IRP). 2. Part I of the application, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Corporate Debtor has filed to make the agreed payment for the said supply of STBs. In turn, the Operational Creditor sent various e-mails dated 25.02.2020, 18.02.2020, 12.02.2020, 11.02.2020 and 01.03.2019, demanding the Corporate Debtor to make the payment. 10. It was further submitted that the Corporate Debtor has defaulted around Rs. 1,67,33,866/- (along with interest), in the absence of any proper reply from the Corporate Debtor regarding the outstanding payment the Operational Creditor proceeded to initiate legal action against the Corporate Debtor. Apprehending the legal action the Corporate Debtor sent a frivolous complaint letter dated 13.03.2020 to the Operational Creditor which was also countered by the Operational Creditor. 11. It was further submitted that after waiting for sufficient time, the Operational Creditor has caused a Demand Notice dated 13.04.2020 to the Corporate Debtor. Not satisfied with the reply of the Corporate Debtor the Operational Creditor has filed this application to initiate CIRP against the Corporate Debtor. 12. Per Contra, Learned Counsel for the Corporate Debtor submitted that the date of default mentioned it the application is inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid period. Explanation.--For the removal of doubts, it is hereby clarified that the provisions of this section shall not apply to any default committed under the said sections before 25th March, 2020. 16. Here, we see that the invoice Nos. 0401, 0441 and 0460 were raised on 31.10.2019, 30.11.2019 and 31.12.2019, if the payment terms agreed in the above invoices are considered, full payment of invoice amount should be paid by the Corporate Debtor on or before the 90th day of the invoice date i.e., 31.01.2020, 29.02.2020 and 31.03.2020, which clarifies that the date of default of the invoice Nos. 0401, 0441 would not be after 25.03.2020, it makes clear that the application was not hit by Section 10A of IBC, 2016. 17. It is also seen that the total amount mentioned in the invoice Nos. 0401, 0441 itself exceeds the threshold limit of 1 Crore specified in Section 4 of IBC, 2016. 18. Coming to the next contention regarding the pre-existing dispute, we see that in the complaint letter dated 13.03.2020 it was stated as below We have been receiving the set up box STB Error E 100 several times over past 6 months. The details of the occurrence of this error are given bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IP-N00166/2017-18/10435] (e-mail id:[email protected]) as the Interim Resolution Professional subject to the condition that no disciplinary proceedings are pending against such an Interim Resolution Professional named and disclosures as required under IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 are made within a period of one week from the date of this order. The IRP appointed shall take in this regard such other and further steps as are required under the Statute, more specifically in terms of Section 15, 17, 18 of the Code and file his report within 20 days before this Bench. The powers of the Board of Directors of the Corporate Debtor shall stand superseded as a consequence of the initiation of the CIRP in relation to the Corporate Debtor in terms of the provisions of IBC, 2016. 20. As a consequence of the Application being admitted in terms of Section 9(5) of the Code, the moratorium as envisaged under the provisions of Section 14(1) and as extracted hereunder shall follow in relation to the Corporate Debtor: a. The institution of suits or continuation of pending suits or proceedings against the respondent including the execution of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other authority; (b) a surety in a contract of guarantee to a corporate debtor. 22. The duration of the period of moratorium shall be as provided in Section 14(4) of the Code and for ready reference reproduced as follows: (4) The order of moratorium shall have effect from the date of such order till the completion of the Corporate Insolvency Resolution Process: Provided that where at any time during the Corporate Insolvency Resolution Process period, if the Adjudicating Authority approves the Resolution Plan under sub-Section (1) of Section 31 or passes an order for liquidation of Corporate Debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or Liquidation Order, as the case may be. 23. The Operational Creditor is directed to pay a sum of Rs. 1,00,000/- (Rupees One Lakh Only) to the Interim Resolution Professional upon the Interim Resolution Professional filing the necessary declaration form as required under the provisions of the Code to meet out the expenses to perform the functions assigned to her in accordance with Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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