Tribunal admits Company Petition under Insolvency & Bankruptcy Code

The Tribunal admitted the Company Petition under Section 9 of The Insolvency & Bankruptcy Code, 2016, finding the Petitioner's claims substantiated due to the Corporate Debtor's non-response, dishonored cheques, and non-payment. A moratorium on legal actions was declared, essential supplies were directed to continue, and an Insolvency Professional was appointed as an Interim Resolution Professional. The order of moratorium would remain in effect until the completion of the insolvency resolution process or liquidation, as per the Code.

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Issues:
Company Petition under Section 9 of The Insolvency & Bankruptcy Code, 2016 for non-payment of dues by the Corporate Debtor.

Analysis:
1. The Petitioner filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against the Corporate Debtor for non-payment of dues amounting to Rs. 7,01,525. The Petitioner raised invoices for goods supplied to the Corporate Debtor, who failed to repay within the agreed credit period of 45 days.

2. The Corporate Debtor issued postdated cheques against the invoices, but all cheques were dishonored. The Petitioner issued statutory notices under Section 8 of the Code, followed by a Company Petition when the debtor failed to respond or make payments.

3. The Corporate Debtor failed to reply within the stipulated time frame to the notices sent under the Code. The Petitioner presented evidence of dishonored cheques and non-payment through a certificate from the bank, establishing default by the Corporate Debtor.

4. The Corporate Debtor's defense included requesting to withhold certain cheques, but subsequent correspondence and bounced cheques indicated non-payment. The Corporate Debtor admitted liability for some dues but disputed the total amount claimed by the Petitioner.

5. The Petitioner provided unchallenged evidence of Purchase Orders, raised invoices, and dishonored cheques, proving the supply of goods and non-payment by the Corporate Debtor, leading to default as per the provisions of the Code.

6. The Tribunal found the Petitioner's claims substantiated, as the Corporate Debtor failed to respond to notices, did not dispute the invoices, and acknowledged dishonored cheques. The lack of timely response and non-payment by the Corporate Debtor validated the Petitioner's petition under Section 9 of the Code.

7. The Tribunal admitted the petition, declaring a moratorium on legal actions against the Corporate Debtor, and directed the continuation of essential supplies. The order of moratorium was set to be in effect until the completion of the insolvency resolution process or liquidation, as per the Code.

8. The Tribunal referred the case to the Insolvency Bankruptcy Board of India for the appointment of an Insolvency Professional to act as an Interim Resolution Professional. The Registry was instructed to communicate the order to both parties involved in the case.

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