Tribunal Admits Operational Creditor Petition for Default Repayment

The Tribunal admitted the Petition filed by an operational creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to the Corporate Debtor's default in repaying a significant sum. A moratorium was declared on the Corporate Debtor, and an Interim Resolution Professional was appointed. The Bench emphasized adherence to the Code's provisions in addressing repayment defaults effectively.

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Issues:
1. Default in repayment by the Corporate Debtor.
2. Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016.
3. Appointment of Interim Resolution Professional.
4. Declaration of moratorium on the Corporate Debtor.
5. Direction for public announcement of initiation of corporate insolvency process.

Analysis:

1. The Petitioner, an operational creditor, filed a petition stating that the Corporate Debtor had defaulted in repaying a sum of Rs. 1,18,34,618.66. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking admission of the petition, declaring a moratorium on the Corporate Debtor, and appointment of an Interim Resolution Professional.

2. The Petitioner, a cooperative society facilitating the procurement of natural rubber, had supplied rubber to the Corporate Debtor, a company engaged in manufacturing rubber tires and tubes. The value of the service provided was Rs. 1,18,34,618.66. The Petitioner issued a statutory notice demanding payment, which was acknowledged by the Corporate Debtor.

3. The Petitioner submitted evidence of the outstanding amount through bank statements and an affidavit stating that the Corporate Debtor had not disputed the debt amount. The Petitioner also nominated an Interim Resolution Professional who expressed willingness for the appointment and confirmed no pending disciplinary proceedings.

4. The Corporate Debtor neither replied to the notice nor appeared before the Bench. The Bench found that the Corporate Debtor failed to discharge the liability, leading to a default of Rs. 1,18,34,618.66. Consequently, the Bench admitted the Petition under Section 9 of the Code, declaring a moratorium with specific directions.

5. The Bench issued directions prohibiting legal actions against the Corporate Debtor, ensuring continuity of essential supplies, and appointing the nominated Interim Resolution Professional. The moratorium was effective from a specified date until the completion of the insolvency resolution process or liquidation approval.

In conclusion, the Tribunal admitted the Petition, declared a moratorium, and appointed an Interim Resolution Professional, emphasizing the importance of following the provisions of the Insolvency and Bankruptcy Code, 2016 for resolving the default in repayment by the Corporate Debtor.

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