2017 (12) TMI 1565 - Tri - Insolvency and Bankruptcy

Operational Creditor's Insolvency Application Granted: Appointment of Interim Resolution Professional

The court admitted the Operational Creditor's application under Section 9 of the Insolvency & Bankruptcy Code 2016 against the Corporate Debtor for ... Corporate Insolvency Resolution Process - default in making payment of the outstanding debt claimed - Held that:- Operational Creditor has complied with Section 9 (3) (b) 85 (c) of the I&B Code, 2016, by filing Affidavit and Bank certificate which are placed at pages 13 and 22 respectively of the typed set filed with the Application. Under para 4 of the Affidavit, it has been stated that the Corporate Debtor has failed to bring to notice of the Operational Creditor, the existence of a dispute or a pendency of a suit or arbitration proceedings filed before the service of the Demand Notice. The Operational Creditor has fulfilled all the requirements of law for admission of the Application and has also proposed the name of IRP after obtaining the written consent in Form-2, which is placed at page 16 of the typed set filed with the Application. This Bench is satisfied that the Corporate Debtor has committed default in making payment of the outstanding debt claimed by the Operational Creditor. Application admitted and the commencement of the Corporate Insolvency Resolution Process is ordered which ordinarily shall get completed within 180 days, reckoning from the day this order is passed. Issues: Application under Section 9 of the Insolvency & Bankruptcy Code 2016 for Corporate Insolvency Resolution Process, dispute over unpaid lease rent, appointment of Interim Resolution Professional (IRP), declaration of moratorium.Analysis:1. The Operational Creditor filed an application under Section 9 of the Insolvency & Bankruptcy Code 2016 seeking to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor. The Operational Creditor alleged non-payment of lease rent by the Corporate Debtor for premises sublet by the Lessee with the consent of the Operational Creditor. The Demand Notice dated 14.09.2017 under Section 8 of the I&B Code demanded payment of Rs. 28,04,553/- with interest. The Corporate Debtor disputed the claim, asserting no agreement existed between them, but evidence presented by the Operational Creditor contradicted this assertion.2. The Operational Creditor fulfilled the requirements of law for admission of the application, including submission of Affidavit, Bank certificate, and proposing the name of the IRP. The Operational Creditor also provided evidence of clear understanding between the parties regarding their landlord-tenant relationship. The Bench found the Corporate Debtor in default of payment and admitted the application, initiating the Corporate Insolvency Resolution Process, which should ordinarily be completed within 180 days from the date of the order.3. Mr. A. Mohan Kumar was appointed as the IRP, with no pending disciplinary proceedings against him. The IRP was directed to take immediate charge of the Corporate Debtor's management and make a public announcement as prescribed under the I&B Code. A moratorium was declared from the date of the order until the completion of the Corporate Insolvency Resolution Process, prohibiting various actions against the Corporate Debtor, including suits, asset transfers, and recovery of property.4. During the moratorium period, the supply of essential goods or services to the Corporate Debtor was not to be terminated, suspended, or interrupted. The IRP was mandated to comply with specific provisions of the Code, and the Directors, Promoters, or persons associated with the management of the Corporate Debtor were directed to cooperate with the IRP. The Registry was instructed to communicate the order to all relevant parties and provide necessary details to the IRP for compliance with the provisions of the I&B Code.