Tribunal Confirms Debt, Initiates Insolvency Process | IRP Appointed, Moratorium in Place

The Tribunal confirmed the outstanding operational debt of Rs. 26,66,302 against the Corporate Debtor, leading to the initiation of the Corporate Insolvency Resolution Process. An Interim Resolution Professional (IRP) was appointed to oversee the resolution process, including implementing a moratorium to safeguard assets and ensure uninterrupted supply of goods and services. The Tribunal found no dispute regarding the debt, resulting in the admission of the petition and commencement of insolvency proceedings.

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Issues involved:
Initiation of Corporate Insolvency Resolution Process for outstanding operational debt under Section 9 of the Insolvency & Bankruptcy Code, 2016.

Analysis:
1. Facts and Claim Details: The petition was filed by the Operational Creditor against the Corporate Debtor for an outstanding operational debt of Rs. 26,66,302. The Operational Creditor provided services for clearing import shipments, and despite issuing several reminders and emails, a significant amount remained unpaid. The Corporate Debtor acknowledged the debt but failed to make the payment.

2. Communication and Notices: The Operational Creditor sent demand notices and legal notices to the Corporate Debtor, followed by a bank statement showing non-receipt of the debt amount. The Corporate Debtor did not respond to any of the notices or attend the hearings, indicating a lack of dispute regarding the outstanding debt.

3. Findings and Decision: After considering the facts and evidence presented, the Tribunal found that the outstanding operational debt was established, and the default by the Corporate Debtor was confirmed. The petition was deemed admissible, and the appointment of an Interim Resolution Professional (IRP) was approved.

4. Resolution Process: The IRP appointed was required to initiate the insolvency resolution process, including making public announcements and performing duties as per the Insolvency and Bankruptcy Code. A moratorium was declared to prohibit legal proceedings against the Corporate Debtor and to ensure the completion of the insolvency resolution process without liquidation of assets.

5. Conclusion: The Tribunal admitted the petition, confirmed the appointment of the IRP, and initiated the Corporate Insolvency Resolution Process. The moratorium was imposed to protect the assets of the Corporate Debtor and facilitate the resolution process while ensuring the supply of essential goods and services continued uninterrupted.

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