2017 (4) TMI 1398 - Tri - Insolvency and Bankruptcy

Tribunal admits petition for Corporate Insolvency Resolution Process due to payment default. Interim Resolution Professional appointed, moratorium declared.

The Tribunal admitted the petition for the initiation of Corporate Insolvency Resolution Process against the Corporate Debtor due to a default in payment ... Corporate insolvency process - default for not making payments of ₹ 45,73,250/-. - Held that:- The Corporate Debtor has committed default for not making payment of debt of ₹ 45,73,250/-. Therefore, the petition is admitted and Shri Arun Kumar Gupta is appointed as Interim Resolution Professional. Moratorium is also declared as per provision of section 14 of the Insolvency & Bankruptcy Code, 2016. Direction is also being issued for issuing public announcement in terms of section 15 of Insolvency & Bankruptcy Code, 2016. The petitioner is also directed to serve the copy of the order on the Corporate Debtor. This Order be communicated to the Financial Creditor as well as Corporate Debtor in terms of section 7 of the Insolvency and Bankruptcy Code, 2016. Issues:Initiation of Corporate Insolvency Resolution Process under sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor for default in payment.Analysis:The Operational Creditor filed an application under sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor due to a default in payment amounting to Rs. 45,73,250. The Operational Creditor had supplied materials to the Corporate Debtor as per a Purchase Order, raising four invoices for payment. The Corporate Debtor only paid Rs. 28,00,000 out of the total due amount of Rs. 73,73,250, leaving a balance of Rs. 45,73,250 unpaid. The Operational Creditor contended that the Purchase Order and invoices formed a legally binding contract obligating the Corporate Debtor to make the payments.The Operational Creditor submitted supporting documents, including the Purchase Order, invoices, and Board Resolution authorizing the initiation of Corporate Insolvency Resolution. The petition was signed by an authorized representative and included bank statements showing the payment default by the Corporate Debtor. Additionally, notices under the Companies Act, 1956, and Demand Notices were provided as evidence of the default. The Operational Creditor also proposed the name of an Interim Resolution Professional, Shri Arun Kumar Gupta, who was deemed qualified and suitable for the role.Based on the evidence presented, the Tribunal found that the Corporate Debtor had indeed defaulted on the payment of Rs. 45,73,250. Consequently, the petition was admitted, and Shri Arun Kumar Gupta was appointed as the Interim Resolution Professional. A moratorium was declared as per section 14 of the Insolvency & Bankruptcy Code, 2016, and directions were issued for a public announcement and service of the order on the Corporate Debtor. The Financial Creditor and Corporate Debtor were also to be informed of the order as per section 7 of the Insolvency and Bankruptcy Code, 2016. The case was listed for a progress report submission by the Interim Resolution Professional on 28th April 2017.