Tribunal admits petition against M/S. S. N. Plumbing Private Limited for default in payment

The Tribunal admitted the petition filed by an Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code against the Corporate Debtor, M/S. S. N. Plumbing Private Limited, due to default in payment of operational debt. An Interim Resolution Professional was appointed to conduct the Corporate Insolvency Resolution Process, activating the provisions of Moratorium under Section 14 of the Code. The Tribunal directed the Interim Resolution Professional to adhere to the Code's requirements and report progress within the specified timeframe, effectively initiating the resolution proceedings.

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Issues:
1. Petition filed under Section 9 of the Insolvency and Bankruptcy Code by an Operational Creditor.
2. Default in payment by the Corporate Debtor.
3. Non-payment of outstanding dues leading to the initiation of insolvency proceedings.
4. Appointment of an Interim Resolution Professional and commencement of the Corporate Insolvency Resolution Process.

Analysis:

1. The Petitioner, an Operational Creditor, filed a petition invoking Section 9 of the Insolvency and Bankruptcy Code, submitting Form No. 5 under Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016. The petition detailed the operational debt owed by the Corporate Debtor, M/S. S. N. Plumbing Private Limited, for various supplies including pipe fittings, safety helmets, and industrial hardware, among others.

2. The Petition highlighted that despite multiple invoices raised by the Operational Creditor, the Corporate Debtor failed to make payments. The last payment was made on 10th November, 2015, and subsequent cheques issued for part payments bounced due to insufficient funds. A Notice under section 8 was issued on 17th July, 2017, as per the prescribed form, and the Corporate Debtor did not raise any dispute or objection to the demand notice.

3. The Tribunal examined the evidence presented and found that the nature of the debt qualified as an "Operational Debt" under the Code. It was established that there was a default on the part of the Corporate Debtor, as defined under the Code, and the Operational Creditor had not received any payments post the notice issued under section 8. The Tribunal concluded that the petition deserved admission based on the facts presented.

4. Following the admission of the petition, an Insolvency Professional was proposed by the Operational Creditor and appointed as the Interim Resolution Professional to conduct the Insolvency Resolution Process. The provisions of Moratorium under Section 14 of the Code were deemed operative, prohibiting certain actions against the Corporate Debtor. The next steps, including the Public Announcement of the Insolvency Resolution Process, were outlined, and the Interim Resolution Professional was directed to comply with the Code's provisions and report progress to the Tribunal within the specified timeframe.

In conclusion, the Tribunal admitted the petition, initiating the Corporate Insolvency Resolution Process effective from the date of the order, with specific directions and obligations placed on the appointed Interim Resolution Professional to oversee the resolution proceedings diligently.

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