Tribunal Grants Financial Creditor Reply Time, Appellant Rejoinder Period, and Resolution Professional Oversight

The Tribunal ruled in favor of the Financial Creditor, allowing them to file a reply affidavit within 10 days regarding the debt payable by the Corporate Debtor. The Appellant was granted a week to file a rejoinder. Notice was directed to be issued to the Resolution Professional, with instructions for the company's operations to be overseen by the Resolution Professional and the suspended Board of Directors. The Resolution Professional was authorized to manage the Corporate Debtor's bank account for essential functions like supplier payments and employee salaries, ensuring the company's ongoing operations.

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Issues:
Debt payable by Corporate Debtor to Financial Creditor; Default; Validity of documents submitted; Notice to Financial Creditors and Resolution Professional; Operation of company's bank account.

Debt Payable by Corporate Debtor to Financial Creditor:
The judgment addresses the argument presented by the Appellant that there is no debt payable by the Corporate Debtor to the Financial Creditor, thus negating the existence of default. The Senior Counsel for the Appellant refers to Form-1 to support the claim that the document of debt and default provided by the Respondent is not valid as it lacks the necessary signatures, including that of the Competent Authority. The Tribunal allows the Financial Creditors to file a reply affidavit within 10 days, and the Appellant is granted a week to file a rejoinder.

Notice to Financial Creditors and Resolution Professional:
The judgment directs that notice be issued to the newly impleaded 8th Respondent, the Resolution Professional, by Speed post, with Dasti service permitted. The Resolution Professional is instructed to ensure the company remains a going concern, with the suspended Board of Directors providing assistance. The Resolution Professional is authorized to allow the operation of the Corporate Debtor's bank account for essential day-to-day functions like supplier payments, employee salaries, and electricity bills. The appeal is scheduled for admission on a specified date.

Operation of Company's Bank Account:
The Tribunal orders that the Resolution Professional oversees the company's operations, with the suspended Board of Directors offering support. Cheques from the company's bank account can only be issued with the Resolution Professional's authorization. The bank account is permitted to be used for necessary business activities such as paying suppliers, employee wages, and utility bills to ensure the company's functioning continues smoothly.

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