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of <h1>Power of Attorney Holder Can File Insolvency Petition for Rent Arrears</h1> The Tribunal held that the power of attorney holder of the Operational Creditor could file the petition, considering the authority given for filing. It ... Maintainability of application - initiation of CIRP - Corporate Debtor was unable to pay amount towards arrears of rent for use of the premises - section 9 of the Insolvency & Bankruptcy Code, 2016 - HELD THAT:- Considering the facts of the case, the provisions of law and various rulings as relied on by the parties to the proceeding, I have come to the conclusion that this petition is maintainable. It is seen from the record that the Operational Creditor has complied with the provisions of section 9(3)(b) and 9(3)(c) of the I&B Code. Admittedly, the operational debt is claimed and the Corporate Debtor is unable to pay the same. Hence, the CIRP has to be admitted. Application admitted - moratorium declared. Issues:1. Whether power of attorney holder of Operational Creditor can file the petitionRs.2. Whether the recovery of arrears of rent can be claimed as operational debt within the meaning of section 3(11) of the I&B CodeRs.3. Whether the amount claimed is an ascertained sum of moneyRs.Analysis:1. The Tribunal considered whether the power of attorney holder of the Operational Creditor could file the petition. The Corporate Debtor contended that the petition was not maintainable as it was filed by the attorney holder and not the Operational Creditor herself. The Tribunal referred to relevant rulings and held that in this case, the power of attorney was given to the signatory for filing the application, making the petition maintainable.2. The Tribunal examined whether the recovery of arrears of rent could constitute operational debt under the I&B Code. The Corporate Debtor argued that arrears of rent should not be considered operational debt and that a suit should be filed for rent recovery. However, the Tribunal referenced past judgments and determined that letting out premises for rent constitutes providing services, which falls under operational debt as per the I&B Code. The Tribunal concluded that recovery of arrears of rent is indeed operational debt.3. The Tribunal assessed whether the claimed amount was an ascertained sum of money. The Corporate Debtor disputed the amount claimed, alleging it was not definite. However, the Tribunal found that the Corporate Debtor had received a demand notice and did not dispute the claim within the stipulated time. Additionally, a settlement deed between the parties supported the claim amount, leading the Tribunal to conclude that the amount claimed was ascertained and the Corporate Debtor's defense was untenable.Furthermore, the Tribunal admitted the petition under Section 9 of the I&B Code, initiating the Corporate Insolvency Resolution Process for the Corporate Debtor. A moratorium was declared, and an Interim Resolution Professional was appointed. The Tribunal outlined the restrictions during the moratorium period and the responsibilities of the IRP, emphasizing compliance with the I&B Code provisions. The order detailed the timeline for finalizing the Resolution Plan and communication requirements among the involved parties. The Tribunal disposed of the application and scheduled a progress report submission for a future date.
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