Tribunal grants petition for Corporate Insolvency Process due to unpaid debt, imposes moratorium.

The Tribunal granted the Operational Creditor's petition for initiation of Corporate Insolvency Process against the Corporate Debtor due to its failure to pay operational debt of &8377;46,19,969 for services rendered. Despite multiple reminders and dishonoured cheques, the Corporate Debtor did not address the outstanding amount. With no response from the Corporate Debtor, the Tribunal imposed a moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016, appointing an Interim Resolution Professional to manage the process. Further proceedings were scheduled for 10th January 2019.

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Issues:
Initiation of Corporate Insolvency Process due to failure to liquidate operational debt.

Analysis:
The petitioner, as an Operational Creditor, sought initiation of Corporate Insolvency Process against the Respondent/Corporate Debtor for its inability to pay its operational debt. The Operational Creditor provided services for setting up air conditioning units to the Corporate Debtor, resulting in an outstanding amount of &8377; 46,19,969. Despite repeated reminders and dishonoured cheques, the Corporate Debtor failed to reduce the liability. Invoices were raised against the supply of goods and equipment, reflecting the debt owed by the Corporate Debtor.

The Operational Creditor issued a demand notice under Section 8 of the Code, which went unanswered. The Operational Creditor filed the petition with supporting documents, including dishonoured cheques and bank statements. The Corporate Debtor was served but did not respond, leading to an ex-parte proceeding. With no dispute raised, the Tribunal considered the Operational Creditor's plea and imposed a moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016, preventing legal actions against the Corporate Debtor.

The Tribunal approved the appointment of an Interim Resolution Professional (IRP) proposed by the Operational Creditor's counsel. The IRP, Mr. Sanjay Kumar Goel, was directed to undertake necessary actions as per the Code's provisions. The IRP was instructed to submit a report within the statutory period, and the order was to be shared with both parties and the IRP. The case was scheduled for further consideration on 10th January 2019.

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