Tribunal admits insolvency application against corporate debtor for default on operational debt. Interim resolution professional appointed.

The tribunal admitted the application for insolvency declaration against the corporate debtor filed by the operational creditor. The debtor acknowledged the debt but failed to repay, leading to a finding of valid operational debt and default. With the debtor not contesting the claim or attending the hearing, the tribunal appointed an interim resolution professional, imposed a moratorium, and initiated the insolvency resolution process in compliance with the Insolvency and Bankruptcy Code.

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Issues:
1. Application for declaration of insolvency against a corporate debtor.
2. Validity of operational debt and default by the debtor.
3. Compliance with the provisions of the Insolvency and Bankruptcy Code.
4. Appointment of an interim resolution professional and initiation of the insolvency resolution process.

Analysis:
1. The petitioner, an operational creditor, filed an application seeking insolvency declaration against the debtor, citing non-repayment of an outstanding amount. The debtor had acknowledged the debt but failed to repay despite several reminders and a demand notice. The debtor did not contest the claim or attend the hearing, indicating acceptance of liability.

2. The tribunal found that the operational creditor had issued valid purchase orders and paid an advance amount, establishing the operational debt. The debtor admitted default in payment but failed to clear the outstanding amount. The notice of the insolvency application was duly served on the debtor, who did not raise any dispute within the stipulated time.

3. Considering the provisions of the Insolvency and Bankruptcy Code, the tribunal concluded that the operational creditor had met the criteria for an operational debt and established the debtor's default. The debtor's absence at the hearing and lack of representation further supported the admission of the insolvency petition.

4. Consequently, the tribunal admitted the petition, appointed an interim resolution professional, and imposed a moratorium on legal actions against the debtor. The appointed professional was directed to comply with the Code's provisions, provide progress reports, and initiate the corporate insolvency resolution process promptly. The commencement of the resolution process was deemed effective from the order's date.

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