Tribunal declares Petitioner a Financial Creditor under Insolvency Code, admits petition, and appoints Resolution Professional.

The Tribunal found the Petitioner to be a Financial Creditor with a financial debt owed by the Corporate Debtor. The petition under Section 7 of the Insolvency and Bankruptcy Code was deemed maintainable as the Corporate Debtor defaulted on payment obligations. The Tribunal admitted the petition, declared a moratorium, prohibited suits against the Corporate Debtor, and appointed an Interim Resolution Professional to oversee the Corporate Insolvency Resolution Process.

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Issues Involved:
1. Whether the Petitioner is a Financial Creditor.
2. Whether there is a financial debt owed by the Corporate Debtor to the Petitioner.
3. Whether the Petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 is maintainable.

Issue-wise Detailed Analysis:

1. Whether the Petitioner is a Financial Creditor:
The Petitioner, M/s. Gowra Petrochem Private Limited, claimed to be a Financial Creditor to the Corporate Debtor, M/s. Ashok Polymers Limited, based on their role as a del-credere agent for M/s. Reliance Industries Limited (RIL). The Tribunal examined the agreement dated 01.07.2004 between the Petitioner and RIL, which was renewed on 29.06.2017, confirming the Petitioner’s position as a del-credere agent. The agreement dated 06.06.2012 between the Petitioner and the Corporate Debtor further established that the Petitioner extended a credit facility to the Corporate Debtor for purchasing polymers from RIL, thereby affirming the Petitioner’s status as a Financial Creditor.

2. Whether there is a financial debt owed by the Corporate Debtor to the Petitioner:
The Tribunal analyzed whether the debt owed by the Corporate Debtor constituted a financial debt. The agreement dated 06.06.2012 indicated that the Corporate Debtor was liable to repay the Petitioner for the amounts paid to RIL, along with applicable interest. The invoices provided by the Petitioner showed that the Corporate Debtor was the buyer, and the Petitioner was the consignee, corroborating that the Petitioner paid RIL on behalf of the Corporate Debtor. The Corporate Debtor failed to provide evidence of direct payments to RIL, reinforcing the Petitioner’s claim of a financial debt.

3. Whether the Petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 is maintainable:
The Tribunal considered the definitions under Section 5(7) and 5(8) of the IBC to determine the maintainability of the petition. The Petitioner satisfied the conditions of being a Financial Creditor, and the debt owed was disbursed against the consideration for the time value of money, meeting the criteria of a financial debt. The Tribunal found that the Corporate Debtor defaulted on its payment obligations, thus validating the Petitioner’s claim and the maintainability of the petition under Section 7 of the IBC.

Findings:
The Tribunal concluded that the Petitioner is a Financial Creditor, and the debt owed by the Corporate Debtor is a financial debt. The Corporate Debtor’s arguments were not substantiated with evidence, and the Petitioner’s claims were supported by documentary proof. Consequently, the petition was admitted, and the Tribunal declared a moratorium, prohibiting suits or proceedings against the Corporate Debtor, and appointed an Interim Resolution Professional to carry out the functions under the IBC.

Order:
The Tribunal admitted the petition under Section 7 of the IBC, 2016, with the following directions:
- Prohibition of suits or proceedings against the Corporate Debtor.
- Continuation of essential goods or services to the Corporate Debtor.
- The moratorium to be effective from 19th February 2019 until the completion of the Corporate Insolvency Resolution Process or further orders.
- Public announcement of the initiation of the Corporate Insolvency Resolution Process.
- Appointment of Ms. Sandhya Tadla as the Interim Resolution Professional.

Accordingly, the petition was admitted.

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