Winding-up petition transferred to NCLT for unpaid debt dispute: Operational Creditor vs. Operational Debtor

The Delhi High Court transferred a winding-up petition to the National Company Law Tribunal (NCLT) following the constitution of the NCLT. The NCLT admitted an Operational Creditor's petition against an Operational Debtor for an unpaid debt of Rs. 90,23,846, despite the Debtor's claims of defective materials. The NCLT initiated the insolvency process, appointing a resolution professional and mandating cooperation from all parties associated with the Debtor. Failure to cooperate could result in further legal action as per the Insolvency and Bankruptcy Code. The judgment concluded with the disposal of the application in compliance with the Code.

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Issues:
- Transfer of winding up petition to NCLT
- Unpaid debt dispute between Operational Creditor and Operational Debtor
- Compliance with Insolvency and Bankruptcy Code

Transfer of Winding Up Petition to NCLT:
The petition was originally filed before the Delhi High Court for winding up under sections 433 (e), 434, and 439(b) of the Companies Act, 1956. Following the constitution of the NCLT, the High Court transferred the matter to the NCLT as per the notification issued by the Ministry of Corporate Affairs. The NCLT ordered further proceedings and directed the transmission of the petition record to the Principal Bench for adjudication.

Unpaid Debt Dispute:
The Operational Creditor, engaged in the steel and iron goods business, filed a petition against the Operational Debtor for unpaid debt of Rs. 90,23,846. The Operational Debtor alleged that the materials supplied were defective, which the Creditor refuted, providing evidence of quality checks and approvals. Despite demand notices and legal notices for payment, the debt remained unpaid, leading to the NCLT's decision to admit the application and declare a moratorium under Section 13 of the Insolvency and Bankruptcy Code.

Compliance with Insolvency and Bankruptcy Code:
The NCLT admitted the application, initiating the insolvency process against the Operational Debtor. It directed the appointment of an insolvency resolution professional by the Insolvency and Bankruptcy Board of India within ten days. All parties associated with the Corporate Debtor were mandated to cooperate with the Resolution Professional. Failure to cooperate could lead to further legal action as per the provisions of the Code. The judgment concluded with the disposal of the application in line with the Code's requirements.

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