Tribunal recognizes operational debt, appoints Insolvency Resolution Professional for construction company

The tribunal admitted the operational creditor's application under Section 9 of the Insolvency and Bankruptcy Code, recognizing the outstanding amount claimed from the construction and development company as valid operational debt. Dismissing the debtor's dispute regarding professional fees, the tribunal found the demand notice to be validly served and appointed an Insolvency Resolution Professional to oversee the insolvency resolution process, imposing a moratorium on legal actions against the debtor.

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Issues:
1. Claim of operational debt under the Insolvency and Bankruptcy Code.
2. Dispute regarding payment of professional fees.
3. Validity of demand notice and response by the debtor.
4. Appointment of an Insolvency Resolution Professional and initiation of the insolvency resolution process.

Claim of Operational Debt:
The petitioner, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code claiming an outstanding amount of Rs. 1,16,41,500 from the debtor, a construction and development company. The petitioner provided professional services to the debtor, raised invoices, and issued a demand notice after non-payment.

Dispute Regarding Payment of Professional Fees:
The debtor argued that the claimed amount was in dispute as the contract with Tata Housing Development Corporation Limited (THDCL) was revoked, leading to the project's failure. The debtor contended that the petitioner was only entitled to fees upon successful completion of the agreement with THDCL, which did not occur due to THDCL's withdrawal.

Validity of Demand Notice and Response:
The tribunal reviewed the submissions and emails exchanged between the parties. It noted that the debtor had acknowledged the petitioner's fees on multiple occasions, and the demand notice was duly served. The debtor's argument of dispute was dismissed as it had not raised the issue earlier and appeared to delay proceedings.

Appointment of an Insolvency Resolution Professional:
After finding merit in the petitioner's claim and deeming the debt as operational under the Code, the tribunal admitted the application. An Insolvency Resolution Professional was appointed to conduct the insolvency resolution process, initiating a moratorium on legal actions against the debtor. The IRP was directed to provide progress reports and comply with the Code's provisions.

This detailed analysis of the judgment covers the issues involved and the tribunal's findings on each aspect of the case, including the claim of operational debt, dispute over professional fees, validity of the demand notice, and the subsequent appointment of an Insolvency Resolution Professional for the insolvency resolution process.

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