Judgment initiates Corporate Insolvency Resolution Process, appoints Interim Resolution Professional, and declares moratorium.

The judgment admitted the application for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, appointed an Interim Resolution Professional, declared a moratorium under section 14 of the Insolvency & Bankruptcy Code, and emphasized compliance and communication of the order to the relevant parties. The Tribunal found the Financial Creditor authorized to file the application and established the debt due and payable by the Corporate Debtor, leading to the approval of the application and appointment of the Interim Resolution Professional.

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Issues Involved:
1. Application under section 7 of Insolvency & Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against Corporate Debtor.
2. Authorization of the applicant to file the application.
3. Debt due and payable by the Corporate Debtor.
4. Appointment of Interim Resolution Professional.
5. Declaration of moratorium under section 14 of I&B Code.
6. Compliance and communication of the order.

Analysis:

1. Application under Section 7 of I&B Code:
The judgment pertains to an application (CP 1003/2019) filed by a Financial Creditor, Allahabad Bank, against a Corporate Debtor, Suman Agritech Limited, under section 7 of the Insolvency & Bankruptcy Code, 2016. The application was filed on 11.03.2019, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) due to default on a loan extended by the Bank to the Corporate Debtor.

2. Authorization of the Applicant:
The Corporate Debtor objected to the application, claiming that the applicant was not authorized to file it. However, the Tribunal found that the Assistant General Manager of the Bank, who filed the application, was duly authorized to do so. The debt due and payable by the Corporate Debtor was established through the documents submitted by the Applicant.

3. Debt Due and Payable:
The Applicant provided evidence of the outstanding amount in default, exceeding Rs. 1,00,000, through documents such as the Consumer Credit Information Report, Bank Account Statements, and the notice under section 13(2) of SARFAESI Act. The Tribunal confirmed the debt and default, leading to the admission of the application.

4. Appointment of Interim Resolution Professional:
The Applicant proposed the name of Mr. Navin Khandelwal, a registered insolvency resolution professional, as the Interim Resolution Professional (IRP) to carry out the functions under the I&B Code. The Tribunal approved the appointment of Mr. Khandelwal as the IRP.

5. Declaration of Moratorium:
The Tribunal admitted the petition under section 7 of the I&B Code, declaring a moratorium under section 14. The moratorium included prohibitions on legal proceedings against the Corporate Debtor, asset transfers, enforcement of security interests, and ensured the continuity of essential goods or services to the Corporate Debtor.

6. Compliance and Communication of the Order:
The Tribunal directed immediate communication of the order to the Financial Creditor, Corporate Debtor, and the appointed Interim Resolution Professional. The Registry was instructed to ensure compliance and submit a report promptly.

In conclusion, the judgment admitted the application for initiating CIRP against the Corporate Debtor, appointed an Interim Resolution Professional, declared a moratorium, and emphasized compliance and communication of the order to the relevant parties.

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