2018 (6) TMI 1703 - Tri - Insolvency and Bankruptcy

Company Petition Admitted: Insolvency & Bankruptcy Code 2016 Section 9 | Moratorium & Resolution Professional

The Tribunal admitted the Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to the Corporate Debtor's default in repaying ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- The Operational Creditor has filed rejoinder dated 8th November, 2017 to the statement of objections filed by the corporate debtor and vehemently refuted the false allegations made against the Applicant and also produced e-mails wherein the Corporate Debtor admitted its liability to pay the outstanding amount and sought for extension of time for the payment of the same. The Operational Creditor further stated that despite reasonable time granted by the Applicant, the corporate Debtor failed to clear the dues. Petition is admitted - moratorium declared. Issues:1. Default in repayment by the Corporate Debtor2. Filing of Company Petition by Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code, 20163. Dispute regarding outstanding payments and mismanagement of funds4. Appointment of Interim Resolution ProfessionalIssue 1: Default in repayment by the Corporate DebtorThe Company Petition was filed by the Operational Creditor, alleging that the Corporate Debtor had defaulted in repaying a sum of Rupees 36,83,660.30. The Operational Creditor had provided services to the Corporate Debtor, raised invoices, but faced delays and non-payment from the Corporate Debtor, leading to the filing of the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016.Issue 2: Filing of Company Petition by Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016The Operational Creditor, a global leader in HR services, entered into an agreement with the Corporate Debtor for contract staffing. Despite raising invoices and sending a demand notice, the Corporate Debtor failed to clear the dues, prompting the Operational Creditor to file the petition seeking admission, declaration of moratorium, and appointment of an Interim Resolution Professional.Issue 3: Dispute regarding outstanding payments and mismanagement of fundsThe Corporate Debtor disputed the claims, alleging mismanagement and misappropriation of funds by the Operational Creditor's recruited staff. The Corporate Debtor accused the Operational Creditor of filing a false petition without addressing the underlying issues of fund mismanagement. The Operational Creditor refuted these allegations and provided evidence of the Corporate Debtor admitting liability to pay the outstanding amount but failing to do so.Issue 4: Appointment of Interim Resolution ProfessionalThe Tribunal admitted the petition under Section 9 of the Code, declaring a moratorium and appointing an Interim Resolution Professional. The order prohibited suits against the Corporate Debtor, ensured continuity of essential services, and specified the moratorium period. Ms. Medha Kulkarni was appointed as the Interim Resolution Professional to oversee the insolvency resolution process.In conclusion, the judgment addressed the default in repayment, the filing of the Company Petition, the dispute over outstanding payments and fund mismanagement, and the appointment of an Interim Resolution Professional to manage the insolvency resolution process effectively.