Tribunal Admits Application for Corporate Insolvency Resolution Process

The Tribunal admitted the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for Corporate Insolvency Resolution Process. A financial debt exceeding Rupees One Crore was found due and payable by the Corporate Debtor to the Financial Creditor. The evidence presented established the default by the Corporate Debtor in repayment. The appointment of Mr. Pradeep Kumar Goenka as the Interim Resolution Professional was approved, initiating the Corporate Insolvency Resolution Process and declaring a moratorium. The Resolution Professional was tasked with efficiently conducting the process, with instructions given to communicate the order to relevant parties and provide a progress report later.

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Issues:
1. Application under Section 7 of Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process.
2. Proof of debt due and payable by the Corporate Debtor.
3. Default by the Corporate Debtor in paying the debt.
4. Appointment of Interim Resolution Professional.

Analysis:

Issue 1: Application under Section 7 of Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process
The Financial Creditor filed an application under Section 7 against the Corporate Debtor for defaulting on a financial debt of over Rupees One Crore. The Financial Creditor provided evidence of disbursing a corporate loan to the Corporate Debtor, triggering the need for Insolvency Resolution Process.

Issue 2: Proof of debt due and payable by the Corporate Debtor
The Financial Creditor substantiated the debt claim by presenting a certified bank statement showing the transfer of Rupees One Crore to the Corporate Debtor's account as a loan. The Corporate Debtor failed to refute this evidence, leading to the conclusion that a financial debt was indeed due and payable by the Corporate Debtor.

Issue 3: Default by the Corporate Debtor in paying the debt
The Corporate Debtor, through its director, contested the liability to repay the loan amount, demanding proof of disbursal. However, the evidence presented by the Financial Creditor clearly demonstrated the transfer of funds, establishing the default by the Corporate Debtor in repayment of the financial debt.

Issue 4: Appointment of Interim Resolution Professional
The Financial Creditor proposed the appointment of Mr. Pradeep Kumar Goenka as the Interim Resolution Professional. The Tribunal found the application to be defect-free and approved the appointment, initiating the Corporate Insolvency Resolution Process and declaring a moratorium as per the provisions of the Insolvency and Bankruptcy Code, 2016.

The Tribunal admitted the application, declared a moratorium, and appointed Mr. Pradeep Kumar Goenka as the Resolution Professional. The order outlined the restrictions during the moratorium period and directed the Resolution Professional to conduct the Corporate Insolvency Resolution Process efficiently. The Registry was instructed to communicate the order to all relevant parties, with a follow-up progress report scheduled for a later date.

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