Corporate Insolvency Resolution Process initiated, Interim Resolution Professional appointed. Compliance with legal provisions ensured.

The petition for initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor was admitted. The Tribunal declared a moratorium and appointed Mr. Sameer Rastogi as the Interim Resolution Professional (IRP), directing him to fulfill specific duties and report regularly. Compliance was ensured with legal provisions, and no pre-existing dispute was found regarding the unpaid operational debt.

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Issues Involved:
1. Proper service of demand notice.
2. Existence of any dispute regarding the operational debt.
3. Compliance with Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016.
4. Appointment and duties of the Interim Resolution Professional (IRP).
5. Declaration and implications of moratorium.

Issue-wise Detailed Analysis:

1. Proper Service of Demand Notice:
The first issue for consideration is whether the demand notice in Form No. 3 dated 20.05.2019 was properly served. The demand notice was sent to the registered office of the corporate debtor as per the master data, and the copy of the notice was duly acknowledged by the corporate debtor. The corporate debtor did not reply to the demand notice dated 20.05.2019.

2. Existence of Any Dispute Regarding the Operational Debt:
The next issue for consideration is whether the operational debt was disputed by the corporate debtor. The corporate debtor neither filed any reply to the petition nor disputed the liability towards the operational creditor. There was no notice given by the corporate debtor relating to a dispute of the unpaid operational debt. The learned counsel for the respondent admitted the debt and stated that the respondent is not in a position to repay the said debt and has no objection if the petition is admitted.

3. Compliance with Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016:
The provisions of Section 9(5)(i) of the Code stipulate that the Adjudicating Authority shall admit the application if:
- The application is complete.
- There is no payment of the unpaid operational debt.
- The invoice or notice for payment has been delivered by the operational creditor.
- No notice of dispute has been received by the operational creditor.
- There is no disciplinary proceeding pending against any proposed resolution professional.

The Hon'ble Supreme Court in Mobilox Innovations Private Limited Vs. Kirusa Software Private Limited clarified that the adjudicating authority must reject the application if there is a notice of dispute. However, in this case, no such dispute exists, and the application filed in Form No. 5 was found to be complete. The total unpaid operational debt was Rs. 1,25,580/- (inclusive of interest of Rs. 9,729/-). The demand notice was properly delivered, and no pre-existing dispute was proved.

4. Appointment and Duties of the Interim Resolution Professional (IRP):
The operational creditor proposed Mr. Sameer Rastogi as the Interim Resolution Professional (IRP), and his consent was furnished in Form No. 2. The Law Research Associate of the Tribunal checked the credentials of Mr. Sameer Rastogi and found nothing adverse against him. Thus, Mr. Sameer Rastogi was appointed as the IRP with the following directions:
- The term of appointment shall be in accordance with Section 16(5) of the Code.
- The powers of the Board of Directors shall stand suspended, and the management of the affairs shall vest with the IRP.
- The IRP shall prepare a complete list of inventory of assets of the Corporate Debtor.
- The IRP shall act in accordance with the Code and the rules framed thereunder.
- The IRP shall cause a public announcement within three days of initiation of the Corporate Insolvency Resolution Process (CIRP).
- The Corporate Debtor and associated personnel shall extend all cooperation to the IRP.
- The IRP shall constitute a Committee of Creditors and file a report certifying its constitution.
- The IRP shall send regular progress reports to the Tribunal every fortnight.

5. Declaration and Implications of Moratorium:
The Tribunal declared a moratorium in terms of sub-section (1) of Section 14 of the Code, which includes:
- The institution or continuation of suits or proceedings against the corporate debtor.
- Transferring, encumbering, alienating, or disposing of any assets of the corporate debtor.
- Any action to foreclose, recover, or enforce any security interest created by the corporate debtor.
- The recovery of any property by an owner or lessor where such property is occupied by the corporate debtor.

The supply of essential goods or services to the corporate debtor shall not be terminated during the moratorium period. The moratorium shall have effect from the date of the order until the completion of the CIRP or until the Tribunal approves the resolution plan or passes an order for liquidation.

Conclusion:
The petition for initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor was admitted. The Tribunal directed the declaration of moratorium and the appointment of Mr. Sameer Rastogi as the Interim Resolution Professional (IRP). The Tribunal ensured compliance with the necessary legal provisions and directed the IRP to follow specific duties and report regularly to the Tribunal.

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