2019 (12) TMI 1392 - Tri - Insolvency and Bankruptcy

Tribunal admits application for Corporate Insolvency Resolution Process under Insolvency and Bankruptcy Code

Jajoo Exim Private Limited Versus Parth Concast Limited

Jajoo Exim Private Limited Versus Parth Concast Limited - TMI Issues:Application under Section 9 of Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process initiation against Respondent.Analysis:1. The Applicant, an Operational Creditor, filed an application under Section 9 of the IBC, 2016 against the Respondent, seeking to initiate the Corporate Insolvency Resolution Process due to non-payment of dues.2. The Operational Creditor, M/s. Jajoo Exim Private Limited, supplied quartz powder to the Respondent, M/s. Parth Concast Limited, with outstanding dues of Rs. 4,04,540/- as of 25.07.2016, which the Respondent failed to pay within the stipulated time.3. The Operational Creditor issued a demand notice under Section 8 of the IBC, 2016 to the Respondent, who replied denying the debt due to alleged inferior quality of supplied materials causing financial losses.4. The Operational Creditor refuted the Respondent's claims, asserting the quality of supplied quartz powder was as per requirements, and the Respondent had not raised any quality issues earlier.5. The Tribunal noted the absence of a pre-existing dispute and admitted the application under Section 9, finding the Operational Creditor entitled to claim its dues with no merit in the Respondent's defense.6. The Tribunal appointed an Interim Resolution Professional, Mr. Sourabh Malpani, directing the Operational Creditor to deposit funds for the IRP's expenses and imposed a moratorium on the Respondent as per IBC provisions.7. The Registry was instructed to notify all relevant parties about the order, including updating the status of the Corporate Debtor on the Registrar of Companies' website within a specified timeframe.