Operational Debt Validated, Moratorium Declared: Insolvency Proceedings Initiated

The Tribunal admitted the petition under Section 9 of The Insolvency and Bankruptcy Code, 2016, finding the operational debt due to the applicant valid. The Tribunal appointed an Interim Resolution Professional and declared a moratorium to protect the corporate debtor from certain actions. The Registry was directed to inform the Registrar of Companies to facilitate the corporate insolvency resolution process.

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Issues:
1. Application under Section 9 of The Insolvency and Bankruptcy Code, 2016.
2. Operational debt due to the applicant.
3. Compliance with statutory requirements under the Code.
4. Appointment of Interim Resolution Professional.
5. Declaration of moratorium and its implications.

Issue 1: Application under Section 9 of The Insolvency and Bankruptcy Code, 2016:
The petitioner, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against the respondent, a corporate debtor, for non-payment of dues amounting to Rs. 7,25,707. The petitioner fulfilled the necessary requirements under the Code, including issuing demand notices and providing documentary evidence to support the claim.

Issue 2: Operational debt due to the applicant:
The Tribunal found that the operational debt was due to the applicant, as established by the petitioner through the submission of relevant documents and evidence. The respondent failed to respond or dispute the claim, leading to the conclusion that the debt was valid and payable by the corporate debtor.

Issue 3: Compliance with statutory requirements under the Code:
The Tribunal referred to the Supreme Court judgment in Mobilox Innovative Private Limited vs. Kirusa Software Private Limited, outlining the conditions to be met for admitting an application under Section 9 of the Code. It was determined that the operational creditor met all necessary conditions, and the debt was not barred by any law of limitation or other legal restrictions.

Issue 4: Appointment of Interim Resolution Professional:
In accordance with Section 13 of the Code, the Tribunal directed the appointment of an Interim Resolution Professional to initiate the corporate insolvency resolution process. CA Kedar Ramratan Laddha was appointed as the interim resolution professional to oversee the proceedings.

Issue 5: Declaration of moratorium and its implications:
The Tribunal declared a moratorium to prohibit certain actions against the corporate debtor, including the institution of suits, transfer of assets, and recovery of property. The moratorium was to remain in effect until the completion of the corporate insolvency resolution process or until further orders were passed.

In conclusion, the Tribunal admitted the petition, declared a moratorium, appointed an Interim Resolution Professional, and directed communication of the order to relevant parties. The Registry was instructed to inform the Registrar of Companies about the corporate insolvency resolution process to prevent any actions that could hinder the resolution proceedings.

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