2019 (2) TMI 1883 - Tri - Insolvency and Bankruptcy

Petition for Corporate Insolvency Resolution Process admitted, creditor claim accepted, moratorium ordered

The petition under Section 9 of the Insolvency and Bankruptcy Code seeking Corporate Insolvency Resolution Process against the Corporate Debtor was ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - unpaid Operational Debt - existence of debt and dispute or not - HELD THAT:- Petitioner issued demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 read with Rule 5 of the Insolvency Rules in respect of unpaid Operational Debt due to him on 22.10.2018 by speed post and it was received by the Respondent on 25.10.2018. Respondent issued reply notice dated 20.11.2018 stating that provided some reasonable time may be given for payment and he has unable to payment right now. Respondent requested not to initiate proceeding under Section 8 of the I&B Code. Unpaid amount - HELD THAT:- The amount claimed by the petitioner represents the commission due to him for the services rendered by him in supplying and arranging for dispatch of the products manufactured by the Respondent - Therefore, the amount claimed is within the meaning of Operational Debt. Petitioner filed copies of invoices in proof of Operational Debt due to him. Petitioner also filed Ledger Extract. Moreover, respondent also admitted that Operational Debt remain unpaid. Therefore, the amount claimed is within the meaning of Operational Debt. Petitioner filed copies of invoices in proof of Operational Debt due to him. Petitioner also filed Ledger Extract. Moreover, respondent also admitted that Operational Debt remain unpaid - this petition deserves to be admitted. Petition admitted - moratorium declared. Issues:- Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process.- Agreement between Operational Creditor and Corporate Debtor for supply of goods.- Unpaid operational debt and default period.- Demand notice issued under Section 8 of the Insolvency and Bankruptcy Code.- Admittance of claim by the Respondent.- Appointment of Interim Resolution Professional.- Order of moratorium under Section 13(1)(a) of the Insolvency and Bankruptcy Code.Analysis:- The petitioner, styling himself as an Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code seeking Corporate Insolvency Resolution Process against the Corporate Debtor, based on an agreement for the supply of cosmetic goods in Uttar Pradesh.- The agreement outlined the responsibilities of the parties, with the Operational Creditor arranging for supply, dispatch, and payment collection on behalf of the Corporate Debtor, with a commission structure and provisions for late payment interest.- The Operational Creditor claimed an amount due of Rupees 4,27,960 from the Respondent, with specific details of unpaid bills and corresponding due dates provided in the petition.- A demand notice was issued under Section 8 of the Insolvency and Bankruptcy Code, to which the Respondent replied requesting time for payment, without disputing the debt.- The Respondent admitted the claim during the proceedings, leading to the admission of the petition by the Authority, considering the Operational Debt claimed by the Petitioner as valid and unpaid.- An Interim Resolution Professional was appointed by the Authority to oversee the Corporate Insolvency Resolution Process.- A moratorium was ordered under Section 13(1)(a) of the Insolvency and Bankruptcy Code, prohibiting various actions against the company, with specific provisions to ensure the continuity of essential goods and services to the Corporate Debtor during the moratorium period.- The Authority directed the IRP to cause a public announcement of the Corporate Insolvency Resolution Process and communicated the order to all relevant parties, listing the matter for further report on a specified date.