Tribunal admits insolvency petition against Ganga Advisory for unpaid loans

The Tribunal admitted the petition filed by M/S. Pani Logistics under Section 7 of The Insolvency and Bankruptcy Code, 2016 against M/S. Ganga Advisory Private Limited for unpaid loan amounts. The application was found complete, and a moratorium was declared to prevent actions against the corporate debtor. The moratorium would be in place until the resolution process is completed or a liquidation order is approved. No costs were awarded, and the order was communicated to all relevant parties.

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Issues:
- Application under section 7 of The Insolvency and Bankruptcy Code, 2016 seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code.
- Unpaid loan amount by the corporate debtor.
- Admission of debt by the corporate debtor.
- Completeness of the application under Section 7(2) of the Code.
- Decision on admission of the petition and declaration of moratorium.

Analysis:
- The petitioner, M/S. Pani Logistics, filed a petition under section 7 of The Insolvency and Bankruptcy Code, 2016 seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code. The petitioner, a proprietary firm, had granted an unsecured loan to the respondent, M/S. Ganga Advisory Private Limited, which remained unpaid. The outstanding amount was detailed in the application, and the respondent admitted to the debt in an affidavit.

- The petitioner provided evidence of the debt, including bank statements, ledgers, and communication with the proposed Interim Resolution Professional. The application was filed correctly in the prescribed form, and the proposed Resolution Professional was identified. The existence of default was confirmed, and the application was deemed complete under Section 7(2) of the Code.

- The Tribunal found that the petitioner met all the requirements of Section 7 of the Code, and therefore, the petition was admitted. A moratorium was declared to prohibit various actions against the corporate debtor, including suits, asset transfers, enforcement of security interests, and recovery of property. The order specified that essential services to the Corporate Debtor should not be terminated during the moratorium period.

- The moratorium was to remain in effect until the completion of the corporate insolvency resolution process or until the approval of a resolution plan or liquidation order. The petition was disposed of with no costs awarded, and the order was communicated to all relevant parties, including the Applicant, Financial Creditor, Corporate Debtor, and the Interim Insolvency Resolution Professional.

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