Petition Revived for Non-Compliance with Settlement Terms: Tribunal Appoints Resolution Professional

The petition was revived due to non-compliance with the amicable settlement terms, particularly dishonored post-dated cheques. The Tribunal appointed an Interim Resolution Professional, declared a moratorium, and directed the Financial Creditor to deposit funds. Compliance with relevant sections of the Insolvency and Bankruptcy Code was noted. The ex-management was instructed to provide documents, and complaints against financial creditors were addressed to prevent injustice to the corporate debtor.

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Issues:
1. Non-compliance with terms of amicable settlement leading to revival of the petition.
2. Dishonored post-dated cheques and revival of proceedings.
3. Compliance with Section 7 and Section 14 of the Insolvency and Bankruptcy Code.
4. Appointment of Interim Resolution Professional and declaration of moratorium.
5. Direction for public announcement and deposit by Financial Creditor.
6. Obligation of ex-management to provide documents and information.
7. Addressing complaints against financial creditors regarding claims.

Issue 1: Non-compliance with terms of amicable settlement leading to revival of the petition
The application for revival of the petition was filed due to the non-compliance with the terms of the amicable settlement, specifically regarding dishonored post-dated cheques issued against the payment claim made by the petitioner. The petitioner sought revival of the petition due to this non-compliance.

Issue 2: Dishonored post-dated cheques and revival of proceedings
The post-dated cheques issued were dishonored, establishing the default and acknowledging the amount sought to be paid. The Tribunal revived the proceedings in CP. No. (IB)281 (PB)/2019 based on this default, appointing an Interim Resolution Professional to act in accordance with the insolvency proceedings.

Issue 3: Compliance with Section 7 and Section 14 of the Insolvency and Bankruptcy Code
The Tribunal found compliance with Section 7 (2) and Section 7 (5) of the Insolvency and Bankruptcy Code, as discussed in a previous order, leading to the admission of the present petition. Additionally, a moratorium was declared in accordance with Section 14 of the Code.

Issue 4: Appointment of Interim Resolution Professional and declaration of moratorium
An Interim Resolution Professional was appointed to handle the insolvency proceedings, with directions for a public announcement and a deposit of funds by the Financial Creditor to meet expenses. The Tribunal declared a moratorium, specifying exceptions for certain transactions and supplies of essential goods or services.

Issue 5: Direction for public announcement and deposit by Financial Creditor
The Financial Creditor was directed to deposit a specified sum with the Interim Resolution Professional to cover expenses and perform assigned functions. Additionally, the ex-management was obligated to provide all necessary documents and information within a week from the admission of the petition.

Issue 6: Obligation of ex-management to provide documents and information
The ex-management was directed to provide all documents and furnish necessary information to the Interim Resolution Professional within a stipulated timeframe, failing which coercive steps would be taken as per Section 19 of the Code.

Issue 7: Addressing complaints against financial creditors regarding claims
The Tribunal acknowledged complaints against financial creditors regarding alleged inflated claims and exorbitant interest rates. It emphasized the role of Resolution Professionals in addressing such issues to prevent injustice to the corporate debtor. The office was directed to communicate the order to relevant parties promptly for compliance and updating of records.

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