Tribunal admits application under Insolvency and Bankruptcy Code for default in payment.

The Tribunal admitted the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by an Operational Creditor against a Corporate Debtor for default in payment of outstanding debt. The charges were categorized as operational debt, leading to the appointment of an Interim Resolution Professional and the initiation of the Corporate Insolvency Resolution Process. The Tribunal directed the IRP to convene a Committee of Creditors and conduct the resolution process in a time-bound manner, emphasizing the importance of adhering to regulatory requirements.

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Issues Involved:
Initiating Corporate Insolvency Resolution Process under section 9 of Insolvency and Bankruptcy Code, 2016 against the corporate debtor for default in payment of outstanding debt.

Detailed Analysis:

1. Application under Section 9 of IBC, 2016: The application was filed by an Operational Creditor against a Corporate Debtor for default in payment of outstanding debt amounting to Rs. 54,73,536. The debt arose from a lease agreement for a commercial property, with outstanding lease rent and other charges like electricity, diesel, sewer, and water charges. The Operational Creditor provided services falling under the definition of provisions of Services as per Section 5(21) of IBC, 2016. The Corporate Debtor disputed the categorization of these charges as operational debt, citing previous judgments. However, the Tribunal rejected this contention, emphasizing that the charges clearly constituted services and were eligible for consideration as operational debt.

2. Admission of Application: The Tribunal found that the application was complete and defect-free, with proper service of notice under Section 8 of IBC, 2016. As per the provisions, the application was admitted, and a moratorium was declared. The Tribunal ordered the appointment of an Interim Resolution Professional (IRP) from the panel approved by IBBI. The moratorium prohibited various actions against the Corporate Debtor and ensured the continuation of essential goods or services supply during the process.

3. Resolution Process: The Tribunal directed the IRP to ascertain creditors' particulars, convene a Committee of Creditors, and conduct the Corporate Insolvency Resolution Process (CIRP) in a time-bound manner. The Operational Creditor was instructed to pay an advance fee to the IRP as per regulations. The matter was listed for a progress report filing, and the Registry was directed to communicate the order to all concerned parties.

This detailed analysis highlights the key aspects of the judgment, including the grounds for initiating the insolvency resolution process, the admission of the application, the moratorium declared, and the procedural steps to be followed during the resolution process.

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