Tribunal Admits Corporate Insolvency Application Against M/s. MFS Intercorp Limited

The Tribunal admitted the application for Corporate Insolvency Resolution Process against M/s. MFS Intercorp Limited due to default on Annual Listing Fees payment. Despite multiple attempts at service, the Respondent did not appear, leading to ex-parte proceedings. The Tribunal initiated the resolution process, imposing a moratorium and appointing an Interim Resolution Professional to manage the affairs of the corporate debtor during insolvency proceedings.

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Issues: Application for Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016

Detailed Analysis:

1. Alleged Default on Annual Listing Fees Payment:
The Applicant, a recognized stock exchange, filed an application to initiate the Corporate Insolvency Resolution Process against the Respondent, M/s. MFS Intercorp Limited, for defaulting on the payment of Annual Listing Fees (ALF) amounting to Rs. 8,27,559/-, including interest and applicable taxes. The Applicant detailed the transactions leading to the application, highlighting the listing agreements executed between the parties, the obligations of the Respondent to pay ALF as per the agreements, and the default in payment by the Respondent.

2. Operational Debt and Default:
The Applicant claimed that the operational debt of Rs. 8,27,559/- accrued on 01.04.2015 and continued to accrue until the date of the demand notice. Despite the Respondent making payments for ALF until the financial year 2014-2015, the Applicant alleged that the Respondent failed to pay any further amounts, leading to the default. The Applicant issued a demand notice under section 8(1) of the Insolvency and Bankruptcy Code, 2016, which was returned as undelivered, indicating the Respondent's non-compliance.

3. Procedural Compliance and Ex-Parte Proceedings:
The Tribunal noted that the Applicant fulfilled all conditions under Section 9 of the Code, leading to the issuance of notices to the Respondent through various modes. However, despite multiple attempts at service, the Respondent did not appear during the hearings. The Tribunal proceeded ex-parte against the Respondent on 24.09.2019 and subsequently admitted the petition for initiating the Corporate Insolvency Resolution Process due to the established debt and default by the Respondent.

4. Initiation of Corporate Insolvency Resolution Process:
With the Respondent being absent during hearings and failing to defend against the Applicant's claims, the Tribunal admitted the petition and initiated the Corporate Insolvency Resolution Process against the Respondent with immediate effect. A moratorium was imposed under Section 14 of the Code, restricting various actions against the Respondent's assets and legal proceedings, ensuring the protection of the corporate debtor during the resolution process.

5. Appointment of Interim Resolution Professional:
The Tribunal confirmed the appointment of Ms. Dipti Mehta as the Interim Resolution Professional proposed by the Applicant. Ms. Mehta was tasked with taking necessary steps as per the provisions of the Code, including filing a report within 30 days before the Tribunal. The appointment aimed to facilitate the resolution process and manage the affairs of the corporate debtor during the insolvency proceedings.

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