Tribunal admits insolvency application against listed company for defaulting on listing fee

The Tribunal admitted the application under section 9 of the Insolvency and Bankruptcy Code, 2016, filed by a recognized stock exchange against a healthcare consulting listed company for defaulting on the Annual Listing Fee. The Tribunal established the default, appointed an Insolvency Resolution Professional, directed a deposit of Rs. 2 lakhs for expenses, and imposed a moratorium under Section 14 of the Code to protect the Corporate Debtor during the insolvency resolution process.

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Issues:
- Application under section 9 of Insolvency and Bankruptcy Code, 2016
- Default in payment of operational debt by the Corporate Debtor
- Jurisdiction of the Tribunal
- Appointment of Insolvency Resolution Professional
- Direction to deposit a sum with the Interim Resolution Professional
- Moratorium under Section 14 of the Code

Analysis:
The application was filed under section 9 of the Insolvency and Bankruptcy Code, 2016, by the Applicant, a recognized stock exchange, against the Corporate Debtor, a listed company engaged in healthcare consulting. The Applicant claimed that the Corporate Debtor failed to pay the Annual Listing Fee (ALF) from FY 2014-15 onwards, amounting to a total outstanding of Rs. 12,56,428. Despite issuing a demand notice, the Corporate Debtor did not respond or make the payment, leading to the application being filed on 14.08.2019, well within the limitation period.

Regarding jurisdiction, since the registered office of the Corporate Debtor was in Delhi, the Tribunal had the authority to entertain and try the application. The Tribunal found the application complete and established the default in payment, leading to its admission. The Tribunal also named an Insolvency Resolution Professional, subject to certain conditions, to oversee the Corporate Insolvency Resolution Process (CIRP).

The Tribunal directed the Operational Creditor to deposit Rs. 2 lakhs with the Interim Resolution Professional to cover expenses. This amount was to be adjusted by the Committee of Creditors and refunded to the Operational Creditor. The admission of the application triggered a moratorium under Section 14 of the Code, prohibiting certain actions against the Corporate Debtor. The Tribunal ordered communication of the decision to the parties involved and directed compliance with necessary updates to the Registrar of Companies.

In conclusion, the Tribunal admitted the application, appointed an Insolvency Resolution Professional, directed a deposit for expenses, and imposed a moratorium to protect the Corporate Debtor during the insolvency resolution process. The detailed analysis covered the legal grounds, procedural aspects, and implications of the judgment in the context of insolvency proceedings under the Code.

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