2020 (1) TMI 1440 - Tri - Insolvency and Bankruptcy

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

BSE Limited Versus STG Lifecare Limited

The Tribunal admitted the application under section 9 of the Insolvency and Bankruptcy Code, 2016, filed by a recognized stock exchange against a ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - application filed by BSE - notice of service of dispute - HELD THAT:- The Corporate Debtor has neither appeared in the matter nor replied to the application and the matter was proceeded exparte on 19.09.2019 - The Applicant has filed an affidavit under section 9(3)(b) affirming that no notice of dispute has been given by the Corporate debtor relating to dispute of the unpaid operational debt. The Applicant has filed the bank certificate of HDFC Bank dated 23.01.2019 as required u/s. 9(3)(c) of I&B Code, affirming that in respect of the amount claimed or any part thereof, the Applicant has not received nor had any person, on its behalf had received in any manner the amount due to them - The application is complete as per the requirements of section 9 of the code. The invoice was raised on 01.04.2017 and the application is filed on 14.08.2019 which is within the period of limitation - The registered office of corporate debtor is situated in Delhi and therefore this Tribunal has jurisdiction to entertain and try this application. The present application is complete and perusing the documents on records it goes beyond doubt that the Applicant is entitled to claim its dues, establishing the default in payment of the operational debt, which has remined uncontroverted which amounts to passive admission - Application admitted - moratorium declared. 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 CodeAnalysis: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.