Tribunal admits petition for Corporate Insolvency Resolution Process, appoints Interim Resolution Professional.

The tribunal admitted the petition to initiate the Corporate Insolvency Resolution Process against the corporate debtor, M/s. Datawind Innovations Pvt. Ltd. The tribunal directed the declaration of a moratorium and appointed Mr. Arvind Kumar as the Interim Resolution Professional. The tribunal emphasized compliance with the Insolvency and Bankruptcy Code, directing the IRP to manage the debtor's affairs, make public announcements, and constitute a Committee of Creditors, with progress reports to be submitted regularly to the tribunal.

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Issues Involved:
1. Proper service of demand notice.
2. Dispute of operational debt by the corporate debtor.
3. Compliance with Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016.
4. Appointment of Interim Resolution Professional (IRP).
5. Declaration of moratorium.

Issue-wise Detailed Analysis:

1. Proper Service of Demand Notice:
The first issue considered was whether the demand notice in Form No. 3 dated 09.05.2018 was properly served. The demand notice was sent to the address as per the master data, which showed the registered office at 94, City Centre, Opposite Guru Nanak Bhawan, Amritsar, Punjab-143001. The tribunal confirmed that the demand notice was properly delivered.

2. Dispute of Operational Debt by the Corporate Debtor:
The next issue was whether the operational debt was disputed by the corporate debtor. The corporate debtor, in its reply to the demand notice dated 27.05.2018, disputed the liability, citing delays of 428 days in shipments and alleging inferior and unprofessional services provided by the operational creditor. The tribunal referred to the Supreme Court judgment in Mobilox Innovations Private Limited Vs. Kirusa Software Private Limited, which states that the adjudicating authority must reject the application if a notice of dispute is received, provided the dispute is not spurious, hypothetical, or illusory. The tribunal found that the corporate debtor had not substantiated its claims of dispute effectively.

3. Compliance with Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016:
The tribunal examined whether the application complied with Section 9(5)(i) of the Code, which includes conditions such as the completeness of the application, non-payment of the unpaid operational debt, delivery of invoice or notice for payment, absence of notice of dispute, and no disciplinary proceedings against the proposed resolution professional. The tribunal found the application complete, with an unpaid operational debt of Rs. 86,07,122/-. The corporate debtor's reply did not effectively dispute the liability, and no pre-existing dispute was proven.

4. Appointment of Interim Resolution Professional (IRP):
The operational creditor had not proposed the name of an Interim Resolution Professional. As per Section 16(3)(a) of the Code, the tribunal made a reference to the Board for recommending an insolvency professional. The tribunal received a panel of resolution professionals and appointed Mr. Arvind Kumar as the Interim Resolution Professional, after verifying his credentials.

5. Declaration of Moratorium:
The tribunal declared a moratorium as per Section 14 of the Code, which includes:
- Suspension of suits or proceedings against the corporate debtor.
- Restriction on transferring or disposing of any assets of the corporate debtor.
- Prohibition on foreclosure or enforcement of any security interest.
- Prevention of recovery of any property by an owner or lessor.

The moratorium will be effective from the date of the order until the completion of the Corporate Insolvency Resolution Process or approval of a resolution plan or an order for liquidation.

Conclusion:
The tribunal admitted the petition for initiating the Corporate Insolvency Resolution Process against the corporate debtor, M/s. Datawind Innovations Pvt. Ltd., and directed the moratorium and appointment of the Interim Resolution Professional, Mr. Arvind Kumar. The tribunal emphasized compliance with the Code and directed the IRP to manage the corporate debtor's affairs, make public announcements, and constitute a Committee of Creditors. Regular progress reports were mandated to be sent to the tribunal.

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