Company Petition Granted for CIRP Against Corporate Debtor | Insolvency & Bankruptcy Code

The court granted the Company Petition filed by M/s Harindera Cargo Carriers Pvt. Ltd, an Operational Creditor, to initiate Corporate Insolvency Resolution Process (CIRP) against Aster Building Solutions Private Ltd, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor failed to pay outstanding invoices totaling &8377; 35,42,308/- despite reminders and a Demand Notice. An Interim Resolution Professional (IRP) was appointed to oversee the resolution process in compliance with the Insolvency and Bankruptcy Code, 2016.

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Issues Involved:
Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of Insolvency and Bankruptcy Code, 2016 based on unpaid invoices and non-payment by the Corporate Debtor.

Analysis:
The Company Petition (CP) was filed by M/s Harindera Cargo Carriers Pvt. Ltd as the Operational Creditor seeking to initiate CIRP against Aster Building Solutions Private Ltd, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor transported goods for the Corporate Debtor and raised invoices for the same. Despite granting a 90-day credit period, the Corporate Debtor failed to pay the outstanding amount of &8377; 29,51,923/- along with interest, totaling &8377; 35,42,308/-. A Demand Notice was issued, but the Corporate Debtor did not settle the dues, leading to the filing of the Company Petition.

The Adjudicating Authority heard the case on multiple dates and considered the submissions made by Ms. Siri Preethi Duggirala, Advocate, along with Ms. A. Sandhya Rani, Counsel for the Petitioner. The Company petition was filed under Section 9 of the IBC, and an Interim Resolution Professional (IRP) was proposed by the Petitioner. Ms. A. Padmasri, a registered insolvency professional, was nominated as the IRP, who submitted the necessary communication in Form No.2 as required, confirming her registration with ICSI Insolvency Professional.

In conclusion, the judgment highlighted the non-payment by the Corporate Debtor despite repeated reminders and the failure to settle the outstanding invoices, leading to the initiation of CIRP by the Operational Creditor. The appointment of an IRP was proposed to oversee the resolution process in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

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