2018 (7) TMI 2232 - Tri - Insolvency and Bankruptcy

Insolvency case: Moratorium granted, Interim Resolution Professional appointed

The application under section 9 of the Insolvency and Bankruptcy Code, 2016 was admitted against the corporate debtor due to default in payment of ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - ex-parte order - HELD THAT:- The applicant has filed an affidavit of service deposing that steps for service have been taken in terms of the directions given by the Bench vide order dated 23.05.2018. Notice from the bench has also been send by the Email dated 22.05.2018. However neither the director nor any other person has appeared or filed reply before this court. Since the amount claimed by Operational Creditor has not been disputed by the Respondent despite being given adequate opportunity to file reply. The respondent has been proceeded ex-parte vide order dated 3 1.05.2018. The present application is complete and the Operational Creditor is entitled to claim its dues towards the goods supplied to the corporate debtor and there has been a default in payment of the operational debt. Therefore, on fulfilment of the requirements of section 9 (5) (i) (a) to (e) of the Code, the present application is admitted. Application admitted - moratorium declared. Issues:1. Application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency process.2. Claim of outstanding dues against the Corporate Debtor for supplied goods.3. Ex-parte proceedings due to non-response by the Respondent.4. Admission of the application based on default in payment of operational debt.5. Issuance of moratorium under section 14 of the Code.6. Appointment of an Interim Resolution Professional.Analysis:1. The application was filed under section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency process against the Respondent corporate debtor. The applicant, a trading division of a company, supplied goods to the Respondent for a housing project, and outstanding dues of Rs. 1,89,29,411/- were claimed. The Respondent did not dispute the amount despite receiving goods and notices.2. Due to the non-response from the Respondent, ex-parte proceedings were initiated, and the Tribunal found the application complete and admitted it based on the default in payment of operational debt. The Operational Creditor was deemed entitled to claim its dues, leading to the admission of the application under section 9 of the Code.3. A moratorium was issued under section 14 of the Code, prohibiting various actions against the corporate debtor, including legal proceedings and asset transfers. Essential goods or services supply to the corporate debtor during the moratorium period was protected, and specific transactions exempted from the moratorium were highlighted.4. An Interim Resolution Professional was appointed to oversee the insolvency resolution process. Mr. Dinesh Chandra Agarwal was appointed as the Interim Resolution Professional, with no pending disciplinary proceedings against him. The Interim Resolution Professional was directed to perform functions as per the Code diligently.5. The petitioner was directed to pay a sum of Rupees two lakhs to the Interim Resolution Professional for expenses. This payment was subject to adjustment by the Committee of Creditors and was to be communicated to relevant parties within seven days from the date of the order.This detailed analysis covers the key issues addressed in the judgment, outlining the legal proceedings and decisions made by the Tribunal regarding the insolvency application and related matters.