2019 (1) TMI 1986 - Tri - Insolvency and Bankruptcy

Tribunal Admits Company Petition for Insolvency due to Non-Payment |

The Tribunal admitted the Company Petition under section 9 of the Insolvency & Bankruptcy Code, 2016, filed by the Operational Creditor against the ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt ad dispute or not - HELD THAT:- On the basis of the evidences on record the Operational Creditor has established that the Corporate Debtor is under an obligation to pay for pending Operational Dues aggregating to 4,03,750/- along with interest @ 18% p.a. through two invoices. The said amount is due and a default has also occurred. Considering these facts and circumstances, in my humble opinion the nature of the Debt is an ‘Operational Debt’ as defined under section 5 (21) of the Definitions under The Code. There is a “Default” as defined under section 3 (12) of The Code on the part of the Debtor. The conduct of the Corporate Debtor, despite being served with the notice for intimation of hearings, is evident of the fact that he has admitted its liability - the Operational Creditor has not received the outstanding Debt from the Debtor and that the formalities as prescribed under The Code have been completed by the Operational Creditor. This Petition deserves ‘Admission’ specially wherein the Debtor is accepting its default - Petition admitted - moratorium declared. Issues:- Company Petition under section 9 of the Insolvency & Bankruptcy Code, 2016.- Non-payment of Operational Dues by Corporate Debtor.- Application for Corporate Insolvency Resolution Process.- Default on payment as per End User License Agreement.- Appointment of Interim Resolution Professional.Analysis:1. Company Petition under section 9 of the Insolvency & Bankruptcy Code, 2016:The Tribunal received a Company Petition under section 9 of the Insolvency & Bankruptcy Code, 2016, filed by the Broadcast Audience Research Council (Operational Creditor) against Mi Marathi Media Limited (Corporate Debtor) for the initiation of Corporate Insolvency Resolution Process due to non-payment of Operational Dues amounting to Rs. 4,03,750/- along with interest.2. Non-payment of Operational Dues by Corporate Debtor:The Operational Creditor provided services to the Corporate Debtor under an End User License Agreement. Despite continuous follow-ups and reminder notices for payment, the Corporate Debtor failed to pay the outstanding dues as per the agreed terms, leading to a default situation.3. Application for Corporate Insolvency Resolution Process:The Operational Creditor submitted a Demand Notice under section 8 of the Code, which was duly served upon the Corporate Debtor. However, the Corporate Debtor neither paid the demanded amount nor raised a dispute within the stipulated time, indicating a lack of response or defense against the outstanding debt.4. Default on payment as per End User License Agreement:The Tribunal found that the Corporate Debtor had not appeared before the Bench to contest the Application/Petition despite receiving notices and intimations. The ledger account of the Corporate Debtor corroborated the outstanding amount claimed by the Operational Creditor, further strengthening the case for default.5. Appointment of Interim Resolution Professional:Following the establishment of default and admission of liability by the Corporate Debtor through its conduct, the Tribunal admitted the Petition and appointed CA Subrata Maity as the Interim Resolution Professional. The provisions of Moratorium under Section 14 of the Code were declared operative, prohibiting certain actions against the Corporate Debtor during the Insolvency Resolution Process.In conclusion, the Tribunal admitted the Company Petition, appointed an Interim Resolution Professional, and initiated the Corporate Insolvency Resolution Process against the Corporate Debtor due to non-payment of Operational Dues as per the End User License Agreement, establishing a default situation.