2023 (1) TMI 1245 - Tri - Insolvency and Bankruptcy

Tribunal initiates Corporate Insolvency Resolution Process under Insolvency and Bankruptcy Code

The Tribunal admitted the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process ... Maintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and default or not - time limitation - Respondent neither appeared nor filed its reply and, therefore, it was proceeded ex-parte - HELD THAT:- It is seen from the record that the date of default relied in the present application is 01.04.2017 and the present application has been filed on 15.12.2020, which is well within the limitation period after considering the directions by the Hon’ble Supreme Court regarding the extension of limitation issued in the Suo Motu Writ Petition (C) No. 3 of 2020 [2021 (11) TMI 387 - SC ORDER]. Since there has been no representation on behalf of the Respondent and it has been proceeded ex-parte, it is presumed that it has nothing to say in the matter. In the given facts and circumstances, the Operational Creditor has established the default on the part of Corporate Debtor in payments of the operational debt, the amount of which is higher than the minimum threshold prescribed under the IBC 2016. The present petition filed under Section 9 is complete and fulfills all the requirements of law. Therefore, the petition is admitted in terms of Section 9(5) of the IBC. Accordingly, the CIRP is initiated and moratorium is declared in terms of Section 14 of the Code. Petition admitted. Issues:- Initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016.- Claim of unpaid operational debt by the Applicant against the Respondent.- Default date, demand notice, and ex-parte proceedings.- Admittance of the petition, initiation of CIRP, and declaration of moratorium.- Appointment of Interim Resolution Professional (IRP) and directions for CIRP proceedings.- Deposit of funds by the Operational Creditor and communication of the order to relevant parties.Issue 1: Initiation of Corporate Insolvency Resolution ProcessThe Tribunal received a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, from M/s. Mansfield Cable Company Limited, represented by its Interim Resolution Professional, seeking to initiate the Corporate Insolvency Resolution Process against M/s. Mansfield Cables Company & Infrastructure Private Limited.Issue 2: Claim of Unpaid Operational DebtThe Applicant claimed an outstanding amount of Rs. 1,28,75,079/- as unpaid operational debt, including interest, against the Respondent. This claim was based on invoices issued for supplied products, confirmed by the Respondent in a Confirmation of Accounts dated 01.04.2017.Issue 3: Default Date, Demand Notice, and Ex-parte ProceedingsThe Applicant provided evidence of a Demand Notice dated 18.10.2019 issued under Section 8 of the IBC 2016, which was delivered to the Respondent on 19.10.2019. Despite the notice, the Respondent did not respond, leading to ex-parte proceedings against them.Issue 4: Admittance of the Petition, Initiation of CIRP, and Declaration of MoratoriumConsidering the evidence presented, the Tribunal found that the Applicant had established the default on the part of the Respondent in payments of the operational debt, meeting the requirements of the law. Consequently, the petition was admitted, and the Corporate Insolvency Resolution Process (CIRP) was initiated, leading to the declaration of a moratorium under Section 14 of the Code.Issue 5: Appointment of Interim Resolution Professional and Directions for CIRP ProceedingsIn the absence of an IRP proposed by the Operational Creditor, the Tribunal appointed Mr. Vikram Bajaj as the Interim Resolution Professional to oversee the CIRP of the Respondent. Directions were given to Mr. Bajaj to take necessary steps under various sections of the IBC, 2016.Issue 6: Deposit of Funds and Communication of the OrderThe Operational Creditor was directed to deposit Rs. 2,00,000/- with the IRP to cover immediate expenses, subject to adjustment by the Committee of Creditors. The Tribunal ordered the immediate communication of the order to the relevant parties and forwarded a copy to the Insolvency and Bankruptcy Board of India (IBBI) for their records.