Tribunal Admits Petition for Insolvency, Declares Moratorium to Protect Corporate Debtor

The Tribunal admitted the petition under sub-section (5) of Section 9 of the Insolvency and Bankruptcy Code, ordering a reference to the Insolvency and Bankruptcy Board of India for the recommendation of an Insolvency Professional. A moratorium under Section 13(1)(a) of the Code was declared, protecting the Corporate Debtor from various actions and ensuring the continuity of essential goods and services supply. The moratorium will last until the completion of the Corporate Insolvency Resolution Process, with further proceedings scheduled after receiving the Insolvency and Bankruptcy Board of India's proposal.

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Issues Involved:
1. Whether the claim is an operational debt.
2. Whether the Applicant qualifies as an Operational Creditor.
3. Whether M/s. Stratus Foods Private Limited is a Corporate Debtor.
4. Compliance with the requirements of sub-sections (1) to (4) of section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rules 5 and 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Issue-wise Detailed Analysis:

1. Whether the claim is an operational debt:
The Tribunal examined the definition of "Operational Debt" under sub-section (21) of Section 5 of the Insolvency and Bankruptcy Code, 2016, which includes claims in respect of the provision of goods or services. The facts disclosed that the Applicant supplied goods to the Corporate Debtor, thus categorizing the claim as an 'operational debt'.

2. Whether the Applicant qualifies as an Operational Creditor:
According to sub-section (20) of Section 5 of the Code, an "Operational Creditor" is a person to whom an operational debt is owed. Since the amount due to the Applicant is an operational debt, the Applicant is considered an 'operational creditor'.

3. Whether M/s. Stratus Foods Private Limited is a Corporate Debtor:
The Tribunal referred to sub-section (8) of Section 3 of the Code, which defines a "Corporate Debtor" as a corporate person who owes a debt to any person. M/s. Stratus Foods Private Limited, being a registered company under the Companies Act, qualifies as a corporate person and owes a debt to the Applicant. Hence, it is a Corporate Debtor.

4. Compliance with the requirements of sub-sections (1) to (4) of section 9 of the Code read with Rules 5 and 6 of the Rules, 2016:
- Sub-section (1) of Section 9: The Corporate Debtor failed to make payment or issue a notice of dispute within ten days from the date of receipt of the demand notice, as required under sub-section (2) of Section 8 of the Code.
- Sub-section (2) and (3) of Section 9: The Applicant paid the required fee and enclosed the necessary documents with the application.
- Sub-section (4) of Section 9: The Applicant did not propose a Resolution Professional to act as an Interim Resolution Professional. However, the Tribunal noted that the petition cannot be rejected on this ground alone. Instead, the Tribunal will make a reference to the Insolvency and Bankruptcy Board of India to recommend an insolvency professional.

Conclusion:
The Tribunal admitted the petition under sub-section (5) of Section 9 of the Code. It ordered a reference to the Insolvency and Bankruptcy Board of India for the recommendation of an Insolvency Professional. Additionally, a moratorium under Section 13(1)(a) of the Code was declared, prohibiting various actions against the Corporate Debtor, such as the institution or continuation of suits, transferring or disposing of assets, and recovery of property. The supply of essential goods and services to the Corporate Debtor shall not be interrupted during the moratorium period. The moratorium will remain in force until the completion of the Corporate Insolvency Resolution Process. The Tribunal will issue a separate order for a public announcement upon appointment of an Interim Resolution Professional. The matter is listed for further proceedings after receiving the proposal from the Insolvency and Bankruptcy Board of India.

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