Insolvency Petition Admitted, Interim Resolution Professional Appointed, Moratorium in Place

The petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted, appointing Mr. Debashis Nanda as the Interim Resolution Professional. A moratorium was declared under Section 14 of the Code, imposing restrictions on legal actions against the corporate debtor. The IRP was instructed to carry out duties outlined in various sections of the Code and ensure the protection of the corporate debtor's assets. The Tribunal ordered the public announcement of the admission of the petition and mandated communication of the decision to relevant parties within seven days.

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Issues Involved:
1. Admissibility of the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.
2. Verification of the financial debt and default.
3. Appointment of the Interim Resolution Professional (IRP).
4. Declaration of moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016.
5. Duties and responsibilities of the Interim Resolution Professional.

Detailed Analysis:

1. Admissibility of the Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016:
The petitioner, claiming to be a financial creditor, filed the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, Mohan Gems & Jewels Pvt. Limited. The financial creditor is an Asset Reconstruction Company registered under section 3 of the SARFAESI Act, 2002. The Tribunal examined the provisions of Section 7(2) and Section 7(5) of the Code, confirming that the application was filed in the prescribed proforma and was complete.

2. Verification of the Financial Debt and Default:
The financial creditor asserted that the corporate debtor's account was declared as a Non-Performing Asset (NPA) on 29.11.2015 by the erstwhile State Bank of Patiala. The debt was assigned to the petitioner via an Assignment Agreement dated 08.02.2017. The total financial debt claimed by the petitioner amounted to Rs. 75,62,03,501.01/- as of 26.04.2018. The Tribunal found overwhelming documentary evidence supporting the advancement of the loan and the default, including balance confirmation letters and valuation reports.

3. Appointment of the Interim Resolution Professional (IRP):
The petitioner proposed Mr. Debashis Nanda as the Insolvency Professional. His registration number is IBBI/IPA-003/IP-P00040/2017-18/10316. He filed his written communication as required by Rule 9 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, declaring no pending disciplinary proceedings against him. The Tribunal, satisfied with the proposal, appointed Mr. Debashis Nanda as the Interim Resolution Professional.

4. Declaration of Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016:
The Tribunal declared a moratorium in terms of Section 14 of the Code, imposing prohibitions on:
- The institution or continuation of suits or proceedings against the corporate debtor.
- Transferring, encumbering, or disposing of any assets of the corporate debtor.
- Any action to foreclose, recover, or enforce any security interest created by the corporate debtor.
- The recovery of any property by an owner or lessor where such property is occupied by or in possession of the corporate debtor.
The moratorium does not apply to transactions notified by the Central Government and the supply of essential goods or services to the corporate debtor.

5. Duties and Responsibilities of the Interim Resolution Professional:
The Interim Resolution Professional is directed to make a public announcement regarding the admission of the application under Section 7 of the Code. He must perform his functions as per Sections 15, 17, 18, 19, 20, and 21 of the Code, ensuring fairness, integrity, and independence. The personnel connected with the corporate debtor are legally obliged to assist the IRP. The IRP is also responsible for protecting and preserving the value of the corporate debtor's property.

Conclusion:
The petition was admitted, and Mr. Debashis Nanda was appointed as the Interim Resolution Professional. The Tribunal directed the IRP to make a public announcement and declared a moratorium as per Section 14 of the Code. The office was instructed to communicate the order to the relevant parties within seven days.

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