Tribunal Approves CIRP Petition: Appointment of IRP, Moratorium Declared

The Tribunal admitted the petition for Corporate Insolvency Resolution Process (CIRP) filed by Reliance Commercial Finance Limited against Noble Resourcing Business and Solutions Private Limited. The Financial Creditor demonstrated the default amount and compliance with legal requirements, leading to the appointment of an Interim Resolution Professional (IRP) and declaration of a moratorium. The Corporate Debtor's opposition was dismissed, and the Tribunal directed communication of the order to concerned parties and updating of the Corporate Debtor's status on the Registrar of Companies' website.

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Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP)
2. Compliance with Section 7 of the Insolvency and Bankruptcy Code, 2016
3. Financial Creditor's claim and evidence of default
4. Corporate Debtor's opposition and arguments against the petition
5. Appointment of Interim Resolution Professional (IRP)
6. Declaration of Moratorium

Detailed Analysis:

1. Initiation of Corporate Insolvency Resolution Process (CIRP):
Reliance Commercial Finance Limited petitioned for the initiation of CIRP against Noble Resourcing Business and Solutions Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petitioner, as a 'Financial Creditor', claimed entitlement to realize the default amount from the 'Corporate Debtor' due to the transfer of debt from Reliance Capital Finance Limited, sanctioned by the Bombay High Court.

2. Compliance with Section 7 of the Insolvency and Bankruptcy Code, 2016:
The Tribunal examined the requirements of Section 7 (2) and Section 7 (5) of the Code. The petition was filed in the prescribed form and manner, accompanied by the necessary fee. The Tribunal confirmed that the application was complete, and no disciplinary proceedings were pending against the proposed Interim Resolution Professional (IRP).

3. Financial Creditor's Claim and Evidence of Default:
The Financial Creditor provided evidence of the loan disbursal and the Corporate Debtor's failure to repay the EMIs as per the repayment schedule. The loan agreement, demand promissory note, and other relevant documents were submitted. The Financial Creditor claimed a default amount of Rs. 64,90,927 as of 10.07.2017, supported by a CIBIL report.

4. Corporate Debtor's Opposition and Arguments Against the Petition:
The Corporate Debtor opposed the petition, arguing that the Financial Creditor had made errors in disbursing the loan amount, which led to non-delivery of one of the machines and subsequent business losses. They contended that the Financial Creditor overpaid one supplier and underpaid another, causing disruptions in their operations. Despite these issues, the Corporate Debtor continued to make EMI payments. They also argued that the Financial Creditor did not restructure the loan despite repeated requests.

5. Appointment of Interim Resolution Professional (IRP):
The Tribunal appointed Mr. Manoj Kulshrestha as the IRP, confirming that he met the requirements under Section 7 (3) (b) of the Code. The IRP was directed to make a public announcement regarding the admission of the application and to perform his duties as per Sections 15, 17, 18, 19, 20 & 21 of the Code.

6. Declaration of Moratorium:
A moratorium was declared in terms of Section 14 of the Code, prohibiting the institution or continuation of suits or proceedings against the Corporate Debtor, transferring or disposing of assets, foreclosing or enforcing security interests, and recovering property occupied by the Corporate Debtor. The moratorium would not apply to transactions notified by the Central Government or sureties in a contract of guarantor to the Corporate Debtor. Essential goods or services to the Corporate Debtor were to continue without interruption.

Conclusion:
The Tribunal admitted the petition for CIRP, finding that the Financial Creditor had successfully demonstrated a default and complied with the necessary legal requirements. The Corporate Debtor's arguments were rejected, as the evidence of default was clear, and no settlement was reached despite ample time. The Tribunal directed the office to communicate the order to relevant parties and update the status of the Corporate Debtor on the Registrar of Companies' website.

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