Tribunal admits Company Petition under Insolvency Code, appoints Resolution Professional

The Tribunal admitted the Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to the Corporate Debtor's default on a payment of Rs. 11,20,124 for the supply of cement. Despite evidence of outstanding invoices and communication, the Corporate Debtor did not dispute the debt. The Tribunal declared a moratorium under Section 14, appointed an Interim Resolution Professional, and imposed restrictions on legal actions against the Corporate Debtor to initiate the corporate insolvency resolution process and protect the parties' interests.

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Issues:
Company petition under section 9 of Insolvency & Bankruptcy Code, 2016 (IBC) for default in payment of outstanding amount for the supply of cement.

Analysis:
1. The Operational Creditor filed a Company Petition under section 9 of IBC against the Corporate Debtor for defaulting on a payment of Rs. 11,20,124 for the supply of cement for a project between May and September 2012 in Tamil Nadu.

2. The Operational Creditor provided evidence of invoices and correspondence showing the outstanding amount due from the Corporate Debtor. Despite various communications and promises of payment, the debt remained unpaid, leading to the filing of the petition.

3. The Operational Creditor followed due process by sending notices under relevant sections and providing details of the outstanding amount. The Corporate Debtor failed to respond or dispute the debt, indicating a clear default on their part.

4. The Operational Creditor submitted a complete application under Section 9(2) of IBC, including proof of delivery of demand notices and absence of any dispute from the Corporate Debtor. The bank certificate further confirmed non-payment by the Corporate Debtor.

5. The Corporate Debtor did not engage in the legal proceedings, failing to respond to notices or appear before the Tribunal. The lack of representation or dispute raised by the Corporate Debtor strengthened the case for admitting the petition.

6. The Tribunal, after reviewing the submissions, documents, and arguments, found the case suitable for admission under the Insolvency and Bankruptcy Code, 2016, declaring a moratorium under Section 14 with specific directions to protect the interests of the parties involved.

7. The Tribunal appointed an Interim Resolution Professional and imposed restrictions on legal actions against the Corporate Debtor during the moratorium period, ensuring the continuation of essential services and initiating the corporate insolvency resolution process.

8. The order of moratorium was effective immediately, with clear directives on the duration and specific transactions exempted from the moratorium. The appointment of the Interim Resolution Professional was communicated to all relevant parties for further proceedings.

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