Tribunal admits petition under Insolvency and Bankruptcy Code, dismisses objections. Interim Resolution Professional appointed.

The Tribunal found the petition complete and compliant with the Insolvency and Bankruptcy Code, 2016. Objections by the State Bank of India were dismissed, and the petition was admitted, commencing the Corporate Insolvency Resolution Process. An Interim Insolvency Resolution Professional was appointed, and a moratorium was declared to aid the resolution process. The application was disposed of without costs.

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Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016.
2. Objections raised by the financial creditor (State Bank of India).
3. Compliance with procedural requirements and completeness of the petition.
4. Appointment of Interim Insolvency Resolution Professional (IRP).
5. Declaration of moratorium.

Detailed Analysis:

1. Initiation of Corporate Insolvency Resolution Process (CIRP):
M/S. Hardik Industrial Corporation Private Limited, through its Authorized Representative, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process. The Board of Directors resolved on 22nd January 2018 to authorize the filing of this petition. The petition was filed in the prescribed statutory form No. 6 as per Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

2. Objections Raised by the Financial Creditor (State Bank of India):
The State Bank of India (SBI), a financial creditor, raised objections through an affidavit, arguing that the application was misconceived, suffered from various infirmities, and was filed with unclean hands. SBI contended that the corporate applicant was not functional and that the application was an attempt to frustrate lawful recovery actions. SBI also highlighted that multiple interconnected applications were filed simultaneously by related companies to obstruct recovery processes.

3. Compliance with Procedural Requirements and Completeness of the Petition:
The Tribunal examined the petition and the accompanying documents, including the Board resolution, details of financial and operational creditors, ledger accounts, statutory liabilities, and financial statements. The Tribunal found that the petition was complete in all respects and that the corporate debtor had provided all necessary information as required under Section 10 and Form 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Tribunal noted that the financial debt was due, and there was a default in payment.

4. Appointment of Interim Insolvency Resolution Professional (IRP):
The Tribunal appointed Mr. Kiran C. Shah as the Interim Insolvency Resolution Professional (IRP) under Section 13(1)(c) of the Code. The IRP was directed to make a public announcement of the initiation of the CIRP and call for submission of claims as per the relevant provisions of the Code and regulations.

5. Declaration of Moratorium:
The Tribunal declared a moratorium under Section 13(1)(a) of the Code, prohibiting:
(a) Institution or continuation of suits or proceedings against the corporate debtor.
(b) Transferring, encumbering, or disposing of any assets or legal rights of the corporate debtor.
(c) Actions to foreclose or enforce security interests.
(d) Recovery of property by owners or lessors in possession of the corporate debtor.
The moratorium ensures uninterrupted supply of essential goods and services and remains in force until the completion of the CIRP, subject to specific exceptions.

Conclusion:
The Tribunal found the petition to be complete and in compliance with the requirements of the Insolvency and Bankruptcy Code, 2016. The objections raised by SBI were overruled, and the petition was admitted, initiating the Corporate Insolvency Resolution Process. The Tribunal appointed an Interim Insolvency Resolution Professional and declared a moratorium to facilitate the resolution process. The application was disposed of accordingly, with no order as to costs.

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