Tribunal Admits Petition Under Insolvency Code Section 9

The Tribunal admitted the petition under Section 9 of the Insolvency & Bankruptcy Code, finding the petitioner, an operational creditor, had fulfilled the necessary requirements. The petitioner was authorized to initiate insolvency resolution against the respondent-corporate debtor, who had outstanding dues. The Tribunal directed the declaration of moratorium, appointment of an Interim Resolution Professional, and awarded the petitioner interest on the outstanding amount. Further proceedings were scheduled, with orders communicated to both parties for compliance.

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Issues:
Initiating insolvency resolution process under the Insolvency & Bankruptcy Code against a corporate debtor.

Analysis:
The petitioner, a company incorporated under the Companies Act, filed a petition under Section 9 of the Insolvency & Bankruptcy Code to initiate insolvency resolution against the respondent-corporate debtor, Alchemist Hospitals (Gurgaon) Private Limited. The petitioner's Managing Director was authorized to file the petition based on a resolution passed by the petitioner company. The respondent-corporate debtor was incorporated with a registered office in Panchkula, falling within the territorial jurisdiction of the Tribunal.

The petitioner, an operational creditor engaged in selling medicines and supplies, provided goods to the respondent-corporate debtor from December 2014 to July 2016. Despite part payments made by the respondent, there was an outstanding balance of Rs. 6,74,310.36 as per the petitioner's records. The petitioner sent a demand notice, which was validly delivered to the respondent's registered office address and email.

The Tribunal, after considering the facts and submissions, found that the petitioner had fulfilled the requirements of Section 9 of the Code. The petitioner submitted copies of invoices, an affidavit stating no dispute from the corporate debtor, a certificate from the financial institution confirming non-payment, and bank statements. The petitioner was held entitled to interest at a rate of 10% per annum on the outstanding amount.

As the operational creditor, the petitioner was not required to propose the Resolution Professional, and the Tribunal admitted the petition under Section 9 of the Code. The matter was scheduled for further proceedings to declare moratorium and appoint the Interim Resolution Professional. The Tribunal directed the communication of the order to both parties for compliance.

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