Tribunal Confirms Service of Demand Notice, Admits Insolvency Petition |

The Tribunal confirmed proper service of the demand notice in Form No. 3 to the Corporate Debtor's registered office. Despite no dispute raised by the Corporate Debtor regarding the operational debt, the Sole Proprietor of the Operational Creditor affirmed the absence of any proven dispute. The Tribunal admitted the petition under Section 9(5)(i) of the Code, initiating the Corporate Insolvency Resolution Process. A moratorium under Section 14 of the Code was declared, appointing an Interim Resolution Professional to manage the Corporate Debtor's affairs and conduct creditor meetings, with regular progress reporting to the Tribunal.

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Issues:
1. Proper service of demand notice in Form No. 3
2. Dispute regarding operational debt
3. Admissibility of the petition under Section 9(5)(i) of the Code

Issue 1: Proper service of demand notice in Form No. 3
The Tribunal examined the delivery of the demand notice sent via speed post to the registered office of the Corporate Debtor. The tracking report confirmed delivery on 31.12.2018, establishing the proper service of the notice as per the requirements.

Issue 2: Dispute regarding operational debt
The Tribunal reviewed the lack of dispute raised by the Corporate Debtor regarding the operational debt. Despite the issuance of a demand notice and no response from the Corporate Debtor, the Sole Proprietor of the Operational Creditor affirmed in an affidavit that no notice of dispute or payment was received, indicating the absence of any proven dispute.

Issue 3: Admissibility of the petition under Section 9(5)(i) of the Code
In accordance with Section 9(5)(i) of the Code, the Tribunal assessed the completeness of the application, the existence of unpaid operational debt, and the proper delivery of invoices and notices to the Corporate Debtor. With all conditions satisfied, including the absence of a dispute and the proposal of an Interim Resolution Professional, the Tribunal admitted the petition for initiating the Corporate Insolvency Resolution Process.

The Tribunal declared a moratorium under Section 14 of the Code, suspending legal actions against the Corporate Debtor and appointing an Interim Resolution Professional. The appointed professional was directed to manage the affairs of the Corporate Debtor, prepare asset inventories, and conduct creditor meetings. The Interim Resolution Professional was instructed to comply with the Code and report progress regularly to the Tribunal. The order communicated to both parties marked the initiation of the Corporate Insolvency Resolution Process.

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