2019 (9) TMI 227 - Tri - Insolvency and Bankruptcy

Company Petition Admitted for Insolvency Resolution Process: Moratorium Declared

The Company Petition filed seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor for default in payment was admitted. ... Maintainability of application - Initiation of Corporate Insolvency Resolution Process - corporate debtor defaulted in repayment of sum - existence of debt and default or not - HELD THAT:- This Corporate Debtor has not placed any material disputing the claim raised by the Operational Creditor herein, therefore, this Bench, having not noticed any material contrary to the petition averments, hereby holds that the Operational Creditor has proved existence of debt and default. Petition admitted - moratorium declared. Issues:Company petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for default in payment.Analysis:The Operational Creditor filed a Company Petition seeking initiation of CIRP against the Corporate Debtor for defaulting on a payment of INR 34,05,279 as of 31.12.2018. The Operational Creditor had supplied IVAX 750 to the Corporate Debtor against purchase orders, but the payments were not made. Subsequently, the Operational Creditor filed a suit against the Corporate Debtor, which was decreed for an amount of INR 27,58,513 along with interest. Despite the decree, the Corporate Debtor failed to pay, leading to the current claim of INR 34,05,279. The Corporate Debtor did not dispute the claim raised by the Operational Creditor, leading the Bench to conclude that the Operational Creditor had proved the existence of debt and default.The Bench admitted the Company Application and appointed an Interim Resolution Professional. It declared a moratorium prohibiting various actions, including the institution of suits, transferring assets, enforcing security interests, and recovery of property. The supply of essential goods or services to the Corporate Debtor was not to be terminated during the moratorium period. The order of moratorium was to be in effect until the completion of the corporate insolvency resolution process or liquidation. The public announcement of the Corporate Insolvency Resolution Process was to be made immediately, and the Interim Resolution Professional was appointed to carry out functions as per the Insolvency and Bankruptcy Code.In conclusion, the Company Petition was admitted, and the Registry was directed to communicate the order to the Operational Creditor, Corporate Debtor, and the Interim Resolution Professional promptly.