Corporate Insolvency Resolution Process Initiated: Interim Professional appointed, moratorium imposed

The Tribunal admitted the petition for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor under Section 9 of the Insolvency and Bankruptcy Code. An Insolvency Professional was appointed as an Interim Resolution Professional, and a moratorium was imposed to facilitate the resolution process. The Corporate Debtor did not dispute the debt or make full payment, leading to the admission of the petition without costs.

---

---

Issues:
Initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The petition was filed by an Operational Creditor seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor company for non-payment of dues. The Operational Creditor had supplied chemicals to the Corporate Debtor, and despite repeated requests for payment, the dues remained unpaid. The Operational Creditor issued a Demand Notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, which was received by the respondent but no full payment was made. The Operational Creditor claimed an outstanding amount of Rs. 27,45,941, which included the principal amount and interest. The Corporate Debtor did not dispute the debt or make full payment, leading to the petition for initiation of insolvency resolution process.

The Tribunal reviewed the material on record and the oral submissions made by the Petitioner. The Petitioner provided detailed information about the transactions, invoices, and the outstanding amount due from the Corporate Debtor. The Tribunal noted that the Corporate Debtor had not contested the debt or made the full payment despite receiving the Demand Notice. The Tribunal found the petition to be complete and fit for triggering the Insolvency Resolution Process against the Corporate Debtor, leading to the admission of the petition under Section 9 of the Code.

In accordance with the Circular of Insolvency and Bankruptcy Board of India, the Tribunal appointed an Insolvency Professional from a panel to act as an Interim Resolution Professional in the case. The Tribunal also ordered a moratorium under Section 13(1)(a) of the IB Code, prohibiting certain actions against the company, including the institution of suits, transferring of assets, and recovery of property. The moratorium was intended to facilitate the Corporate Insolvency Resolution Process and protect the interests of all stakeholders involved.

The Tribunal directed the Registry to communicate the orders to the concerned parties and set a deadline for the Interim Resolution Professional to submit willingness to act. The Corporate Debtor was also informed of the admission of the petition. The Tribunal concluded the judgment by admitting the Corporate Insolvency Resolution Process petition and made no order as to costs, signifying the seriousness of the matter and the need for resolution through the insolvency process.

---