Tribunal Admits Insolvency Petition, Initiates Corporate Insolvency Process

The Tribunal admitted the petition under Section 9 of The Insolvency and Bankruptcy Code, 2016, filed by an operational creditor against a corporate debtor for payment of dues. The Tribunal determined the operational debt, appointed an Interim Resolution Professional, declared a moratorium, and initiated the Corporate Insolvency Process. The respondent failed to dispute the debt, leading to the Tribunal's decision in favor of the petitioner. The moratorium was imposed to protect the corporate debtor's assets and ensure a fair resolution process in line with the Code's provisions.

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Issues:
1. Application under Section 9 of The Insolvency and Bankruptcy Code, 2016.
2. Determination of operational debt and default.
3. Appointment of Interim Resolution Professional.
4. Declaration of moratorium and its implications.

Issue 1: Application under Section 9 of The Insolvency and Bankruptcy Code, 2016

The petitioner, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking payment of dues from the respondent, a corporate debtor. The petitioner provided evidence of goods supplied to the respondent, establishing a total due amount of Rs. 10,55,258. Despite multiple opportunities, the respondent failed to file a reply or raise any dispute regarding the debt.

Issue 2: Determination of operational debt and default

The Tribunal analyzed the application to ascertain the existence of operational debt exceeding Rs. 1,00,000, the due and payable status of the debt supported by documentary evidence, and the absence of any dispute raised by the respondent. Referring to the judgment in Innoventive Industries Ltd. v. ICICI Bank Ltd., the Tribunal emphasized that the Code is triggered upon default of Rs. 1,00,000 or more, and in this case, the operational debt was found to be due to the applicant. The Tribunal noted that the application was complete and acknowledged the lack of dispute from the respondent.

Issue 3: Appointment of Interim Resolution Professional

The Tribunal appointed an Interim Resolution Professional, Shri Bhupendra Singh Narayan Singh Rajput, to act under Section 13(1)(c) of the Code. The Tribunal directed the Insolvency Resolution Professional to make a public announcement of the initiation of Corporate Insolvency Process and call for submission of claims as required by Section 15 of the Code.

Issue 4: Declaration of moratorium and its implications

Upon admitting the petition and declaring a moratorium, the Tribunal prohibited various actions against the corporate debtor, including the institution of suits, transferring of assets, recovery of property, and termination of essential services during the moratorium period. The order of moratorium was to remain in effect until the completion of the corporate insolvency resolution process or until a resolution plan was approved or liquidation ordered. The Tribunal communicated the order to all relevant parties and the appointed Interim Insolvency Resolution Professional.

In conclusion, the Tribunal admitted the petition, declared a moratorium, appointed an Interim Resolution Professional, and directed the initiation of the Corporate Insolvency Process, ensuring the protection of the rights and interests of the parties involved in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

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