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of <h1>Successful Company Petition under IBC: CIRP Initiated, Moratorium Imposed</h1> <h3>Arihant Packers Versus Krushna Cotex (P.) Ltd.</h3> Arihant Packers Versus Krushna Cotex (P.) Ltd. - TMI Issues:Company petition under section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) seeking Corporate Insolvency Resolution Process (CIRP) initiation against a private limited company for unpaid dues.Detailed Analysis:1. Jurisdiction and Background:The Company Petition was filed under section 9 of the IBC by Arihant Packers against the Corporate Debtor, a private limited company, for failing to make a payment of a specific sum. The Corporate Debtor was incorporated under the Companies Act, 1956, with jurisdiction falling under the Mumbai Registrar of Companies.2. Unpaid Invoices and Demand Notice:The Operational Creditor supplied various goods to the Corporate Debtor, resulting in unpaid invoices totaling to a significant amount. A Demand Notice was served on the Corporate Debtor, prompting partial payments but leaving a substantial balance outstanding.3. Legal Compliance and Affidavit Submission:The Operational Creditor complied with the legal requirements under the IBC, submitting necessary documents, including a certificate from a bank certifying the absence of credit deposits from the Corporate Debtor. An affidavit was also presented confirming non-payment and absence of disputes.4. Debt and Default Establishment:The Operational Creditor demonstrated the existence of debt and default by detailing the invoices and payments made by the Corporate Debtor. The outstanding amount was clearly established, leading to the conclusion of debt default.5. Admission of Petition and Moratorium Order:The Adjudicating Authority admitted the petition and ordered the initiation of CIRP against the Corporate Debtor. A moratorium was imposed under section 14 of the IBC, affecting various legal actions against the Corporate Debtor and ensuring the continuation of essential services during the process.6. Appointment of IRP and Management during CIRP:As the Operational Creditor did not propose an Interim Resolution Professional (IRP), the Adjudicating Authority would appoint one. The IRP would manage the Corporate Debtor during the CIRP period, with specific directions regarding the transfer of management and provision of necessary information.7. Financial Deposits and Communication:The Operational Creditor was directed to deposit a specific amount with the IRP for expenses related to public notices and claims. The Registry was tasked with communicating the order to relevant parties promptly, ensuring compliance and updating of necessary records.This detailed analysis covers the key aspects of the judgment, outlining the legal proceedings, compliance with the IBC, establishment of debt default, and the subsequent orders issued by the Adjudicating Authority.
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