Tribunal Admits Application for Insolvency Claim, Orders Moratorium and Appointment of Resolution Professional

The Tribunal admitted the application under section 9 of the Insolvency and Bankruptcy Code, 2016, finding the Operational Creditor entitled to claim dues against the Corporate Debtor. An Interim Resolution Professional was appointed, and the Operational Creditor was directed to deposit funds to cover expenses. A moratorium was imposed on the Corporate Debtor, and the order was communicated to relevant parties for compliance. The judgment detailed the non-payment default by the Corporate Debtor, the response citing financial difficulties, and the initiation of the Corporate Insolvency Resolution Process.

---

---

Issues:
1. Application under section 9 of Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process (CIRP) initiation.
2. Default in payment by the Corporate Debtor against invoices raised by the Operational Creditor.
3. Response of the Corporate Debtor to the demand notice under section 8 of IBC, 2016.
4. Appointment of Interim Resolution Professional and deposit of funds by Operational Creditor.
5. Moratorium and communication of order to relevant parties.

Analysis:
1. The application was filed under section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Bhupindra Agro Private Limited to initiate the Corporate Insolvency Resolution Process against M/s. Shri Vardhman Rice Mills Pvt. Ltd. The Operational Creditor alleged non-payment of dues amounting to Rs. 5,01,360 by the Corporate Debtor despite multiple invoices and reminders.

2. The Operational Creditor detailed the series of invoices issued and the lack of response or payment from the Corporate Debtor. The Operational Creditor sent a demand notice under section 8 of the Code, demanding Rs. 6,21,704 (including interest) to be paid within 10 days. The Respondent failed to comply, leading to the application for CIRP initiation.

3. The Corporate Debtor, in response, cited financial difficulties as the reason for non-payment and expressed willingness to submit to the resolution process due to hardship faced by the company. The applicant confirmed no notice of dispute was received from the Corporate Debtor.

4. The Tribunal admitted the application after finding the Operational Creditor entitled to claim its dues and establishing the default in payment beyond doubt. An Interim Resolution Professional, Mr. Vikas Garg, was appointed, and the Operational Creditor was directed to deposit Rs. 1 lakh with him to cover expenses. The moratorium under section 14(1) of the Code was imposed on the Respondent.

5. The Tribunal directed the registry to communicate the order to all relevant parties promptly and update the status of the Corporate Debtor on the Registrar of Companies' website. The order was to be supplied to all concerned parties for compliance and information.

This detailed analysis covers the key issues and outcomes of the judgment delivered by the Tribunal regarding the application for CIRP initiation and related proceedings under the Insolvency and Bankruptcy Code, 2016.

---