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of <h1>Operational creditor prevails over corporate debtor in insolvency case; Interim Resolution Professional appointed.</h1> <h3>Nuvoco Vistas Corporation Ltd. Versus Archon Powerinfra India (P.) Ltd.</h3> Nuvoco Vistas Corporation Ltd. Versus Archon Powerinfra India (P.) Ltd. - TMI Issues:1. Petition under section 9 of the Insolvency & Bankruptcy Code, 2016.2. Default in payment of operational debt by the corporate debtor.3. Admissibility of the application and evidence presented.4. Appointment of an Interim Resolution Professional.5. Declaration of moratorium and its implications.Issue 1: Petition under section 9 of the Insolvency & Bankruptcy Code, 2016:The petitioner, an operational creditor, filed a petition under section 9 of the Insolvency & Bankruptcy Code, 2016 against the respondent, a corporate debtor, for non-payment of dues amounting to Rs. 18,71,779. The petitioner supplied Ready Mix Concrete (RMC) to the respondent as per purchase orders, and despite receipt and acceptance of the materials, the respondent failed to pay the outstanding amount. The petitioner issued demand notices which were returned undelivered, leading to the initiation of CIRP proceedings.Issue 2: Default in payment of operational debt by the corporate debtor:The respondent denied the claims, alleging inferior quality of materials supplied by the petitioner. However, the respondent failed to provide evidence supporting this claim. The Tribunal found that the respondent did not dispute the operational debt or raise any objections before the issuance of notices. The Tribunal concluded that the respondent defaulted on the debt and admitted to the operational debt, leading to the initiation of insolvency resolution proceedings.Issue 3: Admissibility of the application and evidence presented:The Tribunal reviewed the application and supporting documents, finding them complete and in compliance with the Insolvency & Bankruptcy Code. The petitioner fulfilled the requirements, and the respondent's objections regarding the quality of materials supplied were deemed unsubstantiated due to lack of evidence. The Tribunal held that the debt was established, default occurred, and the amount claimed was legally payable by the respondent.Issue 4: Appointment of an Interim Resolution Professional:In line with the Code, the Tribunal appointed an Interim Resolution Professional to oversee the insolvency resolution process. Shri Manish Kumar Bhagat was appointed as the Interim Resolution Professional to manage the proceedings and ensure compliance with the Code's provisions.Issue 5: Declaration of moratorium and its implications:The Tribunal declared a moratorium, prohibiting various actions against the corporate debtor, including legal proceedings, asset transfers, and property recovery. The order specified the duration of the moratorium and directed the continuation of essential services to the corporate debtor. Additionally, the Tribunal instructed the Registry to notify the Registrar of Companies about the insolvency resolution process to prevent any adverse actions against the respondent company.This comprehensive analysis of the Tribunal's judgment highlights the key issues, findings, and actions taken in the context of the Insolvency & Bankruptcy proceedings initiated by the operational creditor against the corporate debtor.
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