Proper service & compliance: Tribunal admits petition for Corporate Insolvency Resolution Process.

The tribunal found proper service of the demand notice, no dispute over the operational debt, compliance with Section 9(5)(i) of the Insolvency and Bankruptcy Code, appointed Mr. Vishawjeet Gupta as the Interim Resolution Professional, and declared a moratorium. The petition to initiate the Corporate Insolvency Resolution Process against the corporate debtor was admitted, and necessary actions were directed to be taken in accordance with the Code.

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Issues Involved:
1. Proper service of the demand notice.
2. Dispute over the operational debt.
3. Compliance with Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016.
4. Appointment of the Interim Resolution Professional (IRP).
5. Declaration of moratorium.

Issue-wise Detailed Analysis:

1. Proper Service of the Demand Notice:
The tribunal examined whether the demand notice in Form No.3 dated 01.10.2018 was properly served. The notice was sent to the registered office of the corporate debtor as per the master data, and the postal receipt was attached as evidence. The corporate debtor replied to the notice on 26.10.2018, indicating that the notice was indeed received.

2. Dispute Over the Operational Debt:
The tribunal considered whether the operational debt was disputed by the corporate debtor. The corporate debtor did not file any reply to the petition nor disputed the liability towards the operational creditor. The corporate debtor admitted its liability and requested time to clear the debt due to liquidity issues. Therefore, there was no dispute regarding the operational debt.

3. Compliance with Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016:
The tribunal reviewed the application for completeness and compliance with the conditions under Section 9(5)(i) of the Code. The application was found to be complete, and the operational creditor had provided all necessary documents, including invoices, calculation sheets, and bank statements. The corporate debtor failed to make the payment, and no notice of dispute was received by the operational creditor. Additionally, there were no disciplinary proceedings pending against the proposed IRP.

4. Appointment of the Interim Resolution Professional (IRP):
The tribunal appointed Mr. Vishawjeet Gupta as the IRP, as proposed by the operational creditor. The IRP’s credentials were verified, and there was nothing adverse against him. The IRP was directed to take control of the corporate debtor's assets, manage its affairs, and perform duties as per the Code. The IRP was also instructed to make a public announcement, constitute a Committee of Creditors, and submit regular progress reports to the tribunal.

5. Declaration of Moratorium:
The tribunal declared a moratorium in terms of Section 14 of the Code, effective from the date of the order until the completion of the Corporate Insolvency Resolution Process (CIRP) or until a resolution plan is approved or liquidation is ordered. The moratorium included the suspension of suits or proceedings against the corporate debtor, prohibition of transferring or disposing of assets, and continuation of essential goods or services to the corporate debtor.

Conclusion:
The tribunal admitted the petition for initiating the CIRP against the corporate debtor, declared a moratorium, and appointed Mr. Vishawjeet Gupta as the IRP. The order was communicated to both parties, and the IRP was directed to proceed with the necessary actions as per the Code.

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