Petition Admitted: Corporate Insolvency Process Initiated for Non-Payment of Debt

The Tribunal admitted the petition for initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor due to non-payment of the operational debt. A moratorium was declared under Section 14 of the Insolvency and Bankruptcy Code, suspending legal actions against the debtor and appointing an Interim Resolution Professional (IRP) to oversee the process. The IRP was tasked with managing the debtor's affairs, forming a Committee of Creditors, and providing regular progress reports to the Tribunal. The application for a stay on alienation of assets was dismissed following the admission of the CIRP.

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

Issue-Wise Detailed Analysis:

1. Proper Service of Demand Notice:
The first issue for consideration was whether the demand notice in Form No. 3 & 4 dated 16.10.2019 was properly served. The demand notice was sent to the registered office address of the corporate debtor as per the master data. The postal receipt for the demand notice was provided, and the corporate debtor acknowledged receipt of the notice via email dated 30.10.2019, admitting the debt.

2. Dispute Over Operational Debt:
The next issue was whether the operational debt was disputed by the corporate debtor. The corporate debtor did not dispute the liability towards the operational creditor and admitted its inability to pay the outstanding amount. There was no notice of dispute provided by the corporate debtor, and the affidavit regarding no dispute was submitted by the operational creditor.

3. Compliance with Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016:
The Tribunal examined whether the conditions under Section 9(5)(i) of the Code were satisfied. The application was found to be complete, and there was no payment of the unpaid operational debt. The demand notice was properly delivered, and no dispute was raised by the corporate debtor. The proposed Interim Resolution Professional (IRP) had no disciplinary proceedings pending against him.

4. Admission of the Corporate Insolvency Resolution Process (CIRP):
The Tribunal found that the corporate debtor failed to make the payment of Rs. 37,16,400/- due to the operational creditor. The conditions under Section 9 of the Code were satisfied, and the debt and default were proved by the operational creditor. Consequently, the petition for initiation of the CIRP was admitted.

5. Declaration of Moratorium and Appointment of Interim Resolution Professional (IRP):
The Tribunal declared a moratorium in terms of Section 14 of the Code, which included:
- Suspension of suits or proceedings against the corporate debtor.
- Prohibition on transferring or disposing of assets by the corporate debtor.
- Suspension of actions to enforce security interests.
- Prohibition on recovery of property occupied by the corporate debtor.

The Tribunal appointed Mr. Ravinder Kumar Goel as the Interim Resolution Professional (IRP) with specific directions, including:
- Suspension of the powers of the Board of Directors.
- Management of the corporate debtor's affairs by the IRP.
- Public announcement of the CIRP initiation.
- Cooperation from the corporate debtor's personnel.
- Constitution of a Committee of Creditors and submission of a report to the Tribunal.
- Regular progress reports to be sent to the Tribunal.

Conclusion:
The Tribunal admitted the petition for initiation of the CIRP against the corporate debtor, declared a moratorium, and appointed an Interim Resolution Professional to manage the process. The operational creditor's application for a stay on the alienation of the corporate debtor's assets was also disposed of in view of the admission of the CIRP.

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