Tribunal admits Insolvency Petition, appoints Interim Resolution Professional, finds Corporate Debtor in debt

The Tribunal admitted the Insolvency and Bankruptcy Petition, declaring a moratorium and appointing Mr. Shalabh Kumar Daga as the Interim Resolution Professional. The Corporate Debtor was found to owe an outstanding debt of Rs. 9,42,841/-. The Tribunal directed compliance with procedural requirements and found the petition complete and filed within the limitation period, meeting the criteria for admission based on legal precedents.

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Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016.
2. Declaration of moratorium under Section 13(1) read with Section 14 of the I.B. Code, 2016.
3. Public announcement of the initiation of CIRP and submission of claims.
4. Appointment of an Interim Resolution Professional (IRP).
5. Allegations of supply of low-quality and defective material by the Petitioner.
6. Compliance with procedural requirements and filing of documents.

Issue-wise Detailed Analysis:

1. Initiation of Corporate Insolvency Resolution Process (CIRP):
The Petitioner, M/s. Jay Manak Steels, filed the I.B. Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of CIRP against the Corporate Debtor, M/s. Yogi Infrastructure Pvt. Ltd. The Petitioner claimed that it supplied steel goods worth Rs. 27,17,818/- to the Corporate Debtor, out of which Rs. 17,74,977/- was paid, leaving an outstanding amount of Rs. 9,42,841/- as of 22.09.2017. The Petitioner issued a demand notice on 06.04.2018, which was ignored by the Corporate Debtor, compelling the Petitioner to file the present petition.

2. Declaration of Moratorium:
The Petitioner sought a moratorium against the Corporate Debtor under Section 13(1) read with Section 14 of the I.B. Code, 2016. The Tribunal, upon admitting the petition, declared a moratorium prohibiting the institution or continuation of suits, transferring or disposing of assets, and recovery of property by owners or lessors during the moratorium period.

3. Public Announcement and Submission of Claims:
The Petitioner requested an order for public announcement of the initiation of CIRP against the Corporate Debtor and to call for the submission of claims under Section 13(1) read with Section 15 of the I.B. Code, 2016. The Tribunal directed the Interim Resolution Professional to make the public announcement soon after receiving an authenticated copy of the order.

4. Appointment of Interim Resolution Professional (IRP):
The Petitioner proposed the name of Mr. Shalabh Kumar Daga as the IRP, who consented to act in this capacity. The Tribunal appointed Mr. Daga as the IRP and directed him to adhere to the provisions of the Insolvency and Bankruptcy Code, including making public announcements and performing duties under Sections 18, 20, and 21.

5. Allegations of Low-Quality and Defective Material:
The Corporate Debtor opposed the petition, alleging that the Petitioner supplied low-quality and defective materials. However, the Tribunal found that the Corporate Debtor did not produce any evidence to support these claims and had not raised any objections during the communications. The Petitioner provided rebuttal documents, including emails and WhatsApp screenshots, showing that the Corporate Debtor did not dispute the quality of the goods at the time of supply.

6. Compliance with Procedural Requirements:
The Corporate Debtor contended that the petition was not filed in the prescribed proforma and lacked original documents. Despite initial delays and objections, the Tribunal allowed the amendments to the petition and found it to be complete and filed within the limitation period. The Tribunal relied on the Supreme Court's decisions in Innoventive Industries vs. ICICI Bank Ltd. and Mobilox Innovations Pvt. Ltd. vs. Kirusa Software Pvt. Ltd., affirming that the petition met the requirements for admission.

Conclusion:
The Tribunal admitted the I.B. Petition, finding that the Corporate Debtor had an outstanding debt liability of Rs. 9,42,841/-. The Tribunal declared a moratorium, appointed Mr. Shalabh Kumar Daga as the IRP, and directed the IRP to make public announcements and follow the relevant provisions of the Insolvency and Bankruptcy Code. The petition was found to be complete and deserving of admission based on the facts and legal precedents.

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