Tribunal Admits CIRP Application by Bourn Hall, Appoints IRP, Rejects Intervention Application

The Tribunal admitted the Corporate Insolvency Resolution Process (CIRP) application filed by Bourn Hall, appointing Mr. Madan Gopal Jindal as the Interim Resolution Professional (IRP) and declaring a moratorium under Section 14 of the Insolvency and Bankruptcy Code. The intervention application by RNY Healthcare Services Pvt. Ltd. was rejected due to lack of evidence. The decision was based on the completeness of the CIRP application, compliance with procedural requirements, and the absence of disqualifications under the Code.

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Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with procedural requirements for filing the CIRP application.
3. Intervention application by RNY Healthcare Services Pvt. Ltd.
4. Admissibility and completeness of the CIRP application.
5. Appointment of Interim Resolution Professional (IRP).
6. Declaration of Moratorium.

Issue-wise Detailed Analysis:

1. Initiation of CIRP under Section 10 of the Code:
Bourn Hall International India Private Limited (Bourn Hall) filed CP (IB) No. 5/Chd/Hry/2019 to initiate CIRP under Section 10 of the Insolvency and Bankruptcy Code, 2016. The jurisdiction for the case lies with the Chandigarh Bench of the Tribunal.

2. Compliance with Procedural Requirements:
The prescribed Form-6 was filed, signed by the Director of Bourn Hall, and supported by an affidavit. A resolution dated 31.10.2018 from the Extraordinary General Meeting (EGM) authorized the filing of the CIRP application. The form included details of financial and operational creditors, with HDFC Bank Ltd. being the sole financial creditor. Bourn Hall submitted evidence of its dire financial situation and defaults in payments.

3. Intervention Application by RNY Healthcare Services Pvt. Ltd.:
RNY Healthcare Services Pvt. Ltd. filed an intervention application (CA No. 519/2019), claiming to be the landlord of Bourn Hall and alleging non-disclosure of true facts regarding Bourn Hall's financial backing. They referenced an arbitral award in their favor and claimed that no EGM took place on 31.10.2018. However, the Tribunal found no evidence supporting these claims and rejected the intervention application.

4. Admissibility and Completeness of the CIRP Application:
The Tribunal noted that Bourn Hall provided evidence of default, including emails, legal notices, and a recovery suit. The application included a special resolution from the EGM, although the attendance sheet was missing. The Tribunal admitted the application, subject to reconsideration if the EGM's compliance with the Companies Act, 2013, was questioned. The application was found complete, satisfying Section 10(2) and 10(3)(a) requirements, and the proposed IRP had no pending disciplinary proceedings.

5. Appointment of Interim Resolution Professional (IRP):
Mr. Madan Gopal Jindal was proposed and appointed as the IRP. His credentials were verified, and there were no adverse findings. The Tribunal directed the IRP to take over management, make a public announcement, and constitute a committee of creditors. The IRP was instructed to submit regular progress reports.

6. Declaration of Moratorium:
The Tribunal declared a moratorium under Section 14 of the Code, prohibiting suits, asset transfers, and recovery actions against Bourn Hall. Essential goods or services to Bourn Hall were to continue uninterrupted during the moratorium period. The moratorium would remain in effect until the completion of the CIRP or further orders from the Tribunal.

Conclusion:
The Tribunal admitted the CIRP application filed by Bourn Hall, appointed an IRP, and declared a moratorium. The intervention application by RNY Healthcare Services Pvt. Ltd. was rejected. The Tribunal's decision was based on the completeness of the CIRP application, compliance with procedural requirements, and absence of any disqualification under Section 11 of the Code.

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