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of <h1>Tribunal Grants Insolvency Application, Initiates Corporate Resolution Process</h1> The Tribunal granted the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, allowing the initiation of the Corporate Insolvency ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of debt or not - existence of debt and default or not - Time Limitation - HELD THAT:- The date of default is 06.03.2019 and the present application is filed on 16.03.2020. Hence the application is not time barred and filed within the period of limitation - The registered office of corporate debtor is situated in Delhi and therefore this Tribunal has jurisdiction to entertain and try this application - present application is filed on the Performa prescribed under Rule 6 of the Insolvency and Bankruptcy Code, 2016 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 r/w Section 9 of the code and is complete. It is clear that the default has occurred and the debt is due and payable. Further, the present application has remained uncontroverted with respect to the claim of the applicant. On the contrary, the corporate debtor in its Section 10 application itself admitted the claim of the present applicant of ₹ 3.5 Lakh which is recorded vide order dated 16.12.2020. Hence the application deserves to be admitted and the applicant is entitled to claim the admitted amount which is still outstanding and has remained unpaid till date. Therefore the applicant is admitted. Application admitted - moratorium declared. Issues involved:1. Application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency process.2. Outstanding debt and non-payment by the Corporate Debtor.3. Service of demand notice and application on the Corporate Debtor.4. Admittance of claim by the Corporate Debtor in a separate application.5. Jurisdiction of the Tribunal to entertain the application.6. Appointment of Interim Resolution Professional and deposit of funds.7. Implementation of moratorium and related provisions.Issue 1: Application under Section 9 of the Insolvency and Bankruptcy Code, 2016The application was filed by the Applicant, authorized by board resolution, seeking to initiate the Corporate Insolvency process against the Corporate Debtor under Section 9 of the Insolvency and Bankruptcy Code, 2016, along with relevant Rules. The Applicant, a logistics solutions provider, detailed the outstanding debt of Rs. 3,52,982 along with interest, and the steps taken to recover the amount.Issue 2: Outstanding debt and non-payment by the Corporate DebtorThe Applicant provided services to the Corporate Debtor, raising invoices that were duly accepted. Despite repeated requests and reminders, the Corporate Debtor failed to pay the outstanding amount of Rs. 3,52,982 along with interest at the rate of 24% per annum. The Applicant served a demand notice under Section 8 of the code, followed by the application under Section 9, which remained uncontroverted.Issue 3: Service of demand notice and application on the Corporate DebtorThe Applicant sent a demand notice calling for payment, which was duly served at the registered office and the Directors' addresses of the Corporate Debtor. The application under Section 9 was also served on the Corporate Debtor through speed post and email, ensuring proper communication and compliance with legal procedures.Issue 4: Admittance of claim by the Corporate Debtor in a separate applicationDuring the hearing, it was revealed that the Corporate Debtor had filed an application seeking Corporate Insolvency Resolution Process against itself under Section 10 of the code, admitting the claim of Rs. 3.5 Lakhs by the Applicant. This admission further strengthened the case of the Applicant for initiating the insolvency process.Issue 5: Jurisdiction of the Tribunal to entertain the applicationGiven the location of the registered office of the Corporate Debtor in Delhi, the Tribunal established its jurisdiction to entertain and adjudicate the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, ensuring the legal proceedings were conducted in the appropriate jurisdiction.Issue 6: Appointment of Interim Resolution Professional and deposit of fundsThe Tribunal appointed an Interim Resolution Professional and directed the Applicant to deposit Rs. 2 lakhs with the professional to cover expenses and functions as per regulations. The appointed professional was required to file necessary forms and disclosures within a specified timeframe, ensuring compliance with regulatory requirements.Issue 7: Implementation of moratorium and related provisionsUpon admission of the application under Section 9, the Tribunal imposed a moratorium as per Section 14(1) of the Code, prohibiting certain actions against the Corporate Debtor. The Tribunal directed the Applicant to comply with regulations and deposit funds, ensuring the smooth functioning of the insolvency resolution process.This detailed analysis covers the key issues addressed in the legal judgment, providing a comprehensive understanding of the proceedings and decisions made by the Tribunal in this case.
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