Insolvency Petition Admitted, Moratorium Declared, Interim Resolution Professional Appointed

The Tribunal admitted the Insolvency and Bankruptcy Petition on 07.04.2021, initiating the Corporate Insolvency Resolution Process against Cleanopolis Energy Systems India Private Limited. A moratorium was declared, prohibiting legal actions against the Corporate Debtor's assets. Mr. Amit Pareek was appointed as the Interim Resolution Professional to manage the affairs of the Corporate Debtor. The Tribunal stressed compliance with Insolvency and Bankruptcy Code provisions, emphasizing timely completion of the resolution process and the need for cooperation from the Corporate Debtor's management.

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Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP)
2. Existence and Default of Financial Debt
3. Period of Limitation
4. Moratorium Declaration
5. Appointment of Interim Resolution Professional (IRP)
6. Compliance with Insolvency and Bankruptcy Code (IBC) Provisions

Issue-wise Detailed Analysis:

1. Initiation of Corporate Insolvency Resolution Process (CIRP):
The Financial Creditor, Indian Bank (erstwhile Allahabad Bank), filed an Insolvency and Bankruptcy (I.B.) Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP against the Corporate Debtor, Cleanopolis Energy Systems India Private Limited, due to default in repayment of various credit facilities. The application was filed by an authorized officer of the bank.

2. Existence and Default of Financial Debt:
The Financial Creditor provided details of the financial debt granted to the Corporate Debtor, including term loans and cash credit loans, with a total sanctioned amount of Rs. 7,43,15,000.00 and an outstanding debt of Rs. 11,88,32,383.00 (including interest up to 01.01.2020). The date of default was 30.03.2018. The Financial Creditor submitted relevant documents, including loan agreements, security details, and statements of accounts, to support the claim of default.

3. Period of Limitation:
The petition was filed within the limitation period. The default occurred on 30.03.2018, and the petition was filed on 08.01.2021. The Corporate Debtor had acknowledged the debts on 27.01.2015, 28.06.2017, and 19.07.2019, which confirmed the existence of the debt within the limitation period.

4. Moratorium Declaration:
Upon admission of the petition, the Tribunal declared a moratorium as per Sections 13 and 14 of the IBC, prohibiting:
a) Institution or continuation of suits or proceedings against the Corporate Debtor.
b) Transfer, encumbrance, or disposal of the Corporate Debtor's assets.
c) Actions to foreclose or enforce security interests.
d) Recovery of property occupied by the Corporate Debtor.
The moratorium would be effective from the date of the order until the completion of the CIRP.

5. Appointment of Interim Resolution Professional (IRP):
The Tribunal appointed Mr. Amit Pareek as the IRP, directing him to make a public announcement of the moratorium and to perform duties as specified under the IBC. The IRP was instructed to file a declaration disclosure statement within two days and to manage the day-to-day affairs of the Corporate Debtor. The Special Officer appointed earlier was relieved, and all documents were to be handed over to the IRP.

6. Compliance with Insolvency and Bankruptcy Code (IBC) Provisions:
The Tribunal noted that the Financial Creditor had filed the petition in the prescribed format, annexing copies of loan documents confirming the existence of debt and default. The Tribunal emphasized the necessity of adhering to the time limits for completing the CIRP and the legal obligations of the Corporate Debtor's management to cooperate with the IRP. The Tribunal also highlighted the importance of considering viable resolution plans for the Corporate Debtor, especially given its status as an MSME unit.

Order:
The Tribunal admitted the I.B. Petition on 07.04.2021, declaring the commencement of the CIRP and imposing a moratorium. The IRP was appointed, and the Special Officer was relieved. The Tribunal directed the Registry to communicate the order to relevant parties and emphasized the importance of exploring feasible resolution plans for the Corporate Debtor.

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