Tribunal Admits Operational Creditor's Application Against Corporate Debtor for Default and Debt

The Tribunal admitted the Application under Section 9 of the IBC, 2016, filed by an Operational Creditor against a Private Limited Company, the Corporate Debtor, due to proven operational debt and default. The Corporate Debtor's deliberate avoidance and lack of response to Demand Notices supported the claim. The Tribunal asserted jurisdiction, appointed an Interim Resolution Professional, imposed a moratorium under Section 14(1) of the Code, and directed the Operational Creditor to pay expenses to the Professional. Compliance and communication of the Order were mandated for all relevant parties and authorities.

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Issues:
- Application under Section 9 of IBC, 2016 seeking to initiate Corporate Insolvency Resolution Process.
- Existence of operational debt and default by Corporate Debtor.
- Deliberate avoidance of Corporate Debtor to appear before the Tribunal.
- Jurisdiction of the Tribunal.
- Appointment of Interim Resolution Professional.
- Imposition of moratorium and its implications.
- Payment to Interim Resolution Professional.

Analysis:
1. The Application was filed by an Operational Creditor seeking to initiate Corporate Insolvency Resolution Process against a Private Limited Company, the Corporate Debtor, under Section 9 of IBC, 2016. The Operational Creditor claimed a principal sum along with interest, asserting that the Corporate Debtor failed to clear the dues despite Demand Notices and no pending disputes were notified by the Corporate Debtor.

2. The Tribunal noted the absence of the Corporate Debtor during various hearings, indicating deliberate avoidance. The Operational Creditor provided invoices as evidence, showing the debt originated in 2017, well within the limitation period. The Corporate Debtor's non-response to the Demand Notice further supported the Operational Creditor's claim of default by the Corporate Debtor.

3. Considering the facts presented, the Tribunal concluded that the Operational Creditor proved the existence of operational debt and default by the Corporate Debtor. With no objections raised by the Corporate Debtor, the Tribunal decided to admit the Application under Section 9(5) of the IBC, 2016.

4. The Tribunal addressed the pecuniary jurisdiction, confirming its authority to entertain the Application based on the filing date. An Interim Resolution Professional was appointed from the latest list provided by the Insolvency and Bankruptcy Board of India, subject to necessary disclosures and no pending disciplinary proceedings.

5. The Tribunal imposed a moratorium as per Section 14(1) of the Code, restricting certain actions against the Corporate Debtor during the resolution process. Essential supplies were to continue, and the duration of the moratorium was specified until the completion of the Corporate Insolvency Resolution Process.

6. The Operational Creditor was directed to pay a specified amount to the Interim Resolution Professional to cover expenses. The Application was admitted, and the moratorium came into effect immediately. The Registry was tasked with communicating the Order to all relevant parties and authorities, ensuring compliance with the resolution process.

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