Tribunal admits insolvency application against Sintex Industries, appoints Interim Resolution Professional

The tribunal admitted the insolvency application filed by Invesco Asset Management against M/s. Sintex Industries Limited, declaring a moratorium under Section 14 of the Insolvency and Bankruptcy Code. An Interim Resolution Professional, Mr. Pinakin Shah, was appointed to manage the corporate debtor's affairs. The objections to the authorization were dismissed, and the existence of debt and default was confirmed. The tribunal also issued additional orders to inform the Registrar of Companies and disposed of related applications.

---

---

Issues Involved:
1. Authorization to file the insolvency application.
2. Existence of debt and default.
3. Admissibility of the insolvency application.
4. Declaration of moratorium.
5. Appointment of Interim Resolution Professional (IRP).

Issue-wise Detailed Analysis:

1. Authorization to File the Insolvency Application:
The respondent contested the authorization of Ms. Nupur Tainwala to file the insolvency application, arguing that she was not an authorized representative of the financial creditor, Invesco Trustee Pvt. Ltd. The respondent cited a board resolution dated 18.10.2019, which authorized Ms. Tainwala, but claimed it did not clearly define the 'Company' she represented. The tribunal, however, found that the board resolution provided specific powers to Ms. Tainwala, dismissing the objection as a technicality.

2. Existence of Debt and Default:
The applicant, Invesco Asset Management (India) Pvt. Ltd., acting as an investment manager, had invested Rs. 15,00,00,000 in secured non-convertible debentures issued by the corporate debtor, M/s. Sintex Industries Limited. The corporate debtor defaulted on the payment of principal and interest, totaling Rs. 15,40,01,506.85 as of 30th September 2019. Despite partial payments by the corporate debtor, the default persisted. The corporate debtor acknowledged the debt and its inability to pay through various communications, including a letter dated 25.07.2019.

3. Admissibility of the Insolvency Application:
The tribunal examined the documents submitted by the applicant, including the debenture trust deed, modification deeds, and notices of default. The tribunal found sufficient evidence of debt and default, fulfilling the requirements under Section 5(7) and 5(8)(C) of the Insolvency and Bankruptcy Code (IBC). The application was deemed complete and within the limitation period, warranting its admission.

4. Declaration of Moratorium:
Upon admitting the petition, the tribunal declared a moratorium under Section 14 of the IBC, prohibiting:
- Institution or continuation of suits or proceedings against the corporate debtor.
- Transfer, encumbrance, or disposal of any assets of the corporate debtor.
- Foreclosure or enforcement of security interests.
- Recovery of property occupied by the corporate debtor.
The moratorium will remain effective until the completion of the corporate insolvency resolution process or further orders by the tribunal.

5. Appointment of Interim Resolution Professional (IRP):
The applicant proposed Mr. Pinakin Shah as the IRP, and the tribunal appointed him accordingly. The IRP is tasked with managing the corporate debtor's affairs during the resolution process.

Additional Orders:
- The tribunal directed the registry to inform the Registrar of Companies about the initiation of the corporate insolvency resolution process to prevent any detrimental actions.
- The tribunal disposed of IA/38(AHM) 2021, allowing the respondent's affidavit in reply to be taken on record.
- IA/147(AHM)2021 was dismissed as infructuous following the admission of the main petition.

Conclusion:
The tribunal admitted the insolvency application, declared a moratorium, and appointed an IRP, thereby initiating the corporate insolvency resolution process for M/s. Sintex Industries Limited. The objections regarding authorization were dismissed, and the existence of debt and default was established based on the evidence provided.

---