Corporate Debtor liable for listing fees & penalties as operational debt. IBC application admitted, moratorium declared.

The Tribunal found the Corporate Debtor liable to pay annual listing fees and penalties, classifying them as operational debt within the limitation period. Emphasizing the purpose of the IBC in resolving debts, the Tribunal admitted the application, declared a moratorium, appointed an Interim Resolution Professional, and issued directives for the Corporate Insolvency Resolution Process to proceed.

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Issues:
Initiation of Corporate Insolvency Resolution Process under Section 9 of IBC based on default in payment of annual listing fees by a Corporate Debtor.

Detailed Analysis:
- Operational Creditor's Submissions:
The Operational Creditor, B.S.E Limited, filed an application under Section 9 of the IBC against the Corporate Debtor, M/s. Synergy Cosmetics (Exim), for non-payment of annual listing fees. The Creditor highlighted the default in payment since 01.04.2015 and provided evidence of efforts to recover the outstanding amount. The Creditor emphasized the liability of the Corporate Debtor to pay listing fees as per the terms of the agreement and pointed out relevant clauses supporting the claim. Additionally, the Creditor mentioned the proposal of an Interim Resolution Professional for the case.

- Corporate Debtor's Submissions:
The Corporate Debtor argued against the maintainability of the application, claiming that regulatory dues did not constitute operational debt. Reference was made to the Insolvency Law Committee report and a previous judgment by NCLT Mumbai Bench. The Debtor contended that the application sought to recover arrears of annual listing fees, which did not fall under the purview of IBC as a recovery mechanism. The Debtor also raised the issue of limitation on the debt.

- Operational Creditor's Rejoinder:
In response, the Operational Creditor cited relevant judgments, including one by NCLAT, to support the classification of regulatory dues as operational debt. The Creditor pointed out similar cases where charges like annual listing fees were considered operational debt, emphasizing the admissibility of the application.

- Conclusion:
After considering the submissions and evidence, the Tribunal found that the Corporate Debtor was liable to pay the annual listing fees and penalties for delayed payments. The Tribunal established that the dues qualified as operational debt and were within the limitation period. It clarified that B.S.E, being a commercial entity, could file an application under Section 9 of IBC. The Tribunal emphasized the purpose of IBC in resolving issues related to debts and the need for timely resolution or liquidation. Additionally, the Tribunal admitted the application, declared a moratorium, appointed an Interim Resolution Professional, and issued necessary directives for the Corporate Insolvency Resolution Process to proceed smoothly.

This detailed analysis of the judgment outlines the key arguments presented by both parties, the Tribunal's reasoning, and the consequential orders issued by the Tribunal in response to the application for initiation of Corporate Insolvency Resolution Process under Section 9 of the IBC.

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