Tribunal Admits Insolvency Application against Corporate Debtor |

The Tribunal admitted the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the Operational Creditor against the Corporate Debtor for unpaid invoices. The Corporate Debtor's disputes were not substantiated, leading to an ex-parte proceeding. The Tribunal had jurisdiction, and within the limitation period, initiated the Corporate Insolvency Resolution Process. An interim resolution professional was appointed, a moratorium imposed, and the Applicant directed to deposit funds for immediate expenses. Post-order, communication and compliance requirements were specified, concluding the matter in line with the Tribunal's decision.

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Issues:
- Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency process.
- Claim of unpaid invoices by Operational Creditor against Corporate Debtor.
- Disputes raised by Corporate Debtor in response to the demand notice.
- Jurisdiction of the Tribunal to entertain the application.
- Timeliness of the application.
- Appointment of interim resolution professional.
- Imposition of moratorium under Section 14 of the Code.
- Direction for deposit by the Applicant for immediate expenses.
- Communication and compliance requirements post-order.

Analysis:

1. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor against the Corporate Debtor for unpaid invoices totaling to Rs. 63,36,049. The Operational Creditor, engaged in the sale and installation of equipment, alleged non-payment by the Corporate Debtor despite reminders and a demand notice issued under the Code.

2. The Corporate Debtor, engaged in building installation, contested the claims stating issues with the work order, project delays, and poor quality work. Disputes regarding after-sales services and payment of bills were raised by the Corporate Debtor, leading to a lack of resolution between the parties.

3. The Tribunal found that the application was within the period of limitation and had jurisdiction to entertain the matter since the registered office of the Corporate Debtor was in Delhi. The Corporate Debtor failed to respond to the application or appear before the Tribunal, resulting in an ex-parte proceeding against them.

4. Considering the facts and material on record, the Tribunal admitted the application, ordering the commencement of the Corporate Insolvency Resolution Process. An interim resolution professional was appointed to oversee the process and submit a report within 30 days, as mandated by the Code.

5. A moratorium was imposed under Section 14 of the Code, restricting various actions against the Corporate Debtor's assets. The Applicant was directed to deposit Rs. 2 lakhs to cover immediate expenses, which would be reimbursed as part of the costs of the Corporate Insolvency Resolution Process.

6. Post-order, communication and compliance requirements were outlined, including the dissemination of the order to the parties involved, the appointed IRP, IBBI, and ROC for record-keeping and updates. The application was allowed and disposed of in accordance with the Tribunal's order.

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