Tribunal Admits Insolvency Petition, Declares Moratorium: IRP Appointed to Oversee Resolution Process The Tribunal admitted the petition under Section 9 of the Insolvency and Bankruptcy Code, declaring a moratorium under Section 14. An Interim Resolution ...
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Tribunal Admits Insolvency Petition, Declares Moratorium: IRP Appointed to Oversee Resolution Process
The Tribunal admitted the petition under Section 9 of the Insolvency and Bankruptcy Code, declaring a moratorium under Section 14. An Interim Resolution Professional (IRP) was appointed to oversee the resolution process, including forming a Committee of Creditors. The petition was found complete, establishing default in payment of operational debt exceeding Rs. 1,00,000. The IRP was instructed to follow IBC requirements, submit progress reports, and file necessary forms promptly. The moratorium imposed restrictions on actions against the Corporate Debtor, ensuring compliance with statutory provisions.
Issues: 1. Validity of demand notice service 2. Dispute regarding operational debt 3. Timeliness of the Corporate Petition (C.P.)
Issue 1: Validity of demand notice service The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor against the Corporate Debtor. The demand notice in Form 3 dated 02.11.2019 was sent to the registered address of the Corporate Debtor as per the master data. The notice was accompanied by relevant documents and was served via speed post. The postal receipt and tracking report confirmed the proper service of the notice. Thus, the service of the demand notice was deemed valid.
Issue 2: Dispute regarding operational debt The Corporate Debtor admitted the occurrence of default towards the Operational Creditor in the reply filed. Consequently, there was no dispute regarding the liability between the parties, establishing the default in payment of the operational debt.
Issue 3: Timeliness of the Corporate Petition (C.P.) The Corporate Petition was filed within the period of limitation as all the invoices related to the operational debt were from the year 2019, and the petition was filed in 2020. Therefore, the filing of the C.P. was well within the statutory limitation period.
The Tribunal found the petition complete and established the default in payment of the Operational Debt, exceeding Rs. 1,00,000. Consequently, the petition was admitted under Section 9 of the IBC, and a moratorium was declared under Section 14 of the Code. The moratorium imposed various prohibitions on actions against the Corporate Debtor, including suits, asset disposal, and recovery actions. The Tribunal appointed an Interim Resolution Professional (IRP) from the approved panel for the NCLT, Chandigarh Bench, to oversee the resolution process. The IRP was directed to follow the necessary steps as mandated by the IBC and to constitute a Committee of Creditors. Regular progress reports were to be submitted to the Tribunal, and the IRP was required to file Form 2 within a week of the order.
In conclusion, the Tribunal admitted the petition, declared a moratorium, and appointed an IRP to manage the resolution process, ensuring compliance with the IBC provisions and guidelines.
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