Operational Creditor's Petition Granted: Corporate Debtor Admitted to Insolvency Proceedings

The petition under Section 9 of the Insolvency and Bankruptcy Code was filed by an Operational Creditor against a Corporate Debtor for unpaid operational debt. The Adjudicating Authority established jurisdiction over the Corporate Debtor, who failed to dispute the debt. The demand notice was validly served, and the petition was admitted, declaring a moratorium under Section 14 of the Code. An Interim Resolution Professional was appointed, and a Committee of Creditors was constituted to proceed with the resolution process in accordance with the legal requirements of the IBC.

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Issues:
1. Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Process.
2. Jurisdiction of the Adjudicating Authority over the Corporate Debtor.
3. Unpaid operational debt and default by the Corporate Debtor.
4. Validity of the demand notice served on the Corporate Debtor.
5. Dispute regarding the operational debt.
6. Admittance of the petition and declaration of moratorium under Section 14 of the Code.
7. Appointment of Interim Resolution Professional and constitution of Committee of Creditors.

Analysis:
1. The petition was filed under Section 9 of the IBC by the Operational Creditor seeking to initiate the Corporate Insolvency Process against the Corporate Debtor. The petitioner provided details of the service agreement, invoices, and reminders sent to the Corporate Debtor regarding the unpaid operational debt.

2. The jurisdiction of the Adjudicating Authority was established as the Corporate Debtor was a company incorporated under the Companies Act, falling within the State of Haryana. The Authorized and Paid-Up Share Capital of the Corporate Debtor was also disclosed.

3. The petition detailed the agreement between the parties, the invoiced amount, TDS deductions, and subsequent reminders for payment. The Corporate Debtor failed to make the payment, leading to the default in discharging its obligations towards the Operational Creditor.

4. The demand notice in Form 3 dated 07.02.2020 was properly served to the Corporate Debtor at its registered address, as evidenced by the postal receipt and tracking report attached to the petition.

5. The Corporate Debtor did not dispute the operational debt and admitted the default towards the Operational Creditor, eliminating any dispute regarding the liability.

6. The Tribunal found the petition complete and established the default in payment of the operational debt, which exceeded Rs. 1,00,000. Consequently, the petition was admitted, and a moratorium was declared under Section 14 of the IBC, imposing various restrictions on the Corporate Debtor.

7. An Interim Resolution Professional was appointed, and instructions were provided for the constitution of a Committee of Creditors. The IRP was directed to submit reports and take necessary steps under the IBC, ensuring the resolution process proceeds as per the legal requirements.

This detailed analysis of the judgment highlights the key issues addressed by the Tribunal and the legal implications of the decision in the context of the Insolvency and Bankruptcy Code, 2016.

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