2021 (9) TMI 747 - Tri - Insolvency and Bankruptcy

Tribunal Admits Insolvency Application, Initiates Resolution Process for Corporate Debtor

KDH Travels Private Limited Versus India Sports Flashes Private Limited

The Tribunal admitted the application under section 9 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - Time limitation - HELD THAT:- The Corporate Debtor has neither filed any reply nor appeared before the bench. The corporate debtor was proceeded ex-parte on 07.07.2021. As per Form V, Part IV, the Corporate Debtor is liable to pay an outstanding sum of Rs. ₹ 6,91,594/- along with interest @ 24% p.a. of ₹ 1,25,161.94/- - The date of default as per part IV, has occurred from the expiry of ten days of receipt of Invoice & the date of receipt of the last invoices was on 08.04.2019. The present application was filed on 04.02.2020, hence the debt is not time barred and the application is filed within the period of limitation. The registered office of corporate debtor is situated in Delhi and therefore this Tribunal has jurisdiction to entertain and try this application - the present application is complete and the Applicant is entitled to claim its dues, which remain uncontroverted by the Corporate Debtor, establishing the default in payment of the operational debt beyond doubt. The present application is admitted, in terms of section 9(5) of IBC, 2016. Application admitted - moratorium declared. Issues:- Application under section 9 of Insolvency and Bankruptcy Code, 2016- Breach of agreement and outstanding dues- Ex-parte proceedings against the Corporate Debtor- Calculation of outstanding sum and interest- Jurisdiction of the Tribunal to entertain the application- Appointment of Insolvency Resolution Professional (IRP)- Direction to deposit funds with the IRP- Imposition of moratorium under Section 14(1) of the CodeAnalysis:The judgment pertains to an application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 seeking to initiate the Corporate Insolvency Resolution Process against a Corporate Debtor. The Applicant, a private limited company engaged in tour & travel services, entered into an agreement with the Corporate Debtor for various services. Despite reminders and a demand notice, a significant amount of dues remained unpaid by the Corporate Debtor, leading to the application being filed. The Tribunal noted that the Corporate Debtor failed to respond or appear, resulting in ex-parte proceedings being conducted.The Tribunal meticulously analyzed the outstanding sum owed by the Corporate Debtor, taking into account the terms of the agreement and the default in payment. It was established that the debt was not time-barred, and the application was within the period of limitation. The Applicant provided an affidavit affirming the absence of any dispute regarding the unpaid operational debt. Given the jurisdiction of the Tribunal over the Corporate Debtor's registered office location, the application was deemed admissible.Furthermore, the Tribunal appointed an Insolvency Resolution Professional (IRP) to oversee the Corporate Insolvency Resolution Process. Specific conditions and disclosures were mandated for the appointed IRP. Additionally, the Operational Creditors were directed to deposit a specified sum with the IRP to cover necessary expenses. The imposition of a moratorium under Section 14(1) of the Code was ordered, restricting certain actions concerning the Corporate Debtor during the moratorium period.In conclusion, the Tribunal admitted the application, establishing the default in payment by the Corporate Debtor. Various directions were issued regarding the appointment of the IRP, fund deposition, and the imposition of a moratorium, ensuring compliance and procedural adherence throughout the Corporate Insolvency Resolution Process.