Corporate debtor found in default for non-payment to operational creditor, leading to initiation of Corporate Insolvency Resolution Process

The tribunal found the corporate debtor in default of payment to the operational creditor for e-advertisement services. Despite the debtor's claims of poor services and disputes, no substantial evidence was presented post-validation of data. An Insolvency Resolution Professional (IRP) was appointed, and funds were directed to be deposited for expenses. A moratorium was imposed on the debtor under Section 14 of IBC, prohibiting certain actions. The judgment detailed the disputes over services and invoices, ultimately leading to the initiation of Corporate Insolvency Resolution Process (CIRP) against the debtor.

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Issues:
1. Application filed by operational creditor seeking to initiate CIRP against corporate debtor for alleged default.
2. Allegations of poor services and unethical approach by operational creditor as per corporate debtor's reply.
3. Dispute regarding services and invoices raised by operational creditor.
4. Adjudication of default in payment of operational debt by corporate debtor.
5. Appointment of Insolvency Resolution Professional (IRP) and deposit of funds.
6. Imposition of moratorium under Section 14 of IBC.

Issue 1: Application to initiate CIRP
The operational creditor filed an application under Section 9 of IBC 2016 against the corporate debtor for an alleged default in payment of outstanding balance for e-advertisement services. The applicant detailed the transactions, including emails, validation of leads, and invoices raised but not fully paid by the corporate debtor.

Issue 2: Allegations of poor services
The corporate debtor raised concerns about poor services and unethical approach by the operational creditor, citing deficiencies in services during a specific period. The corporate debtor claimed to have communicated disputes through emails and messages, requesting to pause the campaign due to service quality issues.

Issue 3: Dispute over services and invoices
The operational creditor denied the allegations of poor services, emphasizing the approval of successful leads through validation emails. The applicant argued that the corporate debtor's claims of deficiencies were unsubstantiated and aimed at creating disputes to avoid payment.

Issue 4: Adjudication of default
After reviewing the submissions and documents, the tribunal found that the default in payment by the corporate debtor was established. Despite the corporate debtor's claims of disputes, no evidence was presented to prove that invoices were disputed post-validation of data, leading to the dismissal of the alleged disputes as insubstantial.

Issue 5: Appointment of IRP and funds deposit
The tribunal appointed an Insolvency Resolution Professional (IRP) and directed the operational creditor to deposit funds with the IRP to cover expenses. The appointment was subject to the IRP's compliance with necessary regulations and no pending disciplinary proceedings against them.

Issue 6: Imposition of moratorium
Following the admission of the application under Section 9(5) of IBC 2016, a moratorium was imposed on the corporate debtor as per Section 14(1), prohibiting certain actions. The terms of the moratorium were outlined, and compliance procedures were specified for communication of the order to relevant parties and authorities.

This comprehensive analysis covers the key issues addressed in the legal judgment, providing a detailed overview of the tribunal's decision and the reasoning behind it.

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