Insolvency Application Admitted: Creditor Claims Rs. 4,00,000 Against Corporate Debtor

The Tribunal admitted the application under section 9(5) of the Insolvency and Bankruptcy Code, 2016, filed by M/s. Finex Consultancy Services against M/S Plus Corporate Ventures Private Limited. The Corporate Debtor failed to contest the claim for outstanding dues of Rs. 4,00,000, leading to the appointment of Mr. Anil Rustgi as the Insolvency Resolution Professional. The Operational Creditor was directed to deposit Rs. 2 lakhs for expenses, and a moratorium was imposed on the Corporate Debtor under Section 14(1) of the Code. Compliance reports were required to be submitted to relevant authorities.

---

---

Issues:
- Application under section 9 of Insolvency and Bankruptcy Code, 2016
- Agreement between Applicant and Corporate Debtor
- Termination of agreement without compliance
- Outstanding dues and non-payment by Corporate Debtor
- Demand notice and admission of dues by Corporate Debtor
- Filing of application, service, and jurisdiction
- Admittance of application and appointment of Insolvency Resolution Professional
- Direction for deposit by Operational Creditor
- Moratorium and communication of order

Analysis:
The judgment pertains to an application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Finex Consultancy Services against M/S Plus Corporate Ventures Private Limited seeking initiation of the Corporate Insolvency Resolution Process. The Applicant, a sole proprietor, entered into an agreement with the Corporate Debtor for consultancy services. The agreement specified the professional fees and payment terms. However, the Corporate Debtor terminated the agreement without complying with the termination clause, leading to outstanding dues of Rs. 4,00,000. Despite repeated requests and admission of dues by the Corporate Debtor, no payment was made, prompting the Applicant to issue a demand notice under the IBC, 2016.

The Applicant followed due process by filing the application, serving copies to the Corporate Debtor, and affirming no dispute regarding the unpaid operational debt. The Tribunal found the application complete and admitted it as the Corporate Debtor did not contest the claim or file a reply. The default in payment was established, and no settlement was reached despite a request for deferment. Consequently, the Tribunal admitted the application under section 9(5) of the IBC, 2016.

In terms of appointment, Mr. Anil Rustgi was proposed as the Insolvency Resolution Professional, subject to certain conditions. The Operational Creditor was directed to deposit Rs. 2 lakhs with the Interim Resolution Professional to cover expenses. The moratorium under Section 14(1) of the Code was imposed on the Corporate Debtor, with specific provisions coming into force during this period. The order was to be communicated to all relevant parties, including the IRP, and compliance reports were to be sent to the Registrar, NCLT, and ROC for updating Master Data.

---