Key Points in Insolvency Petition: Proper Service, Debt Admitted, Timely Filing

The Tribunal found that the demand notice was properly served on the corporate debtor. The operational debt was not disputed as the debtor admitted owing the money due to financial crisis and partial payments were acknowledged. The application was filed within the limitation period. With evidence of unpaid debt exceeding Rs. 1,00,000 and compliance with Section 9 of the Insolvency and Bankruptcy Code, the petition was admitted. A moratorium was declared under Section 14, and an Interim Resolution Professional was appointed to manage the resolution process, including forming a Committee of Creditors and submitting progress reports.

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Issues:
1. Proper service of demand notice
2. Disputed operational debt by the corporate debtor
3. Filing of the application within limitation

Analysis:
1. The Tribunal considered whether the demand notice was properly served. The notice was sent via post and email to the corporate debtor's registered address. Tracking reports showed successful delivery via post and no bounce-back of the email. Thus, the Tribunal held that the demand notice was duly served.

2. The next issue was whether the operational debt was disputed by the corporate debtor. The operational creditor claimed the debt was challenged on grounds of limitation. However, the corporate debtor admitted owing the money due to financial crisis and acknowledged a partial payment. Bank statements were provided as evidence, showing payments made to the operational creditor. The Tribunal found no dispute regarding the liability of the corporate debtor.

3. Another consideration was whether the application was filed within the limitation period. The last payment made by the corporate debtor was on 17.11.2017, and the application was filed on 18.11.2020, within the limitation period. The Tribunal confirmed the timely filing of the petition.

4. The Tribunal reviewed the application and found it complete, establishing the default in payment of the operational debt. The total unpaid debt was over Rs. 1,00,000, with invoices and ledger accounts provided as evidence. The demand notice was sent and acknowledged, further supporting the operational creditor's claim. The conditions under Section 9 of the Insolvency and Bankruptcy Code were satisfied, leading to the admission of the petition.

5. Consequently, the petition was admitted under Section 9 of the IBC, and a moratorium was declared under Section 14 of the Code. Various prohibitions were imposed, including the institution of suits, disposal of assets, and recovery actions. The Tribunal appointed an Interim Resolution Professional (IRP) to handle the case and oversee the resolution process. The IRP was directed to follow the necessary steps mandated under the IBC.

6. The IRP was tasked with collating claims, constituting a Committee of Creditors, and submitting progress reports to the Tribunal. The Tribunal ensured communication of the order to all relevant parties and directed the petitioner's counsel to provide a copy to the IRP promptly. Additionally, the Registry was instructed to send a copy of the order to the IRP via email without delay.

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