2021 (11) TMI 184 - Tri - Insolvency and Bankruptcy

Operational Creditor's Insolvency Petition Admitted under Section 9

Bidar Chemo Trades Versus Rchem Industries Private Limited

Bidar Chemo Trades Versus Rchem Industries Private Limited - TMI Issues:1. Filing of petition under Section 9 of the Insolvency and Bankruptcy Code, 2016.2. Jurisdiction of the Adjudicating Authority.3. Unpaid operational debt and default by the corporate debtor.4. Service of demand notice.5. Dispute of operational debt by the corporate debtor.6. Filing of petition within limitation.7. Compliance with statutory requirements.8. Admission of the petition under Section 9 of the IBC.9. Appointment of Interim Resolution Professional.Analysis:1. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor seeking to initiate Corporate Insolvency Process against the Corporate Debtor. The petition was supported by an affidavit and details of the unpaid operational debt.2. The jurisdiction of the Adjudicating Authority was established as the Corporate Debtor fell within the State of Punjab, where the Authorized Share Capital and Paid-Up Share Capital of the Company were specified.3. The Operational Creditor detailed the unpaid operational debt, providing evidence of invoices, payments, and cheques issued but returned unpaid by the Corporate Debtor. Despite a legal notice demanding payment, the Corporate Debtor failed to discharge its obligation.4. The service of the demand notice was proven through the original postal receipt and tracking report, demonstrating that the notice was properly served to the registered address of the Corporate Debtor.5. The Corporate Debtor did not dispute the operational debt even after receiving the demand notice, as evidenced by an email confirming inability to pay the debt. Hence, there was no pre-existing dispute regarding the debt.6. The petition was filed within the limitation period, as all invoices related to the debt were from the previous year, and the petition was filed in the subsequent year.7. The Operational Creditor complied with all statutory requirements, providing complete documentation and evidence of the unpaid operational debt, default, and lack of response from the Corporate Debtor.8. The petition was admitted under Section 9 of the IBC, and a moratorium was declared, imposing restrictions on legal actions against the Corporate Debtor and asset disposal during the insolvency resolution process.9. An Interim Resolution Professional was appointed to manage the resolution process, constitute a Committee of Creditors, and provide regular progress reports to the Tribunal.Additionally, a related CA seeking interim relief was disposed of in line with the judgment passed in the main petition, ensuring communication of the order to all relevant parties.