2021 (12) TMI 287 - Tri - Insolvency and Bankruptcy

Tribunal Admits Insolvency Application, Initiates Corporate Resolution Process

The tribunal admitted the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, and initiated the Corporate Insolvency Resolution ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - HELD THAT:- The Corporate Debtor has taken objection regarding some pre-existing dispute between the parties regarding services provided by the Applicant. Further, it is stated by the Corporate Debtor that it had suffered losses due to conduct of the Applicant during his tenure. It is further submitted by the Corporate Debtor that no amount is due towards the Corporate Debtor since a sum of ₹ 15 Lakhs in cash has already been paid to the Applicant - there is no necessity of going into the issues alleged by the Corporate Debtor as there is a specific admission made by the Corporate Debtor as regards to the undisputed debt of ₹ 9 Lakhs which is due and payable by it to the Applicant and which is more than the threshold limit ₹ 1,00,000/-. The same is clearly recorded in the order of this Adjudicating Authority dated 27.01.2021. Since the admission of debt made on part of the Corporate Debtor is for an amount, which is more than ₹ 1,00,000/-, therefore the same is sufficient to trigger CIR Process against the Corporate Debtor. Thus it is concluded that a default has occurred on part of the Corporate Debtor and the same has also been admitted by the Corporate Debtor - application admitted - moratorium declared. Issues Involved:1. Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016.2. Non-payment of salary and dues by the Corporate Debtor.3. Alleged unprofessional conduct and counterclaims by the Corporate Debtor.4. Admission of undisputed debt by the Corporate Debtor.5. Appointment of Interim Resolution Professional (IRP).Detailed Analysis:1. Initiation of CIRP under Section 9 of IBC, 2016:The application was filed by Mr. Mohit Kalkhande under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Set Sanayi Elektrik-Tesisat Taahut Ve Ticaret India Private Limited.2. Non-payment of Salary and Dues:The applicant was employed by the Corporate Debtor and was promoted to a higher position with an increased salary package. Despite his diligent work, the Corporate Debtor failed to pay his salary on time. Several emails and a legal notice were sent by the applicant requesting the release of unpaid salary and other dues, but the Corporate Debtor did not respond adequately. The applicant claimed a total outstanding amount of Rs. 25,06,838, including Provident Fund dues.3. Alleged Unprofessional Conduct and Counterclaims by the Corporate Debtor:The Corporate Debtor raised objections regarding the applicant's professional conduct, alleging that he came late to the office, failed to fulfill job obligations, and caused financial losses to the company. The Corporate Debtor also claimed that Rs. 15 Lakh was paid in cash to the applicant, which was allegedly misappropriated by him.4. Admission of Undisputed Debt by the Corporate Debtor:Despite the objections, the Corporate Debtor admitted to an undisputed debt of Rs. 9 Lakhs during the hearing. The tribunal noted that this admission was sufficient to trigger the CIRP, as the amount exceeded the threshold limit of Rs. 1,00,000.5. Appointment of Interim Resolution Professional (IRP):The tribunal admitted the application under Section 9 and initiated the CIRP. Since the applicant did not propose an IRP, the tribunal appointed Mr. Rajesh Mittal as the IRP. The applicant was directed to deposit Rs. 2,00,000 with the IRP to meet the expenses of the CIRP. The IRP was instructed to take charge immediately, and the necessary consent and disclosures were to be filed within seven days.Conclusion:The tribunal concluded that a default had occurred on the part of the Corporate Debtor, and the same was admitted by the Corporate Debtor. Therefore, the application was admitted, and the CIRP was initiated. A moratorium was declared as per Section 14 of the IBC, 2016, imposing prohibitions on suits, asset transfers, foreclosure actions, and recovery of property. The order was communicated to all relevant parties and authorities.