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 Process (CIRP) against M/s. Set Sanayi Elektrik-Tesisat Taahut Ve Ticaret India Private Limited. An Interim Resolution Professional (IRP) was appointed, and a moratorium was declared under Section 14 of the IBC, 2016. The Corporate Debtor's admission of an undisputed debt triggered the CIRP despite objections raised. The tribunal directed the applicant to deposit funds for CIRP expenses, and the IRP was instructed to assume responsibilities promptly.

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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.

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