2022 (1) TMI 16 - Tri - Insolvency and Bankruptcy

Tribunal Admits Insolvency Application, Orders Moratorium: Operational Creditors' Claim Uncontroverted

The Tribunal admitted the application under section 9(5) of the Insolvency and Bankruptcy Code, 2016, finding the Applicant's claim of non-payment of dues ... 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:- As per Form V, Part IV, the Corporate Debtor is liable to pay an outstanding sum of ₹ 11,51,154/-. The date of default is 01.07.2019 and the present application was filed on 26.12.2019, hence the debt is not time barred and the application is filed within the period of limitation - The Applicant has filed an affidavit under section 9(3)(b) dated 18.12.2019 affirming that no notice of dispute has been given by the corporate debtor relating to dispute of the unpaid operational debt. The present application is complete and the Applicant is entitled to claim its dues, which remain uncontroverted by the Corporate Debtor, establishing the default in payment of the operational debt beyond doubt. The present application is admitted, in terms of section 9 (5) of IBC, 2016 - Applicationa dmitted - moratorium declared. Issues:Application under section 9 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency process against a Corporate Debtor.Detailed Analysis:1. The Applicant, a forwarding services provider, filed an application under section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency process against the Corporate Debtor, alleging non-payment of dues.2. The Applicant claimed that the Corporate Debtor had availed forwarding services and had outstanding dues of Rs. 10,14,227, after making a partial payment of Rs. 1,56,55,435 out of a total of Rs. 1,66,63,662.3. A demand notice was issued to the Corporate Debtor, calling for payment of the outstanding amount, which was duly delivered and acknowledged, but no payment or dispute was raised by the Corporate Debtor.4. The Applicant served the application through email and speed post, which were also duly delivered to the Corporate Debtor, who failed to respond or appear before the Tribunal.5. The Tribunal found that the debt was not time-barred, as the application was filed within the limitation period, and the Applicant had submitted an affidavit affirming no dispute regarding the debt.6. With the Corporate Debtor being proceeded ex-parte, the Tribunal had jurisdiction to entertain the application, as the Corporate Debtor's registered office was in Delhi.7. The Tribunal concluded that the Applicant's claim was uncontroverted, establishing a default in payment of operational debt, and admitted the application under section 9(5) of the IBC, 2016.8. An Interim Resolution Professional (IRP) was appointed, subject to certain conditions, and the Operational Creditors were directed to deposit a sum of Rs. 2 lakhs with the IRP to cover expenses.9. The admission of the application triggered a moratorium under Section 14(1) of the IBC, 2016, prohibiting certain actions against the Corporate Debtor, with specific provisions coming into force during this period.10. The Registry was instructed to communicate the order to all relevant parties, including the Applicant, Corporate Debtor, and IRP, with additional copies forwarded to the Insolvency and Bankruptcy Board of India (IBBI) and the Registrar of Companies (ROC) for compliance and record-keeping purposes.