Tribunal Admits Insolvency Petition, Appoints Resolution Professional to Manage Corporate Debtor

The Tribunal admitted the petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, against a limited company for non-payment of dues. An ex parte hearing was conducted as the Corporate Debtor did not respond. The Tribunal found the debt valid and undisputed, appointing an Interim Resolution Professional to manage the Corporate Debtor's affairs and enforce a moratorium, in line with the Code's provisions. The judgment upheld the legal framework of insolvency proceedings and safeguarded creditors' rights.

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Issues:
1. Petition filed under Section 9 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency process against a limited company.
2. Default in payment of operational debt by the Corporate Debtor.
3. Appointment of Interim Resolution Professional.
4. Moratorium following the admission of the petition.

Issue 1: Petition under Section 9 of IBC, 2016
The petition was filed by a Proprietorship concern against a limited company under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petitioner sought to initiate the Corporate Insolvency process against the Corporate Debtor, alleging non-payment of dues amounting to &8377;13,88,969. The petition was filed within the period of limitation, and despite several opportunities, the Corporate Debtor did not respond, leading to an ex parte hearing.

Issue 2: Default in Payment of Operational Debt
The petitioner, engaged in manufacturing and trading of cycle parts, supplied various parts to the Corporate Debtor, raising invoices totaling to the claimed amount. Despite a demand notice and subsequent reminders, the Corporate Debtor neither disputed the debt nor made any payments towards the outstanding dues. The Tribunal found the debt to be valid and undisputed, establishing the default in payment by the Corporate Debtor.

Issue 3: Appointment of Interim Resolution Professional
In the absence of naming an Insolvency Resolution Professional by the petitioner, the Tribunal appointed Mr. Deepankur Sharma as the Interim Resolution Professional. Mr. Sharma was directed to manage the affairs of the Corporate Debtor, suspend the powers of the Board of Directors, and take control of the assets. Additionally, he was tasked with constituting a Committee of Creditors, preparing asset inventory, and sending regular progress reports to the Tribunal.

Issue 4: Moratorium Following Admission of the Petition
Upon admitting the petition under Section 9(5) of IBC, 2016, a moratorium was declared, prohibiting various actions against the Corporate Debtor, as outlined in Section 14(1) of the Code. The Tribunal directed the Operational Creditor to deposit a specified amount with the Interim Resolution Professional to cover expenses. The moratorium period would entail certain provisions as per Sections 14(2) to 14(4) of the Code.

The judgment comprehensively addressed the issues involved, ensuring due process and adherence to the Insolvency and Bankruptcy Code, 2016. The Tribunal's decision to admit the petition, appoint an Interim Resolution Professional, and enforce a moratorium reflects the legal framework governing insolvency proceedings and the protection of creditors' rights in such cases.

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