Tribunal Admits Corporate Insolvency Petition, Appoints Resolution Professional: Moratorium in Effect

The Tribunal admitted the petition for corporate insolvency resolution against the Corporate Debtor, appointing an Interim Resolution Professional. A moratorium under Section 14 of the Insolvency and Bankruptcy Code was declared, imposing restrictions on legal actions and asset transactions. The order included exceptions to the moratorium and outlined the Interim Resolution Professional's duties. Notifications were sent to relevant parties for updates and public disclosure.

---

---

Issues:
1. Application for corporate insolvency resolution process under Section 7 of the Insolvency and Bankruptcy Code 2016 due to alleged default by the Respondent.

Analysis:
1. The application was filed by M/s. Capital Finance and Investments LLP against M/s. Shri Krishna Prasadam Ltd. for defaulting on an amount of &8377; 29,28,210/- as of 04.03.2020. The loan agreement, demand letters, and legal notices were presented as evidence of the default.

2. Despite multiple notices, the Corporate Debtor did not appear, leading to an ex-parte order dated 16.11.2021. The counsel for the Financial Creditor presented arguments and submissions supporting the claim of default by the Corporate Debtor.

3. The Financial Creditor's counsel highlighted the loan agreement terms, issuance of demand letters, and legal notice for the repayment of the due amount. The default was noted to have occurred on 04.10.2019, leading to the application under Section 7 of the Code.

4. The Tribunal reviewed the documents and arguments, concluding that the Financial Creditor substantiated the default claim by the Corporate Debtor. The Tribunal admitted the petition and initiated the corporate insolvency resolution process against the Corporate Debtor.

5. The Tribunal appointed an Interim Resolution Professional as per the requirements of Section 7(3)(b) of the Code. The satisfaction of default occurrence and completeness of the application under Section 7 were recorded before admitting the petition.

6. The Tribunal declared a moratorium under Section 14 of the Code, imposing restrictions on legal actions against the Corporate Debtor and asset transactions. Exceptions to the moratorium were specified, and the Interim Resolution Professional's duties and obligations were outlined.

7. The order was communicated to relevant parties, including the Financial Creditor, Corporate Debtor, Interim Resolution Professional, and Registrar of Companies, for necessary updates and notifications to the public domain.

---