Tribunal admits CIRP petition, appoints IRP, invokes moratorium. Interim applications by Debtor dismissed.

The tribunal admitted the petition for initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, appointed Mr. Partha Sarathy Sarkar as the Interim Resolution Professional (IRP), and invoked a moratorium. The tribunal dismissed the interim applications filed by the Corporate Debtor.

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Issues Involved:
1. Authorization of Ms. Anita Patole to file the petition.
2. Limitation period for filing the petition.
3. Default and continuous default by the Corporate Debtor.
4. Consideration of One Time Settlement (OTS) and settlement proposals.
5. Commencement of Corporate Insolvency Resolution Process (CIRP).
6. Interim Applications filed by the Corporate Debtor.

Issue-Wise Analysis:

1. Authorization of Ms. Anita Patole:
The tribunal examined whether Ms. Anita Patole was duly authorized to file the petition on behalf of the Financial Creditors. The affidavit in support of the application was filed by Ms. Anita Patole, and authority letters were annexed. The tribunal found that Ms. Anita Patole was duly authorized by both the applicants, as evidenced by the authority letters and resolutions from the respective boards of the applicants.

2. Limitation Period for Filing the Petition:
The tribunal considered whether the application was filed within the limitation period. The Financial Creditors argued that the Corporate Debtor's reference to the Board for Industrial and Financial Reconstruction (BIFR) from 08.12.2000 to 01.12.2016 created a bar on legal proceedings, thus extending the limitation period. The tribunal referred to Section 238A of the Insolvency and Bankruptcy Code (IBC) and relevant judgments, concluding that the period during which the BIFR reference was pending should be excluded. Therefore, the petition was filed within the limitation period.

3. Default and Continuous Default by the Corporate Debtor:
The tribunal examined the default by the Corporate Debtor in repaying the financial debt. The Financial Creditors provided evidence of multiple defaults and restructuring agreements. The tribunal found that the Corporate Debtor defaulted on several occasions, and the last payment was made on 25.10.2000. The tribunal also considered the acknowledgment of debt through the proposed One Time Settlement (OTS), which extended the limitation period. Thus, the tribunal concluded that there was a continuous default by the Corporate Debtor.

4. Consideration of One Time Settlement (OTS) and Settlement Proposals:
The tribunal considered the settlement proposals put forth by the Corporate Debtor. The OTS sanctioned in 2008 was canceled in 2009, and no mutually acceptable settlement was reached. The tribunal referred to the Hon'ble High Court's order directing consideration of the settlement but noted that the Adjudicating Authority cannot compel a party to settle. Therefore, the tribunal decided to proceed with the main petition.

5. Commencement of Corporate Insolvency Resolution Process (CIRP):
The tribunal, after detailed consideration of the application and documents, found that the Corporate Debtor had defaulted on the payment of the claim amount. Consequently, the tribunal commenced the CIRP against the Corporate Debtor. Mr. Partha Sarathy Sarkar was appointed as the Interim Resolution Professional (IRP), and a moratorium under Section 14 of the IBC was invoked.

6. Interim Applications Filed by the Corporate Debtor:
- IA No. 256/JPR/2020: The Corporate Debtor alleged that the Financial Creditors furnished false information and concealed material particulars. The tribunal found these contentions to be mere technicalities and dismissed the application.
- IA No. 334/JPR/2020: The Corporate Debtor sought directions in terms of the High Court's order to consider the settlement. The tribunal, referring to the Hon'ble Supreme Court's judgment, dismissed the application, stating that the settlement proposals were already considered.

Conclusion:
The tribunal admitted the petition for initiation of CIRP against the Corporate Debtor, appointed Mr. Partha Sarathy Sarkar as the IRP, and invoked a moratorium. The interim applications filed by the Corporate Debtor were dismissed.

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