2022 (4) TMI 1159 - Tri - Insolvency and Bankruptcy

Tribunal Admits Company Petition for Insolvency, Initiates CIRP

The Tribunal admitted the Company Petition under section 9 of the Insolvency & Bankruptcy Code, 2016, finding default in payment by the Corporate ... 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:- The Last date of invoice is 13.10.2016 and the date of filing of CP is well within the Limitation. This Bench has jurisdiction to deal with this Company Petition. The date of default as per the mode of payment in the last invoice is 20.10.2016 - The total debt due and payable to the Operational Creditor is ₹ 42,28,463/-. The Petition made by the Operational Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is in excess of minimum amount of rupees one lakh stipulated under section 4(1) of the IBC. Therefore, the debt and default stands established and there is no reason to deny the admission of the Petition. In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor. Petition admitted - moratorium declared. Issues:- Company Petition under section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC)- Jurisdiction of the Adjudicating Authority- Default in payment by Corporate Debtor- Claims and counterclaims by Operational Creditor and Corporate Debtor- Admission of the Petition and initiation of Corporate Insolvency Resolution Process (CIRP)- Appointment of Interim Resolution Professional (IRP)- Moratorium under section 14 of the IBCAnalysis:1. Company Petition under IBC:The case involves a Company Petition filed under section 9 of the Insolvency & Bankruptcy Code, 2016 by an Operational Creditor seeking to initiate Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor for non-payment of dues amounting to &8377; 42,28,463.2. Jurisdiction of the Adjudicating Authority:The Adjudicating Authority established its jurisdiction based on the incorporation details of the Corporate Debtor and the location of its registered office, affirming its competence to handle the petition.3. Default in Payment by Corporate Debtor:The Operational Creditor alleged that the Corporate Debtor failed to pay the balance amount due despite partial payments made, leading to a default situation as per the terms of the contract.4. Claims and Counterclaims:Both parties presented their versions of events regarding the work orders, invoices, payments made, and alleged discrepancies in quantities and amounts, resulting in a dispute over the outstanding dues.5. Admission of the Petition and Initiation of CIRP:After considering the arguments and evidence presented, the Adjudicating Authority found the Company Petition to be complete and established the default in payment by the Corporate Debtor, leading to the admission of the Petition and initiation of CIRP against the Corporate Debtor.6. Appointment of Interim Resolution Professional:An Insolvency Professional was appointed as the Interim Resolution Professional to oversee the Corporate Insolvency Resolution Process of the Corporate Debtor, with specific directions regarding the management of the company during the CIRP period.7. Moratorium under Section 14 of the IBC:The Order included provisions for a moratorium under section 14 of the IBC, outlining restrictions on legal actions against the Corporate Debtor, asset transfers, and property recovery during the CIRP period, ensuring the continuity of essential services to the company.This detailed analysis of the judgment covers the key issues addressed by the Tribunal in the matter of the Company Petition under the Insolvency & Bankruptcy Code, resulting in the admission of the Petition and the initiation of Corporate Insolvency Resolution Process against the Corporate Debtor.