Tribunal admits Creditor's application for Corporate Insolvency Resolution Process under IBC

The Tribunal admitted the Operational Creditor's application for initiating Corporate Insolvency Resolution Process against the Corporate Debtor, imposing a moratorium under Section 14 of IBC. An Interim Resolution Professional was appointed, and management of the Corporate Debtor vested in the IRP during the CIRP period. The Operational Creditor was directed to deposit a sum for expenses, with reporting and compliance requirements outlined. The Corporate Debtor's contentions were deemed unsubstantiated, and the application under Section 9 was found complete and compliant with relevant provisions of the Code.

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Issues Involved:
Initiation of Corporate Insolvency Resolution Process under Section 9 of IBC against a Corporate Debtor.

Detailed Analysis:

1. Application by Operational Creditor:
The Operational Creditor, Leoch Batteries Private Limited, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 against the Corporate Debtor, NPS Power Solutions Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was supported by invoices showing an outstanding amount of Rs. 1,29,42,045 due and payable by the Corporate Debtor.

2. Arguments by Operational Creditor:
The Operational Creditor's counsel presented evidence of the debt, including balance confirmation letters, emails acknowledging the due amount, ledger accounts, and bank statements. The counsel argued that the application was within the limitation period as the last payment was made on 15.10.2018, and the application was filed on 16.01.2020.

3. Arguments by Corporate Debtor:
The Corporate Debtor contended that there were disputes regarding the goods provided and payments made to the Operational Creditor, denying any debt or default on their part.

4. Findings & Conclusion:
The Tribunal considered the submissions and evidence provided. It noted that the notice of default under Section 8 had been delivered, and the affidavit under Section 9(3)(b) of IBC was filed. The application was found to be within the limitation period. The Corporate Debtor's contentions were deemed unsubstantiated, and the application under Section 9 was found to be complete and compliant with the relevant provisions of the Code.

5. Orders Passed:
The Tribunal admitted the Operational Creditor's application for initiating CIRP against the Corporate Debtor. A moratorium under Section 14 of IBC was imposed. An Interim Resolution Professional (IRP) was appointed, and the management of the Corporate Debtor vested in the IRP during the CIRP period. The Operational Creditor was directed to deposit a sum for expenses, and various reporting and compliance requirements were outlined. The matter was listed for a progress report, and certified copies of the order were to be issued to concerned parties upon application.

This detailed analysis of the judgment provides a comprehensive overview of the legal proceedings and the Tribunal's decision regarding the initiation of the Corporate Insolvency Resolution Process.

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