Tribunal Admits Application under Insolvency Code, Orders Moratorium & IRP Appointment

The Tribunal admitted the Application under Section 9(5) of the Insolvency and Bankruptcy Code, 2016, finding the operational creditor's claim valid against the Corporate Debtor for outstanding dues. An Interim Resolution Professional (IRP) was appointed, and the Applicant was directed to deposit funds with the IRP. A moratorium was imposed on the Corporate Debtor under Section 14(1), and the Tribunal aimed to facilitate the resolution process while safeguarding the interests of the parties involved in the insolvency proceedings.

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Issues:
1. Application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor.
2. Outstanding dues and non-payment by the Corporate Debtor.
3. Ex-parte proceedings against the Corporate Debtor.
4. Appointment of Interim Resolution Professional.
5. Moratorium and deposit requirement.

Analysis:

1. The Application was filed by Givaudan (India) Private Limited against Captivate Foods Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Applicant claimed that an amount of Rs. 35,73,712/- was due and payable by the Corporate Debtor, out of which only Rs. 2,50,000/- had been paid, leaving Rs. 32,65,110/- outstanding. Additionally, there was a differential tax liability of Rs. 2,59,875/- and interest on sales tax due, totaling Rs. 35,73,712/-.

2. The Applicant provided evidence of invoices issued, delivery of goods, and non-payment by the Corporate Debtor despite the stipulated payment terms. The Corporate Debtor failed to respond to a demand notice and subsequent legal counsel's notice, leading to the Application under Section 9 of the Code. The Tribunal found the claim of the operational creditor to be valid, as the Corporate Debtor did not contest the debt or raise any dispute.

3. Despite various opportunities given, the Corporate Debtor did not contest the claim, leading to ex-parte proceedings. The Tribunal found that the debt was not time-barred, and the Application was within the period of limitation. The Corporate Debtor's failure to make payments and lack of response further supported the admission of the debt.

4. The Tribunal admitted the Application under Section 9(5) of the Code, establishing the default in payment of operational debt. An Interim Resolution Professional (IRP) was appointed, and the Applicant was directed to deposit Rs. 2,00,000/- with the IRP to cover expenses. The moratorium under Section 14(1) was imposed on the Corporate Debtor, prohibiting certain actions, with additional regulations in force during the moratorium period.

5. The appointment of the IRP, deposit requirement, and communication of the order to the parties involved and relevant authorities were detailed in the judgment to ensure compliance with the Code and regulations. The Tribunal's decision aimed to facilitate the resolution process and protect the interests of the parties involved in the insolvency proceedings.

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