IBC Petition Admitted: Moratorium Declared, Interim Resolution Professional Appointed

The Tribunal admitted the Petition under Section 9 of IBC, 2016, declaring a moratorium and appointing an Interim Resolution Professional. Various directions were issued, including prohibiting suits against the Corporate Debtor, ensuring essential goods/services supply, and specifying moratorium effects until the completion of the Corporate Insolvency Resolution Process. The Registry was directed to inform the Registrar of Companies about the Corporate Debtor's CIRP status. The Operational Creditor was instructed to pay expenses to the Interim Resolution Professional, subject to adjustment by the Committee of Creditors.

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Issues involved: Petition under Section 9 of Insolvency & Bankruptcy Code, 2016 for default of Rs. 1,78,96,315 by Corporate Debtor, seeking admission of the Petition, commencement of Corporate Insolvency Resolution Process, granting moratorium, and appointment of Interim Resolution Professional.

Analysis:

1. Averments: The Operational Creditor filed a petition stating that the Corporate Debtor defaulted on rental payments as per the Lease Agreement, despite several reminders and notices for payment. The Corporate Debtor failed to repay the outstanding dues, leading to the issuance of demand notices and termination notice. An MOU was entered into, but the Corporate Debtor breached the terms by defaulting on payment again. The Operational Creditor issued another demand notice under the IBC for the unpaid operational debt, which the Corporate Debtor failed to repay within the statutory period of 10 days without raising any dispute.

2. Findings: The Tribunal noted that the Corporate Debtor had defaulted on rent payments as per the lease agreement and failed to clear the dues even after receiving demand notices and entering into an MOU. The Adjudicating Authority directed the Operational Creditor to issue notices to the Corporate Debtor, which were returned twice with "Addressee Refused" endorsement, leading to the Corporate Debtor being set ex-parte. The claim amount being more than Rs. One Lakh and the petition filed before the notification dated 24.03.2020, made the company petition admissible.

3. Decision: The Tribunal admitted the Petition under Section 9 of IBC, 2016, declaring a moratorium and issuing various directions, including prohibiting suits or proceedings against the Corporate Debtor, ensuring the supply of essential goods or services, and specifying the effect of the moratorium until the completion of the Corporate Insolvency Resolution Process. The Tribunal appointed an Interim Resolution Professional and directed the Registry to inform the Registrar of Companies about the Corporate Debtor's status under CIRP. The Operational Creditor was directed to pay a sum to the Interim Resolution Professional for expenses, subject to adjustment by the Committee of Creditors.

This detailed analysis of the judgment outlines the issues, the contentions of the parties, the findings of the Tribunal, and the final decision rendered in the matter.

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