Tribunal admits petition for Corporate Insolvency Resolution Process under Insolvency & Bankruptcy Code

The Tribunal admitted the petition for the initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency & Bankruptcy Code, 2016 against the Corporate Debtor due to non-payment of dues. The Corporate Debtor's objections regarding a pre-existing dispute lacked substantial evidence, leading to the dismissal of arguments on limitation and dispute existence. An Interim Resolution Professional was appointed, a moratorium declared, and the Operational Creditor directed to provide initial finance for the process, ensuring compliance with relevant provisions of the Code.

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Issues:
1. Initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency & Bankruptcy Code, 2016.
2. Existence of pre-existing dispute between the Operational Creditor and the Corporate Debtor.
3. Appointment of Interim Resolution Professional (IRP) and declaration of moratorium.

Detailed Analysis:
1. The Operational Creditor, M/s. Hind Tradex Limited, filed a petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. AGL Televentures Private Limited, due to non-payment of dues amounting to Rs. 1,96,30,000. The Operational Creditor supplied goods to the Corporate Debtor, who defaulted on payments, leading to the demand notice issued under section 8 of IBC, 2016.

2. The Corporate Debtor disputed the liability, claiming dissatisfaction with the goods supplied, alleging that the products were fake and counterfeit, and raised a pre-existing dispute regarding the quality and performance of the goods. The Corporate Debtor relied on judgments emphasizing the necessity of a genuine dispute existing before the demand notice. The Corporate Debtor also raised concerns about the demand notice not being served and highlighted an FIR against an office boy regarding stolen documents.

3. The Tribunal analyzed the contentions of both parties and found that the Corporate Debtor's objections lacked substantial evidence to prove the existence of a pre-existing dispute. The Tribunal dismissed the Corporate Debtor's arguments regarding limitation and pre-existing dispute, emphasizing the lack of evidence supporting the claims made in the letter dated 16.04.2018. Consequently, the Tribunal admitted the petition, initiating the CIRP against the Corporate Debtor.

4. The Tribunal appointed Mr. Vikky Dang as the Interim Resolution Professional (IRP) from the IBBI list, directing him to manage the Corporate Debtor's affairs. A moratorium was declared to prohibit legal actions against the Corporate Debtor, ensuring the continuity of essential services. The IRP was instructed to comply with relevant provisions of the Insolvency and Bankruptcy Code, and the Operational Creditor was directed to provide initial finance for the CIRP process. The Registry was tasked with updating the Corporate Debtor's status with the Ministry of Corporate Affairs.

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