Tribunal grants petition, initiates insolvency process against debtor, appoints new resolution professional.

The Tribunal granted the petition filed by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, initiating the Corporate Insolvency Resolution Process against the Corporate Debtor. The Tribunal allowed the change of the proposed Interim Resolution Professional and appointed a new one. The default in payment was verified, the petition was admitted, and a moratorium was declared. Directions were given regarding the Committee of Creditors, progress reports, and financial deposits by the Financial Creditor. The judgment emphasized compliance with the Code's provisions and due process.

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Issues Involved:
1. Filing of petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process.
2. Change of proposed Interim Resolution Professional.
3. Verification of default in payment and completeness of the application.
4. Appointment of Interim Resolution Professional.
5. Admission of the petition and declaration of moratorium.
6. Directions regarding the Committee of Creditors and progress reports.
7. Financial deposit by the Financial Creditor for expenses.

Issue 1: Filing of Petition under Section 7 of the Insolvency and Bankruptcy Code:
The petition was filed by the Financial Creditor to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor. The petition detailed the loan agreement, default in repayments, and non-compliance with an arbitrator's award. The jurisdiction of the Tribunal was established as per the master data of the Corporate Debtor.

Issue 2: Change of Proposed Interim Resolution Professional:
A request was made to change the proposed Interim Resolution Professional due to prior commitments. The Tribunal allowed the replacement and appointed a new Interim Resolution Professional after verifying the credentials and ensuring no disciplinary proceedings against him.

Issue 3: Verification of Default and Completeness of Application:
The occurrence of default and the debt amount were substantiated with evidence, including acknowledgment by the Corporate Debtor and financial records. The Respondent admitted the default in its reply. The application was found to be complete, and no disciplinary proceedings were pending against the proposed Resolution Professional.

Issue 4: Appointment of Interim Resolution Professional:
The Tribunal appointed the new Interim Resolution Professional, directing him to fulfill the obligations under the Insolvency and Bankruptcy Code, specifically Sections 15, 17, 18, 20, and 21.

Issue 5: Admission of the Petition and Declaration of Moratorium:
The petition was admitted based on the established default in payment exceeding the threshold limit. Consequently, a moratorium was declared under Section 14 of the Code, imposing restrictions on legal actions against the Corporate Debtor.

Issue 6: Directions Regarding Committee of Creditors and Progress Reports:
The Interim Resolution Professional was tasked with forming a Committee of Creditors, submitting progress reports, and convening meetings as per the Code's requirements. The Financial Creditor was instructed to deposit a specified amount for the Interim Resolution Professional's expenses.

Issue 7: Financial Deposit by the Financial Creditor for Expenses:
The Financial Creditor was directed to deposit a sum with the Interim Resolution Professional to cover expenses related to the resolution process, subject to adjustment by the Committee of Creditors upon conclusion of the process.

The Tribunal communicated the order to the parties involved, emphasizing compliance with the directives. The judgment addressed various legal aspects, ensuring due process and adherence to the provisions of the Insolvency and Bankruptcy Code.

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