Corporate Applicant's IBC Section 10 application approved, initiating CIRP

The Corporate Applicant's application under Section 10 of the IBC, 2016, citing a default of Rs. 271,62,98,645/-, was approved, leading to the initiation of the Corporate Insolvency Resolution Process. The Adjudicating Authority confirmed jurisdiction, and an Interim Resolution Professional was appointed to manage the process. The application was admitted, a moratorium declared, and the Interim Resolution Professional tasked with conducting the CIRP. Instructions were given for claims submission, property protection, and advance payment to the Interim Resolution Professional, ensuring a smooth process. The judgment was approved and implemented, with relevant parties notified accordingly.

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Issues:
1. Application for initiation of Corporate Insolvency Resolution Process under Section 10 of the Insolvency and Bankruptcy Code, 2016.
2. Jurisdiction of the Adjudicating Authority.
3. Default committed by the Corporate Applicant.
4. Approval process for initiation of CIRP.
5. Appointment of Insolvency Professional.
6. Admission of the application and order of moratorium.
7. Duties and responsibilities of the Interim Resolution Professional.
8. Public announcement and submission of claims.
9. Protection and preservation of the Corporate Applicant's property.
10. Payment to the Interim Resolution Professional and filing of reports.

Analysis:
1. The application was filed by the Corporate Applicant under Section 10 of the IBC, 2016, citing a default of Rs. 271,62,98,645/-, seeking initiation of the Corporate Insolvency Resolution Process.
2. The Adjudicating Authority confirmed jurisdiction due to the location of the Corporate Applicant's registered office in Ahmedabad, Gujarat.
3. The Corporate Applicant, a subsidiary of IL & FS, had not commenced operations due to clearance issues, leading to the default in debt repayment to Financial and Operational Creditors.
4. Approval for CIRP initiation was obtained from the Board of Directors, IEDCL, IL & FS, and Hon'ble Justice (Retd.) Mr. D.K. Jain, following the recommendation of the Resolution Consultant.
5. Insolvency Professional Ms. Prajakta Menezes was proposed and appointed as the Interim Resolution Professional, with no pending disciplinary proceedings against her.
6. The application was admitted, and a moratorium was declared under Section 14 of the IBC, 2016, prohibiting certain actions against the Corporate Applicant.
7. The Interim Resolution Professional was tasked with conducting the CIRP, making public announcements, and managing the operations of the Corporate Applicant.
8. Instructions were given for submission of claims, continuation of goods/services supply, and protection of the Corporate Applicant's property value.
9. The Corporate Applicant was directed to make an advance payment to the Interim Resolution Professional for the CIRP's smooth conduct.
10. The Registry was instructed to communicate the order to relevant parties and upload it on the website, concluding the judgment's approval and implementation.

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