Tribunal Grants Insolvency Resolution Process for Non-Payment Default

The Tribunal confirmed jurisdiction to initiate Corporate Insolvency Resolution Process under section 9 of the Insolvency & Bankruptcy Code based on the non-payment default by the Corporate Debtor. The Operational Creditor's application, supported by evidence of default and debt due, was admitted. An Insolvency Professional was appointed to manage the resolution process, with a moratorium imposed under section 14 of the IBC to protect the Corporate Debtor's assets. The judgment provides a thorough overview of the legal proceedings and outcomes of the case.

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Issues:
1. Initiation of Corporate Insolvency Resolution Process under section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC).
2. Jurisdiction of the Tribunal.
3. Default in payment by the Corporate Debtor.
4. Admissibility of the application by the Operational Creditor.
5. Appointment of an Insolvency Professional.
6. Moratorium under section 14 of the IBC.
7. Management of the Corporate Debtor during the CIRP.

Analysis:
1. The Company Petition was filed under section 9 of the IBC by the Operational Creditor seeking to initiate Corporate Insolvency Resolution Process against the Corporate Debtor due to non-payment of a significant sum.
2. The Tribunal confirmed its jurisdiction to adjudicate the matter based on the incorporation details of the Corporate Debtor and the location of its registered office.
3. The Operational Creditor alleged that the Corporate Debtor failed to make payments as per the invoices raised, leading to a default of Rs.1,60,87,838/-, including interest at 18% p.a.
4. The Operational Creditor provided detailed evidence of the invoices raised, payments made, and reminders sent to the Corporate Debtor, establishing the default and the debt due.
5. The Tribunal noted the absence of a reply from the Corporate Debtor, acknowledged the liability through partial payments, and found the petition complete and within the limitation period, thus admitting the application.
6. An Insolvency Professional was appointed to conduct the Corporate Insolvency Resolution Process, with specific directions regarding the management of the Corporate Debtor and the submission of necessary documents.
7. The Tribunal imposed a moratorium under section 14 of the IBC, ensuring protection for the Corporate Debtor's assets and operations during the resolution process.

This detailed analysis of the judgment provides insights into the legal proceedings, findings, and orders issued by the Tribunal, ensuring a comprehensive understanding of the case and its implications.

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