Court Admits CIRP Petition: Service Valid, Debt Undisputed

The court found proper service of the demand notice, undisputed operational debt, and timely application filing. The judgment admitted the petition for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, appointing an Interim Resolution Professional, suspending Board powers, and imposing a moratorium. The Interim Resolution Professional was tasked with managing affairs, forming a Committee of Creditors, and providing progress reports. The petitioner was directed to deposit funds for immediate CIRP expenses.

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Issues:
1. Proper service of the demand notice in Form 3 dated 29.04.2019.
2. Dispute of operational debt by the corporate debtor.
3. Filing of the application within limitation.

Detailed Analysis:
1. The first issue for consideration is the service of the demand notice in Form 3 dated 29.04.2019. The petitioner provided a tracking report confirming the delivery of the speed post to the corporate debtor without any reply received, indicating proper service.
2. The next issue is whether the operational debt was disputed by the corporate debtor. Despite repeated service, the corporate debtor did not appear and was set ex parte. Additionally, the petitioner submitted an affidavit under section 9(3)(b) stating no reply to the demand notice and outstanding dues, supporting the undisputed nature of the debt.
3. Another issue involves the timeliness of the application filing. The application was filed on 05.07.2019, within the limitation period, considering the default date of 06.11.2018, meeting the requirements set by the Adjudicating Authority.

Further Details:
The judgment detailed the incorporation of the Corporate Debtor on 12.06.2014 under the Companies Act, 2013, establishing territorial jurisdiction. The petitioner supplied goods to the Corporate Debtor, leading to unpaid operational debt of Rs. 19,00,356/-, supported by invoices and bounced cheque evidence. The Adjudicating Authority found the debt and default proven, satisfying the conditions under Section 9 of the Insolvency and Bankruptcy Code, 2016.

The judgment admitted the petition for initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. It directed the appointment of an Interim Resolution Professional, suspended the powers of the Board of Directors, and imposed a moratorium on certain actions. The Interim Resolution Professional was tasked with managing the affairs of the Corporate Debtor, constituting a Committee of Creditors, and providing regular progress reports to the Tribunal.

Additionally, the petitioner was instructed to deposit a specific amount with the Interim Resolution Professional for immediate CIRP expenses. The judgment concluded by communicating the order to both parties and the Interim Resolution Professional, allowing and admitting the petition accordingly.

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