Admission of Petition for Insolvency against Corporate Debtor

The Tribunal admitted the petition filed by M/s. Madhav Alloys Private Limited, an operational creditor, to initiate Corporate Insolvency Resolution Process against Aryan Villa and Resorts LLP, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition detailed the outstanding operational debt, validity of the demand notice, timeliness of the application, completion of required forms and documents, appointment of an Interim Resolution Professional, imposition of a moratorium, and related directions. The Tribunal found the application timely filed, appointed an Interim Resolution Professional, imposed a moratorium, and issued specific directions for managing the affairs of the corporate debtor.

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Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016.
2. Validity of demand notice served on the corporate debtor.
3. Disputed operational debt by the corporate debtor.
4. Timeliness of the application filed.
5. Completion and submission of required forms and documents.
6. Appointment of Interim Resolution Professional.
7. Imposition of moratorium and related directions.

Detailed Analysis:

1. Initiation of Corporate Insolvency Resolution Process:
The petition was filed by M/s. Madhav Alloys Private Limited, the operational creditor, seeking to initiate Corporate Insolvency Resolution Process against Aryan Villa and Resorts LLP, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition detailed the outstanding operational debt, issuance of demand notice, and non-payment by the corporate debtor.

2. Validity of Demand Notice:
The petition included evidence of a demand notice served on the corporate debtor in Form 3 & 4 dated 10.01.2019, supported by postal receipts and an affidavit confirming no reply from the corporate debtor. The written submissions affirmed the proper service of the demand notice before filing the petition.

3. Disputed Operational Debt:
Despite repeated service and setting the corporate debtor ex parte, the operational debt was undisputed as per the petitioner's affidavit under Section 9(3)(b). The lack of response to the demand notice and non-clearance of dues further supported the claim of default by the corporate debtor.

4. Timeliness of Application:
The application was filed on 28.02.2019, within the limitation period from the date of default on 18.07.2018. The Adjudicating Authority found the application timely filed, meeting the requirements under the Code.

5. Completion of Forms and Documents:
The petition, including Form 5 and supporting annexures, demonstrated the completeness of the application. The operational creditor substantiated the unpaid operational debt, invoices, and interest calculations, fulfilling the threshold for initiating CIRP.

6. Appointment of Interim Resolution Professional:
In the absence of a proposed Interim Resolution Professional in Form 5, Mr. Vipul Garg was appointed as the Interim Resolution Professional from the IBBI list. The directions included filing consent, managing affairs, preparing asset inventory, and constituting a Committee of Creditors.

7. Imposition of Moratorium and Related Directions:
Upon admitting the petition and initiating CIRP, the Tribunal imposed a moratorium under Section 14 of the Code, restricting certain actions against the corporate debtor. Essential supplies were protected, and specific directions were given to the Interim Resolution Professional for managing the affairs of the corporate debtor.
This detailed analysis covers the key issues addressed in the judgment, outlining the legal proceedings and decisions made by the Tribunal in the context of initiating Corporate Insolvency Resolution Process and related matters.

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