Tribunal allows CIRP for unpaid freight services, appoints IRP, imposes moratorium.

The Tribunal admitted the application for the initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to outstanding balance for freight forwarding services. An Insolvency Resolution Professional (IRP) was appointed, and the applicant was directed to deposit Rs. 2 lakhs. A moratorium was imposed on the Corporate Debtor as per Section 14 of the Code, prohibiting actions against them during the specified period.

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Issues:
- Application for initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of IBC 2016 due to alleged default by the Corporate Debtor.
- Failure of the Corporate Debtor to pay outstanding balance for freight forwarding services.
- Lack of appearance by the Respondent, resulting in ex-parte proceedings.
- Appointment of Insolvency Resolution Professional (IRP) and deposit requirement by the applicant.
- Imposition of moratorium as per Section 14 of the Code.

Analysis:
1. The applicant, an operational creditor, filed an application seeking to initiate the CIRP against the Corporate Debtor due to an outstanding balance of Rs. 93,71,138 for freight forwarding services provided. The debt accrued from unpaid invoices, leading to severe financial problems for the Operational Creditor. The Corporate Debtor failed to pay despite repeated requests, indicating insolvency and inability to meet financial commitments.

2. Despite opportunities provided, the Corporate Debtor did not appear, resulting in ex-parte proceedings. The applicant's claim was based on the default in payments post-2016, with no objections raised by the Corporate Debtor regarding the quality of services provided. The absence of any dispute or objection strengthened the applicant's claim for the outstanding debt.

3. The Tribunal found the applicant's claim valid and admitted the application. An Insolvency Resolution Professional (IRP) was appointed, and the applicant was directed to deposit Rs. 2 lakhs with the IRP to cover expenses. The appointment of the IRP was subject to certain conditions, including no pending disciplinary proceedings against them.

4. Following the admission of the application, a moratorium was imposed on the Corporate Debtor as per Section 14 of the Code. The moratorium prohibited actions against the Corporate Debtor during the specified period, with relevant provisions of the Code coming into force. The order was communicated to the applicant, Corporate Debtor, IRP, and regulatory authorities for compliance and record-keeping purposes.

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