Tribunal Admits Operational Creditor's Application under Insolvency Code: Interim Resolution Professional Appointed

The Tribunal admitted the application filed by the Operational Creditor under section 9 of the Insolvency and Bankruptcy Code, declaring a moratorium under section 14. Mr. Madhusudhan Kumar Poddar was appointed as the Interim Resolution Professional of the Corporate Debtor, with the management vested in him during the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor was directed to deposit Rs.3,00,000/- with the IRP for expenses, and the Court Officer was tasked with communicating the order to the involved parties. The case is set for a periodical report filing on 21.10.2022, with the order pronounced on 07 September 2022.

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Issues:
1. Is this instant Application barred by limitationRs.
2. Is there any pre-existing dispute between the partiesRs.

Analysis & Findings:

1. Limitation:
Upon examining the records, the Tribunal noted that the Operational Creditor had annexed invoices dated 04 August 2018 and 04 April 2019. The Corporate Debtor argued that the Operational Creditor raised additional invoices on 10 January 2020 to avoid limitation. However, the application filed on 03 August 2021 falls within the limitation period, even considering the earlier dates of the invoices.

2. Pre-existing Dispute:
The Corporate Debtor contended that there were pre-existing disputes, supported by emails and WhatsApp chats indicating incomplete work and inflated invoices. However, the Tribunal found these emails to be unauthentic as they appeared typed rather than printed from a webpage. The Tribunal referred to the Supreme Court's ruling in Mobilox Innovations Pvt. Ltd. Vs. Kirusa Software (P) Limited, which states that at the admission stage, the Adjudicating Authority only needs to see if there is a plausible contention requiring further investigation and that the dispute is not a patently feeble legal argument.

The Tribunal observed that the Corporate Debtor failed to clear the dues on time, leading to delays in the completion of the purchase orders. The Tribunal concluded that the Operational Creditor's petition was complete and established that the Corporate Debtor defaulted on a debt exceeding the minimum amount stipulated under section 4(1) of the Code.

Order:
a) The application filed by the Operational Creditor under section 9 of the Code is admitted.
b) A moratorium under section 14 of the IBC is declared.
c) The moratorium shall last until the completion of the CIRP or until the Adjudicating Authority approves a resolution plan or orders liquidation.
d) Public announcement of the CIRP shall be made immediately.
e) Mr. Madhusudhan Kumar Poddar is appointed as the Interim Resolution Professional (IRP) of the Corporate Debtor.
f) During the CIRP period, the management of the Corporate Debtor shall vest in the IRP.
g) The IRP/RP shall submit periodical reports on the progress of the CIRP.
h) The Operational Creditor shall deposit Rs.3,00,000/- with the IRP for expenses.
i) The Court Officer is directed to communicate this Order to the parties involved by Speed Post and email.
j) The Operational Creditor shall serve a copy of this Order on the IRP and the Registrar of Companies, West Bengal, Kolkata.

The case is scheduled for a periodical report filing on 21.10.2022. A certified copy of the order may be issued upon compliance with requisite formalities. The order was pronounced on 07 September 2022.

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