Tribunal initiates CIRP against Corporate Debtor, appoints IRP, and declares moratorium.

The Tribunal found no pre-existing dispute and initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. An Interim Resolution Professional (IRP) was appointed, and a moratorium was declared, prohibiting certain actions against the Corporate Debtor's assets. The IRP was directed to comply with specific provisions of the Insolvency & Bankruptcy Code, 2016, and the Operational Creditor was instructed to provide initial finance for the CIRP process.

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Issues Involved:
1. Application under Section 9 of the Insolvency & Bankruptcy Code, 2016.
2. Existence of operational debt and default.
3. Alleged pre-existing dispute between the parties.
4. Appointment of Interim Resolution Professional (IRP).
5. Declaration of moratorium.

Issue-wise Detailed Analysis:

1. Application under Section 9 of the Insolvency & Bankruptcy Code, 2016:
The application was filed by the Operational Creditor, M/s. Swastik Pipe Limited, under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC, 2016) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Strolar Mounting Systems Private Limited. The Operational Creditor requested the declaration of a moratorium and the appointment of an Interim Resolution Professional (IRP).

2. Existence of operational debt and default:
The Operational Creditor supplied Module Mounting Structure to the Corporate Debtor and raised invoices amounting to Rs. 51,96,280/-. Payments were made by the Corporate Debtor up to 12.06.2018, but subsequent defaults occurred. Despite a statutory demand notice dated 06.06.2019, the operational debt remained unpaid, leading to the claim of Rs. 34,27,620.60/- as the operational debt in default.

3. Alleged pre-existing dispute between the parties:
The Corporate Debtor contended that the petition was not maintainable due to a pre-existing dispute regarding the deficiency of services provided by the Operational Creditor. The Corporate Debtor cited several emails and an invoice dated 09.05.2019 for losses due to defective goods to substantiate the claim of a pre-existing dispute. However, the Operational Creditor refuted these claims, arguing that the emails indicated mere negotiations and that the invoice was not based on any agreement. The Tribunal examined the nature of the alleged disputes and concluded that the payments made by the Corporate Debtor after the emails indicated resolution of any disputes. The Tribunal also noted that the invoice dated 09.05.2019 was of a recovery nature, seeking liquidated damages, which the Tribunal is not empowered to adjudicate.

4. Appointment of Interim Resolution Professional (IRP):
The Operational Creditor did not propose any IRP. Therefore, the Tribunal appointed Mr. Rahul Khanna as the IRP from the list provided by the Insolvency and Bankruptcy Board of India (IBBI). The IRP was directed to submit his consent and valid Authorization of Assignment (AoA) and to take charge of the Corporate Debtor's management immediately.

5. Declaration of moratorium:
The Tribunal declared a moratorium effective from the date of the order until the completion of the CIRP. The moratorium prohibited:
- The institution or continuation of suits or proceedings against the Corporate Debtor.
- Transferring, encumbering, alienating, or disposing of the Corporate Debtor's assets.
- Actions to foreclose, recover, or enforce any security interest.
- Recovery of property by an owner or lessor.
- Suspension or termination of licenses, permits, or similar grants due to insolvency.

The Tribunal also directed the IRP to comply with Sections 13(2), 15, 17, and 18 of the IBC, 2016, and the Corporate Debtor's directors and associated persons to extend cooperation to the IRP. The Operational Creditor was instructed to provide initial finance for the CIRP process and to communicate the order to the IRP and the Corporate Debtor. The Registry was directed to update the status of the Corporate Debtor on the MCA-21 site of the Ministry of Corporate Affairs.

Conclusion:
The Tribunal found no pre-existing dispute and initiated the CIRP against the Corporate Debtor, appointing an IRP and declaring a moratorium as per the provisions of the IBC, 2016.

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