Tribunal admits CIRP petition for undisputed operational debt, imposes moratorium, appoints IRP

The Tribunal found that the demand notice was properly served to the corporate debtor, no pre-existing dispute existed regarding the operational debt, and the application was filed within the limitation period. The unpaid operational debt was deemed undisputed, leading to the admission of the petition for the initiation of Corporate Insolvency Resolution Process (CIRP) for the corporate debtor. A moratorium was imposed, an Interim Resolution Professional appointed, and the petitioner instructed to deposit a specified amount for immediate CIRP expenses.

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Issues:
1. Proper service of demand notice
2. Disputed operational debt by corporate debtor
3. Filing of application within limitation

Analysis:

Issue 1: Proper service of demand notice
The petitioner provided evidence of serving the demand notice through registered postal receipts and copies of the notice to the corporate debtor. The Tribunal found that the demand notice was duly served, as evidenced by Annexure-K attached to the petition.

Issue 2: Disputed operational debt by corporate debtor
Despite repeated service, the corporate debtor did not appear and was set ex parte. The compliance affidavit stated that there was no reply disputing the operational debt. The petitioner also provided evidence that the corporate debtor received notices but did not respond. The Tribunal concluded that there was no pre-existing dispute between the parties.

Issue 3: Filing of application within limitation
The application was filed on 24.09.2019, within the limitation period, as the default occurred on 14.04.2018. The Adjudicating Authority determined that the application was filed within the prescribed time limit.

The Tribunal reviewed the complete petition, acknowledging the unpaid operational debt of Rs.39,35,057, including interest. The petitioner supplied goods to the corporate debtor and issued invoices, proving the debt and default. The liability of the corporate debtor was deemed undisputed, meeting the conditions under Section 9 of the Insolvency and Bankruptcy Code.

The Tribunal admitted the petition for the initiation of Corporate Insolvency Resolution Process (CIRP) for the corporate debtor. A moratorium was directed to take effect, and an Interim Resolution Professional was appointed. The order of moratorium was to remain in effect until the completion of the insolvency resolution process or liquidation of the corporate debtor.

The appointed Interim Resolution Professional was directed to manage the affairs of the corporate debtor, prepare an inventory of assets, and comply with all relevant provisions of the Code. The petitioner was instructed to deposit a specified amount with the Interim Resolution Professional for immediate CIRP expenses.

The Tribunal allowed and admitted the petition, directing communication of the order to both parties and the appointed Interim Resolution Professional promptly.

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