Company Petition Admitted for Corporate Insolvency Resolution Process: Moratorium, Insolvency Professional, and Creditor Deposit

The Tribunal admitted the Company Petition, initiating Corporate Insolvency Resolution Process against the Corporate Debtor. The order included provisions for a moratorium, appointment of an Insolvency Professional, management of the Corporate Debtor during the CIRP period, deposit by the Operational Creditor for expenses, communication of the order to relevant parties, and updating of records with the Registrar of Companies.

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Issues:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) under section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) against the Corporate Debtor.
2. Default in payment by the Corporate Debtor leading to the petition for insolvency.
3. Admission of liability and default by the Corporate Debtor.
4. Application for placing the consent of the Insolvency Resolution Professional (IRP) on record.

Analysis:

Issue 1: Initiation of CIRP under IBC
The Company Petition was filed by the Operational Creditor seeking to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor for an amount in default. The Operational Creditor claimed a sum of Rs.1,44,07,834/-, which was said to be the outstanding amount owed by the Corporate Debtor. The petition was filed under section 9 of the IBC, and it was established that the debt amount exceeded Rupees One Crore, meeting the criteria for admission.

Issue 2: Default in Payment
The Operational Creditor supplied printed items to the Corporate Debtor, and despite using the services and products, the Corporate Debtor failed to clear the dues. The Operational Creditor issued a Demand Notice under section 8 of the IBC, demanding repayment of the outstanding amount. The Corporate Debtor neither replied to the notice nor repaid the dues, leading to the petition for insolvency.

Issue 3: Admission of Liability and Default
During the proceedings, the Counsel for the Corporate Debtor admitted the liability as well as the default. The Corporate Debtor confirmed the outstanding amount in their ledger account via email. The Corporate Debtor failed to file a reply despite multiple opportunities granted, resulting in the forfeiture of the right to reply. The Tribunal found that the petition fell within the period of limitation as prescribed under the Limitation Act, 1963, and the debt was established, leading to the admission of the petition.

Issue 4: Application for IRP Consent
An Interlocutory Application was filed by the Operational Creditor for placing the consent of the Insolvency Resolution Professional (IRP) on record. The application was heard and disposed of by the Bench, ensuring compliance with the necessary procedures for the Corporate Insolvency Resolution Process.

In conclusion, the Tribunal admitted the Company Petition, initiating the Corporate Insolvency Resolution Process against the Corporate Debtor. The order included provisions for a moratorium, appointment of an Insolvency Professional, management of the Corporate Debtor during the CIRP period, deposit by the Operational Creditor for expenses, communication of the order to relevant parties, and updating of records with the Registrar of Companies.

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