Tribunal admits petition for Corporate Insolvency Resolution Process with appointed Interim Resolution Professional & imposed moratorium.

The tribunal admitted the petition for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. Mr. Ashish Singh was appointed as the Interim Resolution Professional (IRP) with specific directions outlined. A moratorium was imposed under Section 14 of the Code, including the suspension of suits, prohibition on asset transfer, and protection of essential goods or services supply. The petitioner was directed to deposit Rs.40,000 with the IRP for immediate CIRP expenses.

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Issues Involved:
1. Proper service of the demand notice.
2. Dispute of operational debt by the corporate debtor.
3. Filing of the application within the limitation period.
4. Completeness of the application.
5. Satisfaction of conditions under Section 9 of the Insolvency and Bankruptcy Code.
6. Appointment and directions for the Interim Resolution Professional (IRP).
7. Imposition of moratorium.

Issue-wise Detailed Analysis:

1. Proper Service of the Demand Notice:
The tribunal examined whether the demand notice dated 27.08.2018 was properly served. It was established that the demand notice sent to the registered address of the corporate debtor was delivered, as evidenced by the tracking report annexed with the petition.

2. Dispute of Operational Debt by the Corporate Debtor:
The tribunal considered whether the operational debt was disputed by the corporate debtor. The operational creditor filed an affidavit under Section 9(3)(b) of the Code, stating that no reply was received to the demand notice, and there was no notice from the corporate debtor disputing the unpaid operational debt.

3. Filing of the Application within Limitation:
The tribunal reviewed whether the application was filed within the limitation period. The petition was filed on 10.12.2018, and the date of default was 11.04.2017, which was within the permissible period, thus confirming the application was filed within limitation.

4. Completeness of the Application:
The tribunal verified the completeness of the application filed in Form 5. The petition was found to be complete with all necessary details, including the unpaid operational debt of Rs.3,10,000/-, supported by the bank account details and invoice.

5. Satisfaction of Conditions under Section 9 of the Code:
The tribunal assessed whether the conditions under Section 9 of the Code were satisfied. It was noted that the corporate debtor failed to make the payment despite the demand notice, and the liability was undisputed and established. The tribunal concluded that the petitioner proved the debt and default, which was above the threshold limit.

6. Appointment and Directions for the Interim Resolution Professional (IRP):
The tribunal appointed Mr. Ashish Singh as the Interim Resolution Professional (IRP) and provided specific directions:
- The term of appointment in accordance with Section 16(5) of the Code.
- Suspension of the Board of Directors' powers and vesting of management with the IRP.
- The IRP to act in accordance with the Code and professional ethics.
- Public announcement of the CIRP initiation within three days.
- Cooperation from the corporate debtor's management.
- Retrieval of information from the corporate debtor's data systems.
- Constitution of the Committee of Creditors within thirty days and convening the first meeting within seven days.
- Regular progress reports to be sent to the tribunal every fortnight.

7. Imposition of Moratorium:
The tribunal directed a moratorium under Section 14 of the Code, which includes:
- Suspension of suits or proceedings against the corporate debtor.
- Prohibition on transferring or disposing of the corporate debtor's assets.
- Prevention of foreclosure or enforcement of security interests.
- Protection of essential goods or services supply to the corporate debtor during the moratorium period.
- The moratorium to remain effective until the completion of the CIRP or approval of a resolution plan or liquidation order.

Conclusion:
The tribunal admitted the petition for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor and directed the petitioner to deposit Rs.40,000 with the IRP for immediate CIRP expenses. The order was communicated to both parties and the IRP.

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