Tribunal Grants Petition for Moratorium & Appoints Interim Resolution Professional

The petition was allowed, and the Tribunal directed a moratorium under Section 14 of the Insolvency and Bankruptcy Code, including the suspension of suits, prohibition on asset transfer, and continuation of essential supplies. Ms. Pooja Damir Miglani was appointed as the Interim Resolution Professional with specified directions, such as filing consent and managing the debtor's affairs. The petitioner was required to deposit funds for immediate expenses. The order was communicated to parties and the IRP, with the Registry sending a copy via email.

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Issues Involved:
1. Proper service of demand notice.
2. Dispute of operational debt by the corporate debtor.
3. Filing of application within the limitation period.
4. Completeness of the application.
5. Satisfaction of conditions under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).
6. Directions regarding moratorium.
7. Appointment and directions to the Interim Resolution Professional (IRP).

Detailed Analysis:

1. Proper Service of Demand Notice:
The first issue considered was whether the demand notice dated 13.01.2020 was properly served. The Tribunal found that the demand notice was sent to the registered address of the corporate debtor and was delivered, as evidenced by the tracking report annexed with the petition.

2. Dispute of Operational Debt by the Corporate Debtor:
The next issue was whether the operational debt was disputed by the corporate debtor. The operational creditor filed an affidavit stating that no payment or proof of payment was received from the corporate debtor after the service of the demand notice. Furthermore, there was no reply or objection from the corporate debtor, leading to the inference that the demand and documents were correct and admitted by the corporate debtor. There was no pre-existing dispute regarding the debt.

3. Filing of Application within Limitation Period:
The Tribunal examined whether the application was filed within the limitation period. The application was filed on 03.02.2020, and the date of default was 20.09.2019. The Tribunal found that the application was filed within the limitation period.

4. Completeness of the Application:
The Tribunal reviewed the contents of the application filed in Form 5 and found it to be complete. The operational creditor provided details of the debt due and annexed the ledger account statement and invoices. The total unpaid operational debt was Rs. 5,59,673/- plus interest @ 24% p.a., amounting to Rs. 34,592/-.

5. Satisfaction of Conditions under Section 9 of the IBC:
The Tribunal noted that the corporate debtor failed to make payment of the outstanding amount mentioned in the statutory notice. The conditions under Section 9 of the IBC were satisfied, as the liability of the corporate debtor was undisputed and established. The corporate debtor did not appear to rebut the claim, and the petitioner proved the debt and default, which was above the threshold limit.

6. Directions Regarding Moratorium:
The Tribunal directed a moratorium in terms of Section 14 of the IBC, which included:
- Suspension of suits or proceedings against the corporate debtor.
- Prohibition on transferring or disposing of the corporate debtor's assets.
- Prevention of actions to foreclose or enforce security interests.
- Continuation of supply of essential goods or services to the corporate debtor.

The moratorium would be effective from the date of the order until the completion of the CIRP or approval of a resolution plan or liquidation order.

7. Appointment and Directions to the Interim Resolution Professional (IRP):
The Tribunal appointed Ms. Pooja Damir Miglani as the Interim Resolution Professional (IRP) and issued several directions:
- The IRP's term of appointment would be in accordance with Section 16(5) of the IBC.
- The IRP was directed to file written consent in Form-2 within one week.
- The IRP would take over the management of the corporate debtor and exercise all powers vested in the IRP.
- The IRP was instructed to make a public announcement, prepare an inventory of assets, and constitute a Committee of Creditors (CoC).
- The IRP was required to send regular progress reports to the Tribunal every fortnight.

The petitioner was directed to deposit Rs. 60,000/- with the IRP to meet immediate CIRP expenses, which would be reimbursed by the CoC.

Conclusion:
The petition was allowed and admitted, and the Tribunal directed communication of the order to both parties and the IRP. The Registry was instructed to send a copy of the order to the IRP via email.

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