2020 (1) TMI 841

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.... Code"] read with Rule 6 of The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 [hereinafter referred to as "the Rules"] 2. The applicant/operational creditor is a partnership firm having PAN/identification No. AAIFG7862Q and having office at Plot No. 1, Survey No. 101-108, Opp. Gokuldham, Sarkhej, Ahmedabad 380 055 is a timber merchant 3. The respondent/corporate debtor is a company registered under the Companies Act, incorporated on 03.12.2011 having identification No. U7010GJ2011PTC068075 having registered office at Sarkhej, Ahmedabad 380 055, Gujarat State. Authorised share capital of the respondent company is Rs. 5,00,000/- and paid up share capital is Rs. 1,00,000/- 4. The applicant/Petitioner has subm....

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....ication, notice for the first time was issued but none appeared on behalf of the respondent. Despite giving number of opportunities, no reply has been filed by the respondent. On perusal of the record it is also found that when the matter was listed on 3rd October, 2019, seven days' time was further granted to the respondent to file reply. On 22.10.2019, when the matter was listed for final hearing, learned lawyer appearing on behalf of the respondent was reluctant to argue the matter, however, liberty was granted to file written submission within a week. 9. On perusal of the records it is found that the respondent has not filed any reply nor raised any dispute regarding the operational debt payable to the operational creditor even aft....

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....o section 3(11), which in turn tells us that a debt means a liability of obligation in respect of a "claim" and for the meaning of "claim", we have to go back to Section 3(6) which defines "claim" to mean a right to payment even if it is disputed. The Code gets triggered the moment default is of rupees one lakh or more (Section 4). The Corporate Insolvency Resolution Process may be triggered by the corporate debtor itself or a financial creditor or operational creditor.' 12. Thus, under the facts and circumstances and as discussed above, in the light of the Hon'ble Supreme Court Judgment and the provisions thereof as enshrined in Insolvency & Bankruptcy Code, this adjudicating authority is of the considered view that operational de....

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....diately after the appointment of Interim Insolvency Resolution Professional. This Adjudicating Authority direct the Insolvency Resolution Professional to make public announcement of initiation of Corporate Insolvency Process and call for submission of claims under Section 15 as required by Section 13(l)(b) of the Code. 16. From the above stated discussion and on the basis of material available on record it is a fit case to initiate Insolvency Resolution Process by admitting the Application under Section 9(5)(1) of the Code. 17. The petition is, therefore, admitted and the moratorium is declared for prohibiting all of the following in terms of sub-section (1) of Section 14 of the Code: - (i) the institution of suits or continuation of pe....