AI Drafter 
TaxTMI 
TaxTMI 
2020 (9) TMI 261
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....nafter referred to as "the Code"] read with Rule 6 of The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 [hereinafter referred to as "the Rules"], as operational creditor/applicant. 2. The respondent/corporate debtor is a company registered under the Companies Act, incorporated on 04.06.2008 having identification No. U27109GJ2012PTC070100 and having registered office at S.G. Highway, Ahmedabad, Gujarat State. Authorised share capital of the respondent company is Rs. 50,00,000/- and paid up share capital is Rs. 27,00,000/-. 3. The applicant/operational creditor is private limited company having its registered office at Naroda, Ahmedabad, Gujarat State engaged in the business of supply of rolling mill mach....
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....f the application, proof of service, computation showing the details of outstanding, correspondence between the two parties requesting to release payments, e-mail communication, ledger account maintained by the operational creditor etc. 7. The respondent/corporate debtor filed affidavit in reply inter alia stating that the petition is contrary to the object of the I & B Code, the corporate debtor is not an insolvent company and is merely facing a temporary financial crunch. That, the corporate debtor had made offers of repaying the outstanding amount, however, the said offers were summarily rejected by the applicant without appreciating the said proposals. That, there is nothing on record to show that the goods in respect of the invoices....
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.... also found that the instant petition filed by the applicant is well within limitation and there is no denial of the operational debt and/or any pre-existing dispute regarding the operational debt from the corporate debtor. 11. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the application is complete in all respect and the Corporate Debtor committed default in paying the operational debt to the Applicant. 12. The documents produced by the operational creditor clearly establish the 'debt' and there is default on the part of the Corporate Debtor in payment of the 'operational debt'. 13. On perusal of the records it is also found that the corporate deb....
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....te has ever been raised by the respondent at any point of time. That, Applicant is an Operational Creditor within the meaning of Section 5 sub-section 20 of the Code. From the aforesaid material on record, petitioner is able to establish that there exists debt as well as occurrence of default and the amount claimed by operational creditor is payable in law by the corporate debtor as the same is not barred by any law of limitation and/or any other law for the time being in force. 17. Section 13 of the Code enjoins upon the Adjudicating Authority to exercise its discretion to pass an order to declare a moratorium for the purposes referred to in Section 14, to cause a public announcement of the initiation of corporate insolvency resolution ....
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....including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (iv) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 20. It is further directed that the supply of goods and essential services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. The provisions of sub-section (1) shall, however, not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. 21. The order of moratorium shall have effect from the date of receipt of authen....