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Judgment
PER SHRI L. N. GUPTA, MEMBER (T)
M/s Bright Cove Goods (the Applicant/Operational Creditor) has filed this Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (‘IBC, 2016’) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 through its partner Shri Vikram Gupta with a prayer to initiate the Corporate Insolvency Resolution Process against M/s Adjoin Dreamprojects & Agro Private Limited (‘Corporate Debtor / Respondent’).
The Corporate Debtor namely, M/s Adjoin Dreamprojects & Agro Private Limited with CIN U70101DL2013PTC258100 is a company incorporated on 19.09.2013 under the provisions of the Companies Act, 2013 having registered office at C-14, Basement, Greater Kailash Enclave- I, New Delhi DL-110048, which is within the jurisdiction of this Tribunal.
It is stated by the Applicant/Operational Creditor that the Corporate Debtor had approached them for supply of Brochures and material on credit basis with a promise to make payment upon supply of the said material. It is claimed by the Applicant that goods were supplied to the Corporate Debtor to the satisfaction of the Corporate Debtor. The Applicant has raised an invoice of Rs.3,15,315/- (Rupees Three Lakhs Fifteen Thousand Three Hundred and Fifteen only) on 28.02.2019 on the corporate debtor. However, despite repeated request and reminders, the Corporate Debtor failed to make payment of the said invoice. The Applicant has stated that the supplied material has already been utilized by the corporate debtor.
The Applicant further states that under the circumstances, it was constrained to issue a demand notice dated 29.01.2020 under Section 8 of the IBC, 2016 to the Corporate Debtor. The notice was duly served upon the Corporate Debtor.
As per Part-IV of the Application, an amount of 3,15,315/-(Rupees Three Lakhs Fifteen Thousand Three Hundred and Fifteen only) is due and payable by Corporate Debtor. The scanned copy of the Part IV of the Application is reproduced below :
That the Applicant has filed an affidavit dated 13.02.2020 in compliance of Section 9 (3)(b) of the IBC, 2016 and stated the Corporate Debtor has given no Notice of Dispute u/s 8(2) of IBC, 2016 in relation to the unpaid operational debt.
The Corporate Debtor has filed its reply to the aforesaid application and averred the following :
As per the averments of the Applicant in Part IV of its Application, a sum of Rs.3,15,315/- is due and payable. The Corporate Debtor in its own reply has stated in Para 6 that an amount of Rs.3,15,315/- is due and payable to the Operational Creditor for payment against the supply of brochures. Further, it has stated that due to lack of liquid funds/assets and its adverse financial condition, the Corporate Debtor is not in a position to make the payment.
In the circumstances, the amount of unpaid operational debt being of more than 1 Lakh and the Corporate Debtor having admitted its default in making the payment of the said debt, we are inclined to initiate the CIR Process against the Corporate Debtor.
In the given facts and circumstances, the Operational Creditor has established the default on the part of Corporate Debtor in payment of the operational debt. The Petition filed under Section 9 fulfills all the requirements of law. Therefore, the petition is admitted in terms of Section 9(5) of the IBC. Accordingly, the CIRP is initiated and moratorium is declared in terms of Section 14 of the Code. As a necessary consequence of the moratorium in terms of Section 14(1) (a), (b), (c) & (d), the following prohibitions are imposed, which must be followed by all and sundry:
“(a)The institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;
(b)Transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein;
(c)Any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;
(d)The recovery of any property by an owner or lessor, where such property is occupied by or in the possession of the corporate debtor.”
The Applicant has proposed the name of Mr. Jaswant Singh, having office at 17/15 2nd Floor, Ashok Nagar, New Delhi 110018 (email id [email protected]) and Registration No. IBBI/IPA-002/IP-N00372/2017-2018/11135 to be appointed as IRP. The IRP abovenamed has filed his consent in Form 2 of Insolvency and Bankruptcy Board of India (Application to Adjudicating Authority) Rule, 2016 and disclosures as required under IBBI (insolvency Resolution Process for Corporate Persons) Regulations, 2016.
Accordingly, this Bench appoints Mr. Jaswant Singh as IRP subject to the condition that no disciplinary proceedings are pending against the IRP as on date. The IRP shall file affidavit to this effect before this Tribunal. He is directed to take charge of the CIRP of the Corporate Debtor with immediate effect and take the steps as mandated under the IBC specifically under Section 15, 17, 18, 20 and 21 of IBC, 2016.”
The Operational Creditor is directed to deposit Rs.1,00,000/-(One Lakh) only with the IRP to meet the immediate expenses. The amount, however, will be subject to adjustment by the Committee of Creditors as accounted for by the Interim Resolution Professional and shall be paid back to the Operational Creditor.
A copy of this Order shall be communicated immediately to the Operational Creditor, the Corporate Debtor and the IRP named above, by the Registry/Court Officer. The Court Officer will inform the IRP so appointed by all modes.
In addition, a copy of the Order shall also be forwarded by the Registry to IBBI for their record.