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Judgment
The Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (the Code for short) to initiate Corporate Insolvency Resolution Process (CIRP) of Respondent for failure of the Respondent in repaying an operational debt of ₹.29,97,910.69 towards principal as on 22.04.2016 and ₹.15,47,018.24 towards interest aggregating to ₹.45,44,928.93.
Briefly stated the factual backdrop of the Petition are as follows:
The respondent issued two work orders dated 18.05.2015 amounting to ₹.47,38,985.69 and dated 20.08.2015 amounting to ₹.4,05,148 respectively to the petitioner for carrying out dry dock repair works. Upon completion of the work the petitioner raised invoices No.170001 and 170002 dated 22.04.2016 for the amounts. The respondent except for making a payment of ₹.21,00,000/- by 06.04.2017 did not clear the dues. The petitioner issued a demand notice under Section 8 of the IBC, 2016 in Form 3 on 12.11.2018. The notice served on the respondent on 16.11.2018. The petitioner came up with the present petition on 09.01.2019 without getting a reply from the respondent. He claimed interest at the rate of 18% amounting to ₹.15,47,018.24 indicating the total default to be ₹.45,44,928.93. It has suggested the name of Interim Resolution Professional (IRP) and the proposed IRP Shri Anand Chandra Swain has given his consent for appointment. No disciplinary proceedings is pending against him and his name is reflected in IBBI website.
The Respondent in its counter admitted that it had placed orders for execution of the work and the charges therefor levied by the respondent. It admitted the claim and part payment of ₹.21,00,000. The claim of 18% interest over the balance amount of ₹.29,97,910 is disputed on the ground that the term 'operational debt' does include any interest component. Besides, some objection is also taken to the quality and extent of work executed by the petitioner.
During the hearing the learned Counsel for the respondent sought some time to report if the respondent would like to settle as the original claim amount was not in dispute. However, he later reported that the respondent was not in a position to settle since it had other liabilities. The debt is admitted notwithstanding the dispute as to the interest claimed. Admittedly debt claimed in the petition is an unpaid operational debt. The petition filed under Section 9(2) of IBC is complete in all respects. Since the debt is admitted, this Authority has no hesitation in admitting the petition. Hence ordered.
ORDER
i. The Corporate Insolvency Resolution Process of the respondent shall commence from this date and shall be completed within 330 days hence.
ii. Shri Anand Chandra Swain (Registration No. IBBI/PA-002/IP-N00162/2017-2018/10431), having office at Expo Tower, 4th Floor, Plot No.1307, Nandankanan Road, P.O: KIIT, Bhubaneswar – 751 024, Khurda, Odisha; e-mail ID: [email protected] and [email protected]; Mobile No. 94370 20816; 93381 04142 is appointed as the Interim Resolution Professional (IRP).
iii. He is directed to take charge of the Respondent/Corporate Debtor's management forthwith and take necessary steps in furtherance of the CIRP in terms of Sections 13(2), 15, 17, 18 and 20 of IBC and Rules made thereunder.
Moratorium in respect of the respondent is hereby declared under Section 14 of the IBC.
The directors, Promoters or any other person associated with the management of Corporate Debtor shall extend all assistance and cooperation to the IRP as stipulated under section 19 and for effectively discharging his functions under the IBC.
The Registry is directed to communicate the order to the Petitioner/Operational Creditor and the Respondent/Corporate Debtor.
The petitioner/OC and the Registry are also directed to send the copy of this order to IRP for necessary compliance.