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Judgment
Per: V. Nallasenapathy, Member (Technical)
ORDER
This Company Petition is filed by Next Step Engineering Private Limited (hereinafter called “Petitioner”) seeking to set in motion the Corporate Insolvency Resolution Process (CIRP) against Interspace Solutions Private Limited (hereinafter called “Corporate Debtor”) alleging that the Corporate Debtor committed default on 22.12.2017 in making payment to the extent of Rs. 22,84,814/- by invoking the provisions of Section 9 of Insolvency and Bankruptcy Code (hereinafter called “Code”) read with Rule 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
The Petitioner submits that the Corporate Debtor placed purchase orders on the Petitioner for the fabrication and supply of 10 units of Nerolac Counter System Fixtures (NCS) and accordingly the Petitioner have supplied and installed the NCS for use of the Corporate Debtor and raised invoices on the Corporate Debtor to the extent of Rs. 65,66,817/- including installation service charges of Rs. 1,48,680/-. For the above said supply the Petitioner received an advance payment of Rs. 2,00,000/- on 07.10.2017 and another part-payment of Rs. 9,98,460/- on 05.12.2017. Thereafter, the Corporate Debtor issued 3 cheques dated 24.11.2017, 27.11.2017 and 29.11.2017 in favor of the Petitioner for Rs. 9,98,460/-, Rs. 10,11,778/- and Rs. 10,11,778/- respectively, which were returned unpaid with an endorsement “payment stopped by drawer”.
Thereafter on 27.06.2018 the Petitioner issued a demand notice under Section 8 of the Code demanding Rs. 22,84,814/- from the Corporate Debtor. The Corporate Debtor failed to respond to the demand notice and the petitioner has filed an affidavit under section 9(3)(b) of the Code stating that no notice of the dispute has received by the Corporate Debtor.
The counsel for the Corporate Debtor, during the hearing of the petition, accepted the liability and default.
This Bench having been satisfied with the Petition filed by the Operational Creditor which is in compliance of provisions of section 9 of the Insolvency and Bankruptcy Code admits this Petition declaring moratorium with the directions as mentioned below:
That this Bench hereby prohibits 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; transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; 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; the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor.
That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period.
That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
That the order of moratorium shall have effect from 24.06.2019 till the completion of the corporate insolvency resolution process or until this Bench approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, as the case may be.
That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under section 13 of the Code.
That this Bench hereby appoints Mr. Hirachand Nemichand Bafna, office at 1502, Garner Towers, Sheth Motisha Lane, Mazgaon, Mumbai - 400010, email id – [email protected]; having Registration No. IBBI/IPA-001/IP-P01207/2018-2019/11922 as an interim resolution professional to carry the functions as mentioned under the Insolvency & Bankruptcy Code.
Accordingly, this Petition is admitted.
The Registry is hereby directed to communicate this order to both the parties and to IRP immediately.