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Judgment
ORDER
[Per: VIRENDRA KUMAR GUPTA, MEMBER(T) ]
This Application is filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by the Operational Creditor Quippo Infrastructure Limited to initiate Corporate Insolvency Resolution Process against Corporate Debtor CMM Infraprojects Ltd. The outstanding principal sum has been stated of Rs. 32,41,719/- (Rupees Thirty two lacs forty one thousand seven hundred nineteen only).
The brief facts of the case are as under :
1) The Operational Creditor has supplied equipments on rental basis as per the different work orders placed by the Corporate Debtor. The period of such rental is F.Y, 2016-17 & 2017-18. As per the terms and conditions of the work order, the Corporate Debtor was also liable to pay interest on the outstanding amount for the period of delay. The Corporate Debtor did not pay the amount which lead to issue of notice under Section 8 of the Insolvency & Bankruptcy Code, 2016 on 16.05.2018 a.w. all necessary documents of the same was duly served. Thereafter, this application has been filed.
The Learned Counsel Mr. Mihir Parikh appeared for the Operational Creditor and submitted these facts and drew our attention to all revenant documents in support of its claim. It was also claimed that the Corporate Debtor did not reply to demand notice nor to this application. It was also pointed out that no one appeared on behalf of the Corporate Debtor on last four occasions. Hence, the matter being old needed to be disposed of. It was also pleaded that on the last date of hearing the matter had been made Ex-parte. Our attention was also drawn to affidavit filed under Section 9(3) (b) and 9(3) (c) of the Insolvency & Bankruptcy Code, 2016. It was also pointed out that this Authority could appoint any IRP as no name was proposed.
We have considered submissions on behalf of Operational Creditor and material available on record. It is noted that the outstanding amount pertains to provision of equipments on hired. Thus, the nature of Operational debt. Such debt is due and payable, both in law and fact.
The application filed by the Operational Creditor complies with all relevant provisions of the Insolvency & Bankruptcy Code, 2016 r.w. regulation/rules made thereunder.
The name of the IRP has not been proposed as the same is not mandatory in case of application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, hence, we shall appoint IRP, whose name appears in the approved list of the IBBI and against whom disciplinary proceedings are not pending. Accordingly, we admit this application and order as under :
ORDER
The application is admitted and the moratorium is declared for prohibiting all of the following in terms of Section 14(1) of the Code.
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 Securitisation 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.
The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the Resolution Plan under sub-section (1) of the Section 31 or passes an order for liquidation of Corporate Debtor Company under Section 33 of the Insolvency & Bankruptcy Code, 2016, as the case may be.
The Operational Creditor has proposed the name of the Interim Resolution Professional(IRP). Therefore, this Adjudicating Authority hereby appoint Mr. Vichitra Narayan Pathak IBBI/IPA-001/IP-P01353/2018-2019/12063 to act as an IRP under Section 13(1) (c) of the Code.
The IRP shall perform all his functions as contemplated, inter-alia, by Sections 17,18,20 & 21 of the Code. It is further made clear that all personnel connected with Corporate Debtor, its Promoter or any other person associated with management of the Corporate Debtor are under legal obligation under Section 19 of the Code extend every assistance and co-operation to the Interim Resolution Professional. Where any personnel of the Corporate Debtor, its Promoter or any other person required to assist or co-operate with IRP, do not assist or Co-operate, IRP is at liberty to make appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order.
This Adjudicating Authority direct the IRP to make public announcement of initiation of Corporate Insolvency Resolution Process (CIRP) and call for submission of claims under Section 15 as required by Section 13(1) (b) of the Code.
It is further directed that the supply of goods/service to the Corporate Debtor Company, it continuing, shall not be terminated or suspended or interrupted during moratorium period.
The IRP shall be under duty to protect and preserve the value of the property of the 'Corporate Debtor Company' and manage the operations of the Corporate Debtor Company as a going concern as a part of obligation imposed by Section 20 of the Insolvency & Bankruptcy Code, 2016. The Operational Creditor is directed to pay an advance of Rs. 1,00,000/- (Rupees One lacs Only) to the IRP within two weeks from the date of receipt of this order for the purpose of smooth conduct of Corporate Insolvency Resolution Process (CIRP) and IRP to file proof of receipt of such amount to this Adjudicating Authority alongwith First Progress Report.
The Registry is directed to communicate a copy of this order to the Operational Creditor, Corporate Debtor and to the Interim Resolution Professional and the concerned Registrar of Companies, after completion of necessary formalities, within seven working days and upload the same on website immediately after pronouncement of the order.
Accordingly, CP(IB) No. 66/9/NCLT/AHM/2019 is allowed.
The matter to be listed on 07.01.2021 for further consideration.