Vinnarasi Industries vs UT Limited

Per Virendra Kumar Gupta (T)

This application is filed under Section 9 of Insolvency and Bankruptcy Code, 2016 ("IBC, 2016") for the purpose of initiating Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor - UT Limited as it has committed default in payment of outstanding debt.

The facts, in brief, are that the Operational Creditor supplied goods to the Corporate Debtor from March 2011 to January 2012 and raised invoices which remained outstanding. The Ld. Counsel appearing on behalf of the operational creditor narrated these facts and drew our attention to the copies of the Purchase Orders received and the Invoices raised on the Corporate Debtor.

With regard to maintainability of this application on account of the aspect of limitation, the Ld. Counsel drew our attention to Arbitration Award dated 22.12.2012 which had been awarded in favour of the Operational Creditor. He drew our attention to page 5 of the said award to show that the principal sum of Rs.7,97,576/- had been determined as outstanding. On this basis, he pleaded that application filed by the Operational Creditor was maintainable. The Ld. Counsel further drew our attention to Form No.3, i.e., notice of demand, which was delivered and copy of proof of delivery was attached along with the petition. Affidavit under section 9(3) of IBC, 2016 has already been filed.

None appeared on behalf of the Corporate Debtor. Hence, we proceed to decide this matter on the basis of the contentions made on behalf of the Operational Creditor and material on record. It is undisputed fact that an arbitration award has been given in favour of the Operational Creditor. The amount so determined is more than Rs. One Lac. Notice of demand under section 8 of IBC, 2016 has been delivered. The application is otherwise complete and defect-free. The proposal of name of the IRP is not mandatory for applications filed under section 9 of IBC, 2016. We will appoint the IRP from the panel of IRPs approved by IBBI. In this view of the matter, we admit this application and order as under:

The application filed by the Operational Creditor under section 9 of the Insolvency & Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the corporate debtor, UT Limited, is hereby admitted.

ii) We declare a moratorium and cause public announcement in accordance with Sections 13 and 15 of the IBC, 2016.

iii) Moratorium is declared for the purposes referred to in Section 14 of the Insolvency & Bankruptcy Code, 2016. The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for the submission of claims under Section 15. The public announcement referred to in clause (b) of sub-section (1) of Section 15 of Insolvency & Bankruptcy Code, 2016 shall be made immediately.

iv) Moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016 prohibits the following:

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 (54 of 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 supply of essential goods or services to the corporate debtor as may be specified shall not be terminated, suspended, or interrupted during moratorium period.

vi) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

vii) The order of moratorium shall have effect from the date of admission till the completion of the corporate insolvency resolution process.

viii) Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of corporate debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be.

ix) Necessary public announcement as per Section 15 of the IBC, 2016 may be made.

Mr. Pranab Kumar Chakrabarty, IRP Registration No. IBBI/IPA-003/IP-N00088/2017-18/10826, E-mail: pranabchakrabartypkc@yahoo.com, is appointed as Interim Resolution Professional for ascertaining the particulars of creditors and convening a Committee of Creditors for evolving a resolution plan, subject to production of written consent within one week from the date of receipt of this order.

xi) The Financial Creditor to pay sum of Rs.50,000/- (Rupees Fifty Thousand only) to IRP as advance fees as per Regulation 33(3) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulation 2016 which shall be adjusted from final bill.

xii) The Resolution Professional shall conduct CIRP in time bound manner as per Regulation 40A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulation, 2016.

xiii) List the matter on 15th April, 2020 for the filing of the progress report.

xiv) CP(IB) No. 1312/KB/2019 stands disposed of.

xv) Registry is hereby directed under section 7(7) of the I & B Code, 2016 to communicate the order to the Financial Creditor, the Corporate Debtor and to the IRP by Speed Post as well as through e-mail.

xvi) Certified copy of the order may be issued to all the concerned parties, if applied for, upon compliance with all requisite formalities.