In the matter of M. S. Mining and Consultancy Private Limited
- CitationC.P. (IB) 2279/MB/IB/2019
Ratio decidendi
The rule this decision rests on
The admission of an operational creditor's application under section 9 of the Insolvency and Bankruptcy Code, 2016 is justified where the application is complete in compliance with sections 8 and 9, the operational creditor has filed the affidavit required by section 9(3)(b) attesting that no notice of dispute has been received, and the corporate debtor, through counsel, admits both the debt and the default, leaving no opposition to admission. On admission, the Tribunal is required to declare a moratorium under section 14 and to communicate the order, with the moratorium operating from the date of the order until completion of the corporate insolvency resolution process or until a resolution plan is approved under section 31 or liquidation is ordered under section 33, and the consequential directions set out in the order (prohibition on institution or continuation of suits and proceedings, on alienation of assets, on enforcement of security interests, and on recovery by owners or lessors, and non-termination of essential supplies) follow from that declaration.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Order delivered on: 17.03.2020 Coram: Hon’ble Bhaskara Pantula Mohan, Member (Judicial) Hon’ble V. Nallasenapathy, Member (Technical) For the Petitioner : Ms. Ishita Bajaj, Advocate. For the Respondent: Mr. Akshay Paranjape, CS a/w Mr. Navid Memon, Advocate Per: Bhaskara Pantula Mohan, Member (Judicial) ORDER 1. This Company Petition is filed by The Standard Scientific Co (hereinafter called “Petitioner”) seeking to set in motion the Corporate Insolvency Resolution Process (“CIRP”) against M. S. Mining and Consultancy Private Limited (hereinafter called “Corporate Debtor”) alleging that Corporate Debtor committed default in making payment to the extent of Rs. 8,35,487/- which is inclusive of interest @ 18% p.a. on the delayed
C.P. (IB) 2279/MB/IB/2019 payments, by invoking the provisions of Sections 9 of I&B Code (hereinafter called “Code”) read with Rule 6 of Insolvency & Bankruptcy (AAA) Rules, 2016.
2. The Petitioner submits that they are engaged in the business of providing laboratory products including chemicals, etc. The Corporate Debtor regularly used to place orders for laboratory product and chemicals and Petitioner has been supplying products to the Corporate Debtor since 2012.
3. The Petitioner submits that invoices were raised against the Corporate Debtor on and from April 2012 for which the Respondent failed to make complete payments. Further on various occasions also Respondent neglected communications from the Petitioner.
4. The Petitioner through its advocates issued a Demand Notice on 13.01.2019 demanding a sum of Rs. 8,35,487/- which is inclusive of interest @18% p.a., for which the Corporate Debtor failed to respond.
5. The Petitioner filed Affidavit as required U/s 9(3)(b) of the Code stating that no notice of dispute is given by the Corporate Debtor relating to the unpaid operational debt.
6. The Counsel appearing on behalf of Corporate Debtor admitted the debt and default and hence there is no opposition from the side of the Corporate Debtor for admission of this Petition.
7. This Bench having been satisfied with the Application filed by the Operational Creditor which is in compliance of provisions of section 8 & 9 of the Insolvency and Bankruptcy Code, admits this Application declaring moratorium with the directions as mentioned below: (a) That this Bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the corporate
C.P. (IB) 2279/MB/IB/2019 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.
(b) 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.
(c) 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.
(d) That the order of moratorium shall have effect from today 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.
(e) That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under section 13 of the Code.
(f) That this Bench hereby appoints Ms. Manisha Sanjay Agrawal, having office at Manisha and Associates, 238 Shriram Towers Near NIT, Sadar, Nagpur, Maharashtra, 440001 Email:
C.P. (IB) 2279/MB/IB/2019 m_taiyal@yahoo.com having Registration No. IBBI/IPA-003/IPA- ICAI-N-00241/2019-2020/12836 as an Interim Resolution Professional (IRP) to carry the functions as mentioned under the Insolvency & Bankruptcy Code.
8. Accordingly, this Petition is admitted.
9. The Registry is hereby directed to communicate this order to both the parties and also to the IRP immediately.
Sd/- Sd/- V. Nallasenapathy Bhaskara Pantula Mohan Member (Technical) Member (Judicial)
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