2023 (2) TMI 1139 - Tri - Insolvency & Bankruptcy

Maintainability of petition - applicability of principles of Res Judicata - initiation of CIRP - Financial Creditors - existence of debt due and payable or not - no opportunity was given to the Corporate Debtor to submit a resolution plan or restructure its debt under an inter creditor arrangement - violation of the RBI circular dated 07.06.2019 or not - non-payment on the part of Corporate Debtor - Company Petition is barred by Res Judicata, or not, as a petition filed in respect of the same alleged debt and default, arising of the same transaction and cause of action by the Applicant was adjudicated by this Tribunal - HELD THAT:- It is observed that the Corporate Debtor on 09.07.2018, had submitted a resolution plan which was rejected by the Financial Creditor on frivolous and arbitrary grounds - Upon perusal of records, this Bench is of the considered opinion that the money owed by the Corporate Debtor to the Financial Creditor is legally due and payable.

In the lights of the Order passed by Hon'ble Supreme Court in Swiss Ribbons Pvt. Ltd. & Ors. Vs. Union of India & Ors. [2019 (1) TMI 1508 - SUPREME COURT] upholding the Constitutional validity of IBC, the position is very clear that unlike Section 9, there is no scope of raising a 'dispute' as far as Section 7 petition is concerned. As soon as a 'debt' and 'default' is proved, the adjudicating authority is bound to admit the petition.

The application made by the Financial Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is in excess of minimum amount stipulated under section 4(1) of the IBC. Therefore, the debt and default stands established and there is no reason to deny the admission of the Petition. In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor.

Petition admitted.