Elan Professional Appliances Private Limited vs Customized Kitchen India Private Limited

Ch. Mohd. Sharief Tariq, J

The representative for the Operational Creditor is present. There is no representation on behalf of the Corporate Debtor. As seen from order dated 31.10.2019, the Corporate Debtor was proceeded Ex-Parte.

Under consideration is an Application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as "IBC, 2016") with the prayers to initiate Corporate Insolvency Resolution Process against the Corporate Debtor viz. Customized Kitchen India Private Limited (hereinafter referred as "CIRP"), declare moratorium and appoint Interim Resolution Professional (hereinafter referred as "IRP").

It is submitted by the representative for the Applicant that in July, 2018 kitchen appliances were sold by the Operational Creditor to the Corporate Debtor on three different dates for a total amount of Rs. 12,78,783/- and the Corporate Debtor has issued three cheques for the said amount. The cheques were presented for encashment but the same were dishonored for want of sufficient funds. Copies of the invoices raised and the cheques given are placed on record.

Subsequently, on 18.04.2019, the notice under Section 8 of the IBC, 2016 was sent to the Corporate Debtor, which was not delivered for insufficient address. However, the notice was sent through E-mail on 28.04.2019 on the E-mail address available in the Company Master Data which did not bounce, nor reply has been given by the Corporate Debtor.

The Operational Creditor has also fulfilled the requirements under Section 9(3)(b) &(c) of the IBC, 2016 by placing on record an affidavit wherein it is deposed that no notice of dispute has been given by the Corporate Debtor relating to the unpaid operational debt. The ledger statement with effect from 01.04.2018 to 31.03.2019 has also been placed on record, which shows the balance, as claimed by the Operational Creditor. Therefore, Application is admitted in terms of Section 9(5) of the IBC, 2016 and the commencement of the Corporate Insolvency Resolution Process is ordered which ordinarily shall be completed within 180 days, reckoning from the day this order is passed.

The moratorium is declared which shall have effect from the date of this Order until the completion of CIRP, for the purposes referred to in Section 14 of the IBC, 2016. It is ordered to prohibit all of the following, namely: -

(a) 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;

(b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein;

(c) 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 (54 of 2002);

(d) 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 of the Corporate Debtor shall not be terminated, suspended, or interrupted during moratorium period. The provisions of Sub-section (1) of Section 14 shall not apply to such transactions, as notified by the Central Government.

The Operational Creditor has not proposed the name of any Resolution Professional for appointment as IRP. Therefore, this Bench based on the previous list provided by the IBBI hereby appoints Mr. Gulshan Kumar Gupta as an IRP subject to the condition that no disciplinary proceedings are pending against the IRP. The IRP is directed to take charge of the Respondent Corporate Debtor's management immediately. He is directed to cause public announcement as prescribed under Section 15 of the IBC, 2016 within three days from the date the copy of this order is received, and call for submissions of claim in the manner as prescribed. The details of IRP are as under:

Name: Mr. Gulshan Kumar Gupta

Registration number: IBBI/IPA-001/IP-P00021/2016-17/10046

E-mail: ipgulshan@gmail.com

Mobile No.: 9810510390

The IRP shall comply with the provisions of Sections 13(2), 15, 17 & 18 of IBC, 2016. The Directors of the Corporate Debtor, its Promoters or any person associated with the Management of the Corporate Debtor are/is directed to extend all assistance and cooperation to the IRP as stipulated under Section 19, so that he could discharge his functions under Section 20 of the IBC, 2016.

The Operational Creditor and the Registry are directed to send the copy of this Order to IRP, so that he could take charge of the Corporate Debtor's assets etc., and make compliance with this Order as per the provisions of IBC, 2016.

The Registry is directed to communicate this Order to the Operational Creditor and the Corporate Debtor with immediate effect.

The Order is dictated and pronounced in the open court in the presence of the representative for the Operational Creditor.