The petitioner has filed this application u/s. 9 of the IBC, 2016 (hereinafter referred to as Code) claiming to be an Operational Creditor. As per the submissions made, the Operational Creditor is engaged in the business of manufacturing batteries and Investors etc. During the course of its business, it had supplied goods to one of its Distributors, the respondent (herein referred to as Corporate Debtor). The Operational Creditor has been maintaining a running account for the goods supplied to the Corporate Debtor and prays for initiation of the Insolvency Resolution Process against them as they are in default of payment of Rs. 3,21,54,784.81/-. In addition to their outstanding liability further liability towards payment of interest compounded at the rate of 24% per annum is also claimed. It is submitted that despite demands made from time to time, the Corporate Debtor has failed to liquidate its liability.

2.The present petition has been filed in the form and manner prescribed under the Code. Notice of demand under section 8 of the Code annexed with the copies of the invoices and delivery receipts from April 2015 to April 2016 were duly sent to the Corporate Debtor. The petitioner has been maintaining a ledger account recording the statement of the debit and credit entries in the running account with the Corporate Debtor which reflects an outstanding liability of Rs. 3,21,54,784.81/- towards the unpaid bills. It is submitted that in acknowledgment this outstanding liability, the Corporate Debtor had tendered two demand cheques in the sums of Rs. 25,00,000/- and Rs. 20,00,000/-. Both these cheques being number 375720 and 375722, dated 11.05.2016, raised on Axis Bank, were returned unpaid with the remarks insufficient funds and Payment stopped by the drawer.

3.The Operational Creditor has complied with the mandatory provisions of Section 9(3)(a), (b) & (c). Copies of the invoices and delivery challans sent along with their demand notice dated 04.05.2017 to the Corporate Debtor have been placed on record along with their postal record. The applicant submits that the Corporate Debtor has not raised any dispute with respect to the unpaid operational debt and an affidavit has been filed as required u/s. 9(3)(b). Further, apart from the statement of their Account, duly certified by the Banker, a letter issued by their Bank viz. IDBI Bank certifying that no credit has been made in the account of the Operational Creditor against the dishonoured instrument of Rs. 20,00,000/- is on record.

4.Steps for serving the Corporate Debtor on filing of the present petition were duly taken. As per the affidavit of service, the respondent company has closed down at the registered address, while Respondent 2 and 3 refused to accept the service the service. This is deemed sufficient service and none has appeared on their behalf before this Bench.

5.From the facts of the case, we are satisfied that the Operational Creditor has a legally recoverable debts for the goods supplied and is entitled to initiate the Insolvency Resolution Process against the Corporate Debtor. This petition u/s. 9 of the Code is therefore Admitted.

6.The petitioner has proposed the name of Shri Satinder Kapur as the Interim Resolution Professional No. IBBI/IPA-002/IP-00113/2016-2017/1186. His consent and confirmation that he is not disqualified to be appointed as one is on record. Accordingly he is being appointed as the Interim Resolution Professional. He shall take necessary steps in accordance with Section 15, 17 and 18 of the Code and file his report within the statutory period.

7.A moratorium in terms of section 14 of the Code is being issued prohibiting the following:

(a) 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 security7 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;

(d) recovery of any property by an owner or lessor where such properly is occupied by or in the possession of the corporate debtor.

8.It is further directed that:

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

(b) The provisions of sub-section (1) of section 14 of the Code shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

9.The order of moratorium shall have effect from the date of this order till the completion of the corporate insolvency resolution process.

10.Copy of the order be communicated to both the parties.