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Lawyer Files Application In NCLT To Initiate CIRP; Corporate Debtor Concedes [Read Judgment]

By LawStreet News Network      20 August, 2019 12:08 PM      0 Comments
Lawyer Files Application In NCLT To Initiate CIRP; Corporate Debtor Concedes [Read Judgment]

The National Company Law Tribunal (NCLT) on September 27, 2018, in the case of Naveen Malhotra v. M/S VTL (India) Limited has admitted an application filed by an advocate under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, with a prayer to initiate the Corporate Insolvency process against the corporate debtor.

It was the case of the applicant that he had rendered legal services to the corporate debtor and in pursuant of that a bill for Rs. 1,25,000/- vide dated 11.04.2017 was raised. The corporate debtor failed to make the payment despite several telephonic reminders.

It was submitted that there is no dispute regarding the due amount which was admitted by the director, Mr. Ujjwal Sharma vide affidavit dated 03.09.2018 who had been authorized vide resolution of Board of Directors.

It was also submitted that the present application was filed as neither the payment nor any notice of dispute was raised by the corporate debtor.

The corporate debtor has admitted about availing of the services from the applicant and also requested for time stating that due to financial difficulties, payment could not be made. The corporate debtor has further admitted that it is non-operational for many years and at present there are legal cases filed by the creditors against it.

It was also submitted that the bank has already sold the property related to the company to realize their claims and for balance, the matter is already pending before the Debt Recovery Tribunal, New Delhi.

In light of above facts and records, the tribunal admitted the application stating that the present application is complete and the Applicant is entitled to claim its dues, which remain uncontroverted by the Corporate Debtor, establishing the default in payment of the operational debt beyond doubt.

Accordingly, the tribunal appointed the Interim Resolution Professional (IRP) named by the applicant and initiated the corporate insolvency process.

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