In re Parquet Furnishers Pvt. Ltd. (NCLT Delhi)
NCLT Delhi held that application under section 10 of the Insolvency and Bankruptcy Code read with rule 7 for initiating Corporate Insolvency Resolution Process stands admitted as Corporate Applicant established debt and default thereon.
Facts- This Application has been filed by M/s. Parquet Furnishers Pvt. Ltd. (Corporate Applicant), before this Adjudicating Authority, under Section 10 of the Insolvency and Bankruptcy Code, 2016 r/w Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating the Corporate Insolvency Resolution Process, declaring moratorium and for appointment of Interim Resolution Professional, against itself, on the ground that the Corporate Applicant has defaulted/failed to clear its financial debt and the further inability to pay the debts owed to its Creditors.
Conclusion- Held that the Application is complete in all respects, the existence of financial debt and default stands established, and there exists no legal bar under Section 11 to the initiation of CIRP. Financial Creditor has expressly consented to the same.
Held that once the Corporate Applicant has established default in respect of the debts due and payable, the application is required to be admitted in terms of the Code. In the present case, the Applicant has prima facie made out a case for initiation of the Corporate Insolvency Resolution Process against itself, and accordingly, the application is liable to be admitted, warranting further consequential steps including declaration of moratorium and appointment of the Interim Resolution Professional.
