Section 9 application under IBC admitted against Trivenimudrai Projects Ltd. as default established

Baij Nath Ram Nath (India) Private Limited Vs Trivenimudrai Projects Limited (NCLT Mumbai)

NCLT Mumbai held that application under section 9 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process [CIRP] against Corporate Debtor [Trivenimudrai Projects Limited] admitted since debt and default thereon stands established.

Facts- This Company Petition was filed on 14.12.2024 u/s. 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Baij Nath Ram Nath (India) Private Limited, the Operational Creditor (OC), for initiating Corporate Insolvency Resolution Process (CIRP) against Trivenimudrai Projects Limited, the Corporate Debtor (CD). The total amount of default alleged is Rs. 2,11,15,169/-.

Conclusion- Held that as regards default, the same stands clearly established. The last date of default is 15.05.2024, being the agreed date for payment under the MoU. No payment was made by the said date. Consequently, the OC became entitled to recover the entire original outstanding. As on 30.09.2024, the amount due and payable stood at Rs.2,11,15,169/-, which is well above the threshold prescribed under Section 4 of the IBC. The contention that only the settlement amount should be considered is contrary to the express terms of the MoU and settled law. We find that all pre-requisites of Section 9 of the IBC are fulfilled and, accordingly, we are satisfied that the instant Application is fit for admission under Section 9 of the IBC. The Applicant has attached all the documents as required and therefore the Application is complete. We also note that a Demand Notice dated 04.09.2024 was served upon the Respondent and was replied to by the Respondent vide its letter dated 07.10.2024.