Kanthi Narahari JUDGMENT
Kanthi Narahari, Member (T)
1. The appeal is arising out of the impugned order dated 28th May, 2019 passed by the Adjudicating Authority (National Company Law Tribunal, Division Bench), Chennai admitting the application filed by the 2nd Respondent herein under Section 9 read with Rule-6 of Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'IBC').
2. Learned Counsel for the Appellant challenged the said order on the ground that the application filed by the 2nd Respondent herein is not maintainable in view of the reason that there is existence of dispute prior to issuance of Demand Notice by the 2nd Respondent.
3. Learned Counsel for the Respondent submitted that the 2nd Respondent supplied and delivered the materials in pursuance to the Purchase Orders made by the 3rd Respondent and the 3rd Respondent had defaulted in making payments.
4. Both the Counsel put forth their arguments extensively.
5. Heard learned Counsel appearing for the respective parties. Perused the pleadings and documents. The Adjudicating Authority admitted the application, vide order dated 28th May, 2019 with the following observations:
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7. For there being material aplenty reflecting the contract is in between the Operational Creditor and the Corporate Debtor and the supplies were made by the Operational Creditor to the Corporate Debtor basing on the purchase orders raised by the corporate debtor and the Corporate Debtor in turn made part payments to the Operational Creditor without raising any defence as stated now, we hereby hold that it is a fit case for admission, therefore this Company Petition is hereby admitted by appointing Dr. L. Natarajan as Interim Resolution professional, looking at the consent given by him with directions as follow:
(I) That Moratorium is hereby declared prohibiting all of the following actions, 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 benefits 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 (SARFAESI Act)
(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.
(II) That the supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period.
(III) That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
(IV) That the order of moratorium shall have effect from 28.05.2019 till the completion of the corporate insolvency resolution process or until this Bench approves the resolution plan under sub-section (1) of section