Reliance Communications & Infrastructure Ltd. v. TVC Skyshop Ltd.

INSOLVENCY AND BANKRUPTCY CODE, 2016,

--Initiation of corporate insolvency resolution process by operational creditor --Non- payment of duesNon-appearance of corporate debtor on date of hearing --Whether petition for initiation of corporate insolvency resolution process admissible--Where corporate debtor failed to pay the dues to the operational creditor and also did not appear before the Bench on the date of hearing, then, petition filed for initiation of corporate insolvency resolution process was to be admitted.--RCIL provided mobile phone connections to TVC but TVC did not pay the dues. RCIL filed civil suit to recover the said dues but there was no representative of TVC appeared on the specified date, therefore, Single Judge passed ex-parte decree against TVC. TVC filed appeals for setting aside the said decree but the same was dismissed by High Court and Supreme Court. Thus, RCIL filed petition for initiation of CIRP against TVC. Held: RCIL filed an affidavit of service stating that the date of hearing was intimated and copy of company petition was served to TVC personally. Despite this, TVC did not appear before the Bench. Further, there was a debt as defined in section 3(11) read with Regulation 7 of CIRP Regulation, also there was default within the meaning of section 3(12). Further that, there was no disciplinary proceedings against the IRP, therefore, petition filed under section 9 was admitted.