2018 (4) TMI 1598 - AT - Insolvency and Bankruptcy

Initiate liquidation process in the matter of corporate debtor - no resolution plan has been received - proposed to recommend liquidation of the Company and the Resolution was passed with 100 % voting share rights by the COC - Held that - There are no fixed assets owned by the company as per the statement made in the status report as well as by the RP who is present in the court. The total liquidation value has been stated to be ₹ 7.35 crores. In view thereof, we declare that the only option left in the present case is to accept the recommendation of the COC. We also find apparently all other provisions of the statute as well as the regulations have been complied with. We are satisfied that the company namely Vedica Nuts Crafts Pvt. Ltd.-corporate debtor has to be liquidated. The resolution professional who is present before us has expressed his inability to continue as a liquidator on account of his other engagements as well as nonreceipt of complete fee. We appoint Mr. Shashi Kant Nemani, Email. Id [email protected] Mobile No. 9822094174 from the list rovided by IBBI as a liquidator in terms of provisions of Section 34(4).

Summary

Issues involved:
1. Application for initiating liquidation process in the matter of a corporate debtor.
2. Compliance with statutory provisions and regulations.
3. Appointment of a new liquidator.

Analysis:
1. The judgment pertains to an application seeking the initiation of the liquidation process for a corporate debtor, Vedica Nut Crafts Pvt. Ltd., due to the absence of any resolution plan being received. The Tribunal noted that a similar prayer had been made earlier, and despite efforts to invite resolution plans, none were received, leading to a recommendation for liquidation by the Committee of Creditors (COC) in a meeting where 100% voting share rights were exercised. The resolution professional, due to other engagements and non-receipt of complete fee, expressed inability to continue as a liquidator.

2. The Tribunal, after hearing the counsel and considering the absence of fixed assets owned by the company, declared that the only viable option was to accept the COC's recommendation for liquidation. It was observed that all relevant provisions of the Insolvency and Bankruptcy Code had been complied with, leading to the decision that the corporate debtor needed to be liquidated. Subsequently, a new liquidator, Mr. Shashi Kant Nemani, was appointed from the list provided by IBBI in accordance with Section 34(4) of the Code.

3. In furtherance of the liquidation process, the Tribunal issued directions to the newly appointed liquidator to ensure compliance with the provisions outlined in Chapter III (Section 33-54) of the Code. This included issuing a public announcement regarding the liquidation of the corporate debtor, notifying relevant authorities, and sending copies of the orders to the concerned entities. The judgment concluded by disposing of the application for liquidation.