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2018 (10) TMI 1837 - Tri - Insolvency and BankruptcyLiquidation of the corporate debtor - absence of any resolution plan - HELD THAT - It is stated in the application that the corporate debtor does not have any running business nor any employees. The assets of CD majorly comprise factory land and building situated in Faridabad lying unused and various advances recoverable form related parties of Corporate Debtor. In the absence of any resolution plan it was decided in the 3rd meeting held on 14.06.2018 that the Corporate Debtor cannot be revived and should be liquidated - It is pertinent to note here that the Resolution Professional has submitted its willingness to act as a liquidator and undertook to submit its consent in specified form as per section 34(1) of the Code. Thus, in the absence of any resolution plan and for want of time beyond statutory Corporate Insolvency Resolution Process period; there is no other alternative but to order, in conformity with the 100% decision of the CoC, for liquidation of the corporate debtor under Section 33 of the Code - corporate debtor is ordered to be liquidated - application allowed.
Issues involved:
Application for liquidation of corporate debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. Analysis: 1. Background and Admission of Application: The application was filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the corporate debtor, M/s Forging Private Limited. The application stemmed from an earlier application filed by the sole financial creditor, Indiabulls Housing Finance Limited, which was admitted by the tribunal, appointing an Interim Resolution Professional. 2. Resolution Process and Meetings: Following the admission of the application, various steps were taken in accordance with the regulations, including the appointment of a Resolution Professional after the first meeting of the Committee of Creditors (CoC). The Resolution Professional confirmed that there was only one financial creditor, Indiabulls Housing Finance Limited, constituting the CoC. Subsequently, valuers were appointed to determine the fair value and liquidation value of the corporate debtor's assets. 3. Expression of Interest and Resolution Plan: Despite inviting Expression of Interest and receiving responses from four parties, no resolution plan was submitted within the stipulated time frame. The corporate debtor was found to lack any ongoing business or employees, primarily comprising unused factory land, buildings, and advances recoverable from related parties. 4. Decision for Liquidation: In the absence of a viable resolution plan and due to the expiry of the statutory Corporate Insolvency Resolution Process period, the CoC unanimously decided in a meeting to recommend the corporate debtor for liquidation. The Resolution Professional expressed willingness to act as the liquidator, leading to the order for liquidation under Section 33 of the Code. 5. Directions for Liquidation Process: The tribunal ordered the liquidation of the corporate debtor, appointing the Resolution Professional as the Liquidator. Various directions were issued, including the issuance of a Public Announcement, communication to relevant authorities, initiation of a fresh Moratorium, investigation of financial affairs, submission of a Preliminary Report, and dissemination of the order to concerned parties. 6. Conclusion and Disposal of Application: The judgment concluded by disposing of the application, directing necessary steps to be taken by the financial creditor, corporate debtor, and the Liquidator. The detailed directions outlined the process for liquidation in accordance with the Insolvency and Bankruptcy Code and relevant regulations. This comprehensive analysis of the judgment highlights the procedural aspects, decision-making process, and the subsequent directions issued for the liquidation of the corporate debtor, emphasizing compliance with the statutory framework and regulatory requirements.
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