2019 (3) TMI 1777 - Tri - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT - No resolution plan is received. Learned Resolution Professional has also given consent to act as Liquidator has appearing in Pages 55 to 59 attached to the I.A No. 382 of 2018, and he has also competent to swear the present Affidavit dated 15th November, 2018 to act as liquidator in accordance with Section 34(1) of the I B Code, 2016 and Regulation 3 of IBBI (Liquidation Process) Regulations, 2016. The CoC in its meeting dated 15th November, 2018 has proposed the Applicant as a liquidator and agreed to the initiation of liquidation process under Section 33 of the I B Code. The Adjudicating Authority, by exercising powers conferred under Section 33 of the I B Code, 2016 has to pass order of liquidation - the liquidation order requiring Corporate Debtor i.e., M/s Concur Marketing Private Limited be liquidated.

Summary

Issues:
1. Application for initiation of liquidation process of the Corporate Debtor based on the decision of the Committee of Creditors.
2. Appointment of Resolution Professional as Liquidator for the liquidation process.
3. Powers and duties of the Liquidator as per the Insolvency and Bankruptcy Code, 2016.

Analysis:
1. The application (I.A No. 382 of 2018) was filed by the Resolution Professional under Section 60 r/w Section 33(2) of the I&B Code, 2016, seeking permission to initiate the liquidation process of the Corporate Debtor. The Committee of Creditors, in its 4th meeting, unanimously decided to proceed with liquidation due to the lack of resolution plans and operational activities by the Corporate Debtor. The CoC appointed the Resolution Professional as the Liquidator for the process. The Tribunal, after considering the application and documents, passed an order for liquidation under Section 33 of the I&B Code, appointing the Resolution Professional as the Liquidator.

2. The Tribunal's order specified that the Resolution Professional, now appointed as the Liquidator, would have all powers vested in the Board of Directors, Key Managerial Personnel, and Partners of the Corporate Debtor. The Liquidator is tasked with managing the affairs of the Corporate Debtor during the liquidation process. The order also mandated the Corporate Debtor's personnel to provide necessary assistance and cooperation to the Liquidator. Additionally, a public announcement regarding the liquidation of the Corporate Debtor was directed to be issued within 5 days of the order.

3. The order further outlined that no legal proceedings could be initiated against the Corporate Debtor, except for specific transactions notified by the Central Government. The Liquidator's fee would be determined based on the assets of the liquidation estate and paid from the proceeds as per Section 53 of the I&B Code. The Liquidator was directed to comply with all provisions of the IBC, 2016, and rules framed by IBBI. The case was scheduled for a follow-up hearing on 15th April, 2019, to review the progress of the liquidation process.