2019 (2) TMI 1835 - Tri - Insolvency and Bankruptcy

Initiation of CIRP Process - Section 33(2) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - In exercise of powers conferred under Sub-Clauses (i), (ii) and (iii) of Clause (a) of Sub-section (1) of Section 33 of the I B Code, 2016, this Authority proceeds to pass Liquidation Order as follows - This Authority orders for liquidation of the Corporate Debtor viz., M/s. Praiseworth Infra Private Limited. - This Authority appoints the Resolution Professional viz., Mr. C. Ramasubramaniam as Company Liquidator, who shall issue a public announcement stating therein that the Corporate Debtor is in liquidation - The moratorium declared under Section 14 of the I B Code, 2016, shall cease to have effect from the date of passing of this order of liquidation. The petition filed by the Resolution Professional under Section 33(2) of the I B Code, 2016, for initiation of the Liquidation Proceedings against the Corporate Debtor viz., M/s. Praiseworth Infra Private Limited, stands disposed of.

Issues:
1. Application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.
2. Appointment of Resolution Professional as Company Liquidator.
3. Cessation of moratorium and legal proceedings against the Corporate Debtor.
4. Powers and responsibilities of the Company Liquidator during the liquidation process.

Analysis:
1. The judgment pertains to a Miscellaneous Application (MA) filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking an order of liquidation for the Corporate Debtor, M/s. Praiseworth Infra Private Limited. The Resolution Professional requested the National Company Law Tribunal, Chennai Bench, to appoint him as the Liquidator of the company due to the absence of any received Resolution Plans from prospective Resolution Applicants.

2. The Tribunal acknowledged the Resolution Professional's request and proceeded to pass a Liquidation Order. The Order included appointing the Resolution Professional, Mr. C. Ramasubramaniam, as the Company Liquidator. The Liquidator was tasked with issuing a public announcement confirming the commencement of the liquidation process for the Corporate Debtor.

3. Following the liquidation order, the moratorium declared under Section 14 of the Insolvency and Bankruptcy Code, 2016, ceased to have effect. Legal proceedings against the Corporate Debtor were prohibited, except those initiated by the Liquidator with prior approval from the Tribunal. The judgment clarified that certain legal proceedings could proceed as notified by the Central Government in consultation with financial sector regulators.

4. The judgment outlined the powers and responsibilities vested in the Company Liquidator during the liquidation process. It specified that all powers of the Board of Directors, Key Managerial Personnel, and Partners of the Corporate Debtor were transferred to the Company Liquidator. The personnel of the Corporate Debtor were instructed to cooperate with the Liquidator, and the Liquidator was entitled to charge fees as per the regulations specified under the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

This comprehensive analysis of the judgment highlights the key issues addressed by the National Company Law Tribunal, Chennai Bench, in the context of the liquidation proceedings for M/s. Praiseworth Infra Private Limited.

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