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2019 (1) TMI 1781 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - HELD THAT - Considering the resolution approved by the COC, the facts and circumstances of the case, no meaningful resolution can be arrived at in the CIR Process. It is further submitted that two Registered Valuers were appointed to determine the fair value and liquidation value of the Corporate Debtor in accordance with Regulation 35 and both the have been submitted their valuation report to RP. Therefore the RP has stated that the case of the Corporate Debtor is a fit and appropriate case to be dissolved as recommended by the CoC and filed this Application for liquidation of Corporate Debtor. This Adjudicating Authority deems it fit to Order liquidation of the Corporate Debtor - Application disposed off.
Issues: Application for liquidation of a Corporate Debtor under the Insolvency and Bankruptcy Code, 2016.
Analysis: 1. Background and Initiation of CIRP: The case involves an application filed by the Resolution Professional (RP) for a Corporate Debtor under Corporate Insolvency Resolution Process (CIRP) as per the order dated 14.05.2018. The original petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was filed by the Financial Creditor, leading to the admission of the petition and appointment of the RP. 2. Meetings of the CoC and Lack of Resolution Plan: The application detailed the meetings of the Committee of Creditors (CoC) where it was highlighted that the Corporate Debtor had no office, directors, staff, or records. The CoC was informed that no viable Corporate Resolution Plan could be developed, leading to a proposal for liquidation which was unanimously approved. The RP received only one claim from the Financial Creditor, amounting to Rs. 188,91,41,501. 3. RP's Recommendations and Valuation Reports: The RP informed about the expenses incurred during the CIRP and the appointment of Registered Valuers to determine the fair value and liquidation value of the Corporate Debtor. Based on the facts presented, the RP recommended the dissolution of the Corporate Debtor due to the inability to arrive at a meaningful resolution in the CIR Process. 4. Order for Liquidation: Considering the circumstances, the Adjudicating Authority ordered the liquidation of the Corporate Debtor under Section 33(1)(a) of the I&B Code, 2016. The RP was appointed as the Liquidator, and the moratorium declared under Section 14 of the Code ceased with the approval of the order. 5. Operational Changes and Reporting Requirements: The order specified the cessation of powers of the Board of Directors and the transfer of authority to the Liquidator. The Liquidator was directed to submit progress reports periodically as per the regulations. The personnel of the Corporate Debtor were instructed to cooperate with the Liquidator, who was entitled to charge fees based on the liquidation estate assets. 6. Conclusion: The application for liquidation proceedings against the Corporate Debtor was disposed of, and the RP was appointed as the Liquidator to manage the affairs of the Corporate Debtor in accordance with the provisions of the I&B Code, 2016 and related regulations.
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