2019 (7) TMI 1628 - Tri - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - Resolution Plan by CoC not received - HELD THAT - It is stated by the Counsel for the Resolution Professional that it was impossible to get any Resolution Plan by CoC within the period of 180 days the only recourse open is to pass an order to liquidate the Corporate Debtor in the manner as laid down in the Code and Regulations made thereunder. Since no Resolution Plan is received by this Authority under Sub-section (6) of Section 30 of the I B Code 2016 before the expiry of the Corporate Insolvency Resolution Process period of 180 days the Corporate Debtor has to be ordered for Liquidation. Corporate Debtor is ordered to be liquidated.

Summary

Issues Involved:
1. Application to exempt CIR Process period and reconstitute CoC.
2. Application to condone delay in filing.
3. Application for liquidation of the Corporate Debtor.

Issue I: Application to exempt CIR Process period and reconstitute CoC

The erstwhile Directors filed an application (MA/443/2019) under Section 60(5) of the I&B Code, 2016, seeking to exempt the entire CIR Process period for the Corporate Debtor and to reconstitute the Committee of Creditors (CoC). The Resolution Professional opposed the application, arguing that exempting the CIR Process would not benefit the depositors and could demoralize them. The Resolution Professional had already sought liquidation of the Corporate Debtor and was competent to make recoveries, rendering the Directors' suggestion baseless. The Tribunal rejected the application, affirming the Resolution Professional's actions.

Issue II: Application to condone delay in filing

The Resolution Professional filed an application (MA/453/2019) to condone a 9-day delay in filing another application (MA/454/2019). The Tribunal found the reasons provided in the Affidavit convincing and allowed the condonation of the delay, thereby accepting the application (MA/453/2019) in the Corporate Debtor's case.

Issue III: Application for liquidation of the Corporate Debtor

The Resolution Professional filed an application (MA/454/2019) under Section 33(2) of the I&B Code, 2016, seeking the liquidation of the Corporate Debtor, M/s. Thiripura Chits Private Limited. The Resolution Professional detailed the challenges faced, including the unavailability of records, inability to appoint valuers, and the involvement of numerous deposit holders. With no Resolution Plan received within the stipulated period, the Tribunal ordered the liquidation of the Corporate Debtor. The Resolution Professional was appointed as the Company Liquidator, and various directives regarding the liquidation process were issued. The Order was communicated for immediate compliance.

This comprehensive analysis of the judgment from the National Company Law Tribunal, Chennai Bench, outlines the issues addressed, the arguments presented, and the final decisions made regarding the applications filed in the context of the Corporate Debtor's insolvency proceedings.