2019 (3) TMI 1797 - Tri - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - extension of time pursuant to a unanimous decision taken by the COC - HELD THAT - In the absence of any resolution plan and for want of time beyond statutory CIRP period; there is no other alternative but to order in conformity with the majority decision of the COC for liquidation of the corporate debtor under Section 33 (2) of the Code. The application is allowed by ordering liquidation of the corporate debtor, namely M/S Ram Dev International Limited in the manner laid down in the Chapter Ill of Part Il of the Insolvency and Bankruptcy Code, 2016 - Application disposed off.

Summary

Issues: Application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016

In this judgment, the National Company Law Tribunal, Principal Bench, New Delhi, considered an application 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 Ram Dev International Limited. The application stemmed from an earlier application by an operational creditor for initiation of Corporate Insolvency Resolution Process (CIRP), which was admitted by the tribunal. The Interim Resolution Professional (IRP) had made public announcements inviting claims against the company, resulting in claims amounting to ?558.88 Crores from 101 creditors. Subsequently, a new Resolution Professional was appointed by the Committee of Creditors (COC) after the CIRP period was extended. The COC, in a meeting, approved the decision to initiate the liquidation process with a majority vote of 96.97%. Following this, a liquidator was proposed and appointed, and in the absence of a resolution plan within the statutory CIRP period, the tribunal ordered the liquidation of the corporate debtor in accordance with the COC's decision and the provisions of the Code. The judgment laid down detailed directions for the liquidator, including issuing a Public Announcement, communicating with relevant authorities, ceasing the existing moratorium, and following the prescribed process for liquidation. Additionally, the liquidator was tasked with investigating irregular transactions, addressing pending applications, submitting reports, and notifying concerned parties. The judgment concluded by disposing of the application in favor of liquidation.