2019 (10) TMI 1308 - Tri - Insolvency and Bankruptcy

Liquidation order - section 33 of the I B Code, 2016 - HELD THAT - It is seen from the record that there was only one Resolution Applicant - names Srei Multi Asset Investment Trust Vision India Fund (SMAITVIF) who vide email dated 6th June 2019 had informed the RP that based on their detailed internal discussion with their management post their presentation of the Resolution Plan to the CoC members in the 11th CoC meeting held on 17th May, 2019, they were of the opinion that without security of land on which the plant of Kohinoor Power is located, it is difficult to envisage any value for the assets of Kohinoor Power Private Limited and hence were no longer interested in pursuing the opportunity further as Resolution Applicant - 12th CoC meeting was held on 10th June, 2019 and it was unanimously agreed by the CoC members that since there was no Resolution Plan, liquidation is to follow as per the provisions of IBC, 2016. The process of liquidation of the Corporate Debtor under section 33 of the I B Code, 2016 is allowed.

Summary

Issues involved:
1. Admittance of Corporate Debtor in CIRP under section 9 of I&B Code
2. Replacement of IRP with RP by CoC
3. Expiry of CIRP time period and subsequent decision for liquidation
4. Passing of order of liquidation under section 33 of IBC

Analysis:

1. The Operational Creditor filed a petition under section 9 of the Insolvency & Bankruptcy Code, 2016 against the Corporate Debtor for default in paying operational debt. The authority admitted the Corporate Debtor in Corporate Insolvency Resolution Process (CIRP). An Interim Resolution Professional (IRP) was appointed, who was later replaced by a Resolution Professional (RP) by the Committee of Creditors (CoC) in a meeting. The RP proceeded with the CIRP, and after the stipulated time period, the CoC decided for liquidation due to the absence of a viable Resolution Plan.

2. The CIRP time period expired, and a 44-day exclusion was permitted, extending the completion time. With only one Resolution Applicant withdrawing their interest due to lack of security, the CoC unanimously agreed on liquidation as per IBC provisions. Consequently, a petition for liquidation was filed by the RP, leading to the Tribunal passing an order of liquidation under section 33 of the I&B Code.

3. The Tribunal's order directed the appointment of a Liquidator and issuance of a Public Announcement for the corporate debtor's liquidation. The order also communicated the cessation of the Moratorium under Section 14 and the commencement of a fresh moratorium under Section 33(5). The Liquidator was instructed to follow the liquidation process as per the IBC, file necessary reports, and ensure compliance with regulations governing liquidation proceedings.

4. The order also specified the communication of the order to relevant parties, including the Registrar of Companies, West Bengal, and the Insolvency and Bankruptcy Board of India. It further directed the Liquidator to proceed with the liquidation process in accordance with the IBC provisions, file required reports within specified timelines, and ensured the liquidator's fee forms part of the liquidation cost. The order disposed of the relevant petitions and mandated compliance with formalities for issuing a certified copy of the order.