2019 (9) TMI 1547 - Tri - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - Section 33(1)(a) of Chapter III of I B Code, 2016 - HELD THAT - 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. This Authority hereby orders for liquidation of the Corporate Debtor viz., M/s. Gold King Tex India Private Limited which shall be conducted in the manner as laid down in Chapter III of part II of the 1 B Code, 2016 - Application allowed.

Summary

Issues involved:
Liquidation of Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.

The judgment pertains to an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of a Corporate Debtor. The Resolution Professional had taken over the management of the Corporate Debtor following the initiation of Corporate Insolvency Resolution Process (CIR Process). After the expiry of the 180-day CIR Process period and with no Resolution Plan received, the Committee of Creditors (CoC) decided to liquidate the Corporate Debtor with 100% voting share. The Resolution Professional was appointed as the Liquidator, and the CoC directed the filing of an application for liquidation before the Adjudicating Authority. The Tribunal, exercising powers under Section 33 of the Code, passed an order for the liquidation of the Corporate Debtor, appointing the Resolution Professional as the Company Liquidator. The order included provisions regarding the cessation of moratorium, legal proceedings, discharge of officers and employees, powers of the Liquidator, cooperation by Corporate Debtor personnel, fee entitlement of the Liquidator, and communication of the order to relevant entities. The application for initiation of Liquidation Proceedings against the Corporate Debtor was allowed, and the order was pronounced in open court.

In summary, the judgment addresses the liquidation of a Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. It outlines the process followed, including the appointment of the Resolution Professional as the Liquidator, the decision of the CoC to liquidate the Corporate Debtor, and the Tribunal's order for liquidation. Various provisions regarding the conduct of liquidation proceedings, the role and powers of the Liquidator, cooperation by Corporate Debtor personnel, fee entitlement of the Liquidator, and communication of the order to relevant entities are included in the order. The application for initiation of Liquidation Proceedings against the Corporate Debtor is allowed, and the order is pronounced in open court.