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2018 (8) TMI 2051 - Tri - Insolvency and BankruptcySeeking Liquidation of Corporate Debtor - Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - A perusal of the of the Minutes of the Meeting of the CoCs dated 18.07.2018 reveals that till the expiry of the maximum period of CIRP, no Resolution Plan was approved by the CoCs under Sub-section (4) of Section 30 of the I B Code, 2016. Under these circumstances, the case falls within the purview of Section 33(1)(a) of the I B Code, 2016, as no Resolution Plan has been received by this Authority, till the expiry of the minimum period permitted for completion of the CIR Process under Section 12 of the Code, 2016. This Adjudicating Authority did not receive any Resolution Plan under Sub-section (6) of Section 30 - this Authority hereby orders for liquidation of the Corporate Debtor viz., M/s. GB Engineering Enterprises Private Limited, which shall be conducted in the manner as laid down in Chapter III of part II of the I B code, 2016 - application allowed.
Issues:
Liquidation of Corporate Debtor under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. Analysis: The case involved a Miscellaneous Application filed by the Resolution Professional seeking an order for the liquidation of the Corporate Debtor under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. The application was based on the fact that no Resolution Plan had been received by the Adjudicating Authority within the stipulated time frame. The Corporate Debtor, M/s. GB Engineering Enterprises Private Limited, had initiated Corporate Insolvency Resolution Process (CIRP) under Section 10 of the I&B Code, 2016, which led to the appointment of an Interim Resolution Professional. Subsequently, the Resolution Professional was appointed by the Adjudicating Authority. Despite efforts to elicit interest through an 'Expression of Interest' process, no Resolution Plan was submitted by any applicant, leading to the decision for liquidation. The Resolution Professional highlighted that the Corporate Debtor had minimal operations with high fixed overhead expenses that could not be sustained by the revenue generated. The operations were running at less than 1% of production capacity, with most existing orders completed. Additionally, a lack of cooperation from workers and management, along with mounting liabilities, further contributed to the decision for liquidation. The Committee of Creditors (CoCs) unanimously agreed that there was no viable Resolution Plan and passed a resolution to file for liquidation, appointing the Resolution Professional as the Liquidator. The Adjudicating Authority, after reviewing the facts presented in the application, proceeded to order the liquidation of the Corporate Debtor in accordance with Section 33 of the I&B Code, 2016. The order outlined the appointment of the Company Liquidator, cessation of the moratorium, transfer of powers to the Liquidator, and the conduct of liquidation proceedings as per the regulations. It also specified the duties and responsibilities of the Liquidator, including the right to charge fees for managing the liquidation estate. The order directed the Registry to notify relevant entities about the liquidation process and compliance requirements. In conclusion, the Miscellaneous Application filed by the Resolution Professional for the initiation of liquidation proceedings against the Corporate Debtor was disposed of, and the order for liquidation was pronounced in open court, detailing the necessary steps to be taken in the liquidation process.
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