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2020 (1) TMI 1495 - Tri - Insolvency and BankruptcySeeking to pass an Order for Liquidating the Corporate Debtor - Sections 33(2) of IBC, 2016 Read with Rule 11 of NCLT Rule, 2016 - HELD THAT - The Resolution Professional and the CoC of the Corporate Debtor have made best efforts to find a suitable Resolution Plan to revive the business of the Corporate Debtor. However, no suitable Resolution Plan is submitted so as to consider the same by the CoC. Therefore, there is no other alternative for the CoC except to seek an order to liquidate the Corporate Debtor as per the provisions of the Code. The Resolution to initiate liquidation was also approved by the CoC with requisite majority and the instant Application is filed in accordance with law. It is hereby ordered that M/s.Innovative Studios Private Limited, Corporate Debtor be liquidated in the manner as laid down in Chapter Ill of Part Il of Code R/w IBBI (Liquidation process) Regulations, 2016 - Application allowed.
Issues Involved:
Liquidation of Corporate Debtor under IBC, 2016 Detailed Analysis: Issue 1: Liquidation Application The Application filed sought to liquidate the Corporate Debtor under Section 33(2) of IBC, 2016. The Resolution Professional, as the Applicant, requested the appointment of a Liquidator and the liquidation of the Corporate Debtor as a Going Concern. The CoC had previously attempted to find a suitable Resolution Plan but failed to receive any, leading to the decision to seek liquidation. Issue 2: CoC Meetings and Resolution Plans The CoC conducted multiple meetings where various aspects of the insolvency process were discussed. These included the rejection of Resolution Plans, extension requests, and the decision to recommend liquidation due to the lack of a viable Resolution Plan meeting the expectations of the CoC. The Resolution Applicant's revised plans and efforts made by the RP were also highlighted. Issue 3: Decision for Liquidation After thorough consideration of the pleadings, provisions of the Code, and the facts presented, the Tribunal acknowledged the efforts made by the Resolution Professional and the CoC to revive the business of the Corporate Debtor. However, due to the absence of a suitable Resolution Plan, the CoC decided to proceed with liquidation. The Tribunal approved the liquidation order and appointed the Resolution Professional as the Liquidator. Issue 4: Tribunal's Order In exercising powers under Section 33(2) of IBC, 2016, the Tribunal allowed the liquidation application. It directed the liquidation of the Corporate Debtor as per the Code and IBBI Regulations, appointed the Resolution Professional as the Liquidator, and instructed adherence to the legal process. The order was communicated to the Registrar of Companies for necessary action, with a directive for the Liquidator to provide a report by a specified date. This detailed analysis outlines the progression of events leading to the liquidation decision, the CoC's involvement, the Tribunal's assessment, and the subsequent order for liquidation under the IBC, 2016.
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