2020 (5) TMI 694 - Tri - Insolvency and Bankruptcy

Liquidation of the Corporate Debtor - Section 33 (2) of the IBC, 2016 - HELD THAT - Taking into consideration the provisions of Section 33 of IBC,2016 and in the absence of any opposition to the Application from the Promoters of the Corporate Debtor and also guided by the decision of the Hon ble Supreme Court in the matter of Mr. K. Sasidharan -Vs-- Indian Overseas Bank 2019 (2) TMI 1043 - SUPREME COURT , this Tribunal orders for the liquidation of the Corporate Debtor. Mr. K.C.Senthilkumar is appointed as the Liquidator of the Corporate Debtor to carry out the liquidation process subject to the terms of the directions imposed - application allowed.

Summary

Issues:
Liquidation of Corporate Debtor under Section 33(2) of IBC, 2016.

Analysis:
The Resolution Professional appointed by the Tribunal sought liquidation of the Corporate Debtor under Section 33(2) of the IBC, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated, and the Resolution Professional was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was constituted, and the Resolution Professional was appointed. Valuation of assets revealed the fair value and liquidation value of the Corporate Debtor. Despite issuing invitations for Expression of Interest (EOI), no prospective Resolution Applicant came forward. The CoC decided to liquidate the Corporate Debtor due to the absence of viable business and fixed assets. No pending applications under specific sections of the IBC were reported.

The third CoC meeting unanimously resolved to liquidate the Corporate Debtor and approved the Resolution Professional to act as the Liquidator. The Resolution Professional provided written consent to act as the Liquidator. Considering the provisions of Section 33 of the IBC, 2016, and the absence of opposition from the Promoters of the Corporate Debtor, the Tribunal ordered the liquidation.

The Tribunal appointed a specific Liquidator to oversee the liquidation process. The Liquidator was directed to strictly adhere to the IBC, 2016, and related regulations, issue public announcements, investigate financial affairs, communicate with relevant authorities, and proceed with liquidation as per the IBC guidelines. The Moratorium under Section 14 ceased to have effect, and a new Moratorium under Section 33(5) commenced. The Liquidator was instructed to investigate financial affairs, file reports, and involve relevant parties in the liquidation process.

The application for liquidation was disposed of with the outlined terms, ensuring a structured and compliant liquidation process for the Corporate Debtor.