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2021 (3) TMI 1270 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - During the pendency, the Resolution Applicant has withdrawn his resolution plan and the application for extension has been frustrated. Hence, no resolution has been passed by COC and the present application has been filed under Section 33(1)(a) on 21.08.2020 and the essential ingredients of the same stand satisfied. In view of the satisfaction of the conditions provided under Section 33(1)(a) of the Code, the corporate debtor Best Foods Limited is directed to be liquidated in the manner as laid down in Chapter III of the Code - Application allowed.
Issues Involved:
1. Application for Liquidation under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. 2. Withdrawal of Resolution Plan by Maritime Trade Corporation. 3. Appointment of Liquidator. 4. Compliance with Regulations 39B, 39C, and 39D of the CIRP Regulations, 2016. 5. Application for additional time for completion of CIRP. 6. Application by Spring Infradev Limited for consideration of its Expression of Interest. Issue-wise Detailed Analysis: 1. Application for Liquidation under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016: The Resolution Professional (RP) for M/s Best Foods Limited filed IA No. 412/2020 under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking an order of liquidation. The CIRP against M/s Best Foods Limited was initiated on 02.02.2018, and despite several attempts to finalize a resolution plan, no plan was approved within the stipulated time. The Tribunal noted that the relevant provisions of Section 33(1)(a) were satisfied, as no resolution plan was received before the expiry of the insolvency resolution process period. 2. Withdrawal of Resolution Plan by Maritime Trade Corporation: Maritime Trade Corporation (MTC) initially submitted a resolution plan which was discussed but found to have significant gaps. Despite subsequent revisions and voting, MTC withdrew its resolution plan via email on 19.03.2020. Consequently, the application for additional time for completion of the CIRP process was rendered moot, and the RP sought liquidation. 3. Appointment of Liquidator: Under Section 34(1) of the Code, the RP, Mr. Vikram Bajaj, was appointed as the Liquidator, having submitted his consent in Form AA. The Tribunal verified his credentials and found nothing adverse, thus confirming his appointment. 4. Compliance with Regulations 39B, 39C, and 39D of the CIRP Regulations, 2016: The Tribunal examined the compliance with newly inserted Regulations 39B, 39C, and 39D. It was noted that the Committee of Creditors (COC) had not made recommendations regarding liquidation costs or the sale of the corporate debtor as a going concern. The Liquidator was directed to take necessary actions under the relevant regulations. 5. Application for additional time for completion of CIRP: CA No. 1077/2019, filed by the RP seeking additional time, was dismissed as withdrawn since the resolution plan was withdrawn by MTC, making the application for extension redundant. 6. Application by Spring Infradev Limited for consideration of its Expression of Interest: Spring Infradev Limited filed IA No. 371/2020 seeking consideration of its Expression of Interest (EOI) after the CIRP period had ended. The Tribunal noted that the applicant failed to submit the EOI within the prescribed time and was not part of the CIRP. Citing the Hon’ble NCLAT's decision in Kalinga Allied Industries India Pvt. Ltd. Vs. Hindustan Coils Ltd., the Tribunal ruled that it could not direct the COC to consider a resolution plan from a party not involved in the CIRP. Consequently, IA No. 371/2020 was dismissed. Conclusion: The Tribunal ordered the liquidation of M/s Best Foods Limited as per the provisions of the Insolvency and Bankruptcy Code, 2016. The RP, Mr. Vikram Bajaj, was appointed as the Liquidator. Applications for additional time and consideration of late EOI were dismissed. The Tribunal directed compliance with relevant regulations and issued necessary orders to facilitate the liquidation process.
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