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2021 (1) TMI 1189 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Corporate Debtor has not been working since long and the last Balance Sheet i.e., found in the MCA Portal is for the year 2012-2013 - Corporate Debtor Directors are also not traceable - section 33(2) of IBC - HELD THAT - Though this Company Petition was admitted on 03.01.2020, for the application for appointment of Authorized Representative remained pending for long time, the RP could not get home buyers approval until before 2nd CoC meeting. Of late the AR being appointed, the CoC held meeting on 12.12.2020 and e-voted on with 96.7% approval on 14.12.2020 for liquidation of the Corporate Debtor, accordingly the RP filed this Application proposing liquidation of the Corporate Debtor. It is also pertinent to mention that RP having given consent to be appointed as a Liquidator, the same has been filed along with this application for appointment of RP as Liquidator. As the company has not been working since long and the Directors of the company are also not traceable, the CoC has taken a right decision proposing for liquidation of the Corporate Debtor - liquidation is ordered subject to conditions imposed. Application allowed.
Issues: Application for liquidation of Corporate Debtor based on CoC resolution.
The judgment delivered by the National Company Law Tribunal, Principal Bench in New Delhi pertains to an application filed under section 33(2) of the Insolvency and Bankruptcy Code (IBC) for the liquidation of a Corporate Debtor. The Committee of Creditors (CoC) passed a resolution with 96.7% voting, citing that the Corporate Debtor only possesses land in Ghaziabad, has been non-operational for a significant period, and its Directors are untraceable. The CoC sought liquidation based on these grounds. It was noted that a previous Company Petition against the Corporate Debtor had been admitted earlier. Despite delays in appointing an Authorized Representative, the CoC eventually approved the liquidation proposal with a high percentage of votes. The Resolution Professional (RP) was proposed to act as the Liquidator, and the RP's consent for the appointment was submitted along with the liquidation application. The Tribunal, upon reviewing the circumstances, agreed with the CoC's decision to opt for liquidation of the Corporate Debtor. Consequently, the Tribunal issued directions for the liquidation process. The Corporate Debtor was ordered to be liquidated as per the provisions outlined in the relevant chapter, with a public notice to be issued declaring the commencement of liquidation and instructing the Liquidator to inform the Registrar of Companies (ROC) where the Corporate Debtor is registered. The RP, Mr. Sanjay Kumar Singh, was appointed as the Liquidator, with all powers of the board of directors, key managerial personnel, and partners of the Corporate Debtor vested in the Liquidator. The personnel of the Corporate Debtor were instructed to cooperate with the Liquidator as necessary. The Liquidator's fees for conducting the liquidation proceedings were to be determined in accordance with the regulations and paid from the proceeds of the liquidation estate. Furthermore, the Tribunal decreed that no legal proceedings could be initiated against the Corporate Debtor without prior approval, except as permitted by the Code. The liquidation order was deemed a notice of discharge for the Corporate Debtor's officers, employees, and workmen, except where the business operations continue during liquidation. The Liquidator was directed to fulfill the functions prescribed under the IBC and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations. The Registry was instructed to promptly communicate the order to the concerned parties via email, thereby concluding the disposition of the application for liquidation.
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