2019 (2) TMI 1992 - Tri - Insolvency and Bankruptcy

Seeking order of liquidation in respect of the corporate debtor - appointment of Resolution Professional as the Liquidator - Sections 33(1)(b) (i), (ii), (iii) and 33 (2) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - In this case the Resolution Professional has furnished his consent as at Annexure RP-2 giving all the necessary particulars and has shown his willingness to be appointed as Liquidator. Mr. Vinod Kumar Mahajan, Resolution Professional is appointed as the Liquidator for the purposes of liquidation of the corporate debtor in terms of Section 33 (2) of the Code - the corporate debtor M/s Mahabir Techno Limited is allowed to be liquidated - Application allowed.

Summary

Issues: Liquidation order sought under Insolvency and Bankruptcy Code, 2016 for a corporate debtor.

Detailed Analysis:

1. Background and Admission of Petition: The Resolution Professional filed an application seeking a liquidation order for the corporate debtor under Sections 33(1)(b) (i), (ii), (iii) and 33 (2) of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 30.10.2018, declaring a moratorium and appointing an Interim Resolution Professional.

2. Committee of Creditors and Business Closure: After the public announcement inviting claims and the constitution of the Committee of Creditors (CoC), it was found that the machinery and stocks of the corporate debtor were removed even before the bank took physical possession. The business had been closed, and the balance sheet was not available after 31.03.2017.

3. Resolution for Liquidation: In a subsequent CoC meeting, it was resolved to liquidate the corporate debtor due to the closure of the company and lack of business activity. The Resolution Professional's counsel referred to relevant sections of the Code, emphasizing the need for liquidation.

4. Appointment of Liquidator: The Resolution Professional expressed consent to act as the Liquidator, meeting the requirements of Section 34(1) of the Code. Consequently, the tribunal ordered the liquidation of the corporate debtor and appointed the Resolution Professional as the Liquidator.

5. Compliance and Directions: The tribunal emphasized strict compliance with the Code and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Various directions were outlined, including the cessation of powers of the Board of Directors, cooperation requirements, and publishing public announcements.

6. Further Directives: The Liquidator was directed to publish a public announcement calling for stakeholder claims, file preliminary and progress reports as per regulations, and clarify that Financial Creditors could enforce personal guarantees.

7. Conclusion: The tribunal disposed of the application, ordering the liquidation of the corporate debtor and detailing the necessary steps and compliance measures to be followed by the appointed Liquidator.