2019 (12) TMI 1584 - Tri - Insolvency and Bankruptcy

Seeking Liquidation of the Corporate Debtor - Section 33 of the Insolvency Bankruptcy Code, 2016 - Committee of Creditors meeting has approved for Liquidation - HELD THAT - In the CoC meeting dated 01.08.2019, the CoC unanimously decided to liquidate the Corporate Debtor under section 33(1) of the I B Code. The CoC decided that the RP Mr. Dhanshyam Patel be appointed as liquidator subject to approval of this Bench. The company is ordered to be liquidated - the Process of Liquidation shall commence as per the Chapter III of the Code from date of this Order - application allowed.

Summary

Issues: Application for Liquidation under Section 33 of the Insolvency & Bankruptcy Code, 2016.

Detailed Analysis:

1. Admission of Application and Appointment of Interim Resolution Professional (IRP):
The application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the Operational Creditor against the Corporate Debtor was admitted by the Bench, and Mr. Dhanshyam Kantilal Patel was appointed as the Interim Resolution Professional (IRP) to conduct the Corporate Insolvency Resolution Process (CIRP).

2. Constitution of Committee of Creditors (CoC) and Public Announcement:
Following the admission of the application, a public announcement inviting claims from all creditors was made, and the CoC was constituted. The CoC consisted of one Financial Creditor with 100% voting share, and subsequent meetings were held to discuss the resolution process.

3. Decision for Liquidation:
After several meetings, it was noted that no Expressions of Interest (EOI) were received from Prospective Resolution Applicants, and there was no income from the Corporate Debtor post CIRP. Consequently, the Financial Creditor unanimously decided to liquidate the Company of the Corporate Debtor, leading to a resolution passed by the CoC with 100% vote to initiate liquidation proceedings.

4. Appointment of Liquidator and Valuation of Assets:
The Resolution Professional was appointed as the Liquidator subject to the approval of the Bench. Additionally, registered valuers were appointed to determine the liquidation value and fair value of the Corporate Debtor's assets. The valuation reports indicated the fair value and liquidation value of the Corporate Debtor.

5. Order for Liquidation Process:
Based on the circumstances and facts presented, the Bench ordered the commencement of the Liquidation process as per the provisions of the Insolvency and Bankruptcy Code. The Resolution Professional was appointed as the Liquidator, and directions were given for advertising the liquidation in newspapers, forwarding the order to the concerned authority, seeking necessary directions during the process, and representing the Corporate Debtor before government authorities.

This detailed analysis outlines the progression of events leading to the decision for liquidation under Section 33 of the Insolvency & Bankruptcy Code, 2016, highlighting the key steps taken by the Tribunal and the parties involved in the resolution process.