2020 (2) TMI 1652 - Tri - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - section 33 of IBC - HELD THAT - According to the RP, even after issuing notice, no response was obtained from the above parties. RP has also noted that Sabkaa Payments Limited is the subsidiary company of the Corporate Debtor and the suspended directors of the Corporate Debtor are directors in the said company - The Resolution Professional further submitted that no positive response was received with regard to his efforts of a possible resolution plan of the Corporate Debtor. He has also noticed that the Corporate Debtor was under severe financial stress since the last 2 years and the Company had virtually no employees and no infrastructure to revive its operations. The Corporate Debtor M/s.Achariya Techno Solutions (India) Pvt Ltd is hereby put under liquidation with immediate effect under Section 33(2) of IBC, 2016 - application allowed.

Summary

Issues: Liquidation of Corporate Debtor

Analysis:
1. The Interim Resolution Professional filed MA/05/KOB/2020 under Section 33(2) of the IBC, 2016, following the order for Corporate Insolvency Resolution Process issued by the Tribunal in a previous case. Shri Shawn Jeff Christopher was appointed as the Interim Resolution Professional/Resolution Professional.

2. Public Notice was issued to invite claims, and a report on the constitution of the Committee of Creditors (COC) was submitted.

3. The Resolution Professional highlighted that the Corporate Debtor had not conducted the Annual General Meeting for 2018-19. The Company had no employees, registered office, or complete records for audit. Amounts due from various parties to the Corporate Debtor were identified, with no response received after issuing notices.

4. Despite efforts for a resolution plan, no positive response was received, indicating severe financial stress for the Corporate Debtor over the past two years, with no infrastructure to revive operations.

5. The Committee of Creditors, with 87% voting rights, decided to proceed with liquidation, approving liquidation costs and expenses up to Rs. 2,50,000 to be borne by the Corporate Debtor's funds.

6. The Resolution Professional submitted prayers for liquidation, appointment as Liquidator, repayment orders to parties owing to the Corporate Debtor, and necessary orders for justice.

7. After hearing the Resolution Professional's counsel and reviewing the case records, the Tribunal ordered the immediate liquidation of the Corporate Debtor under Section 33(2) of the IBC, 2016. Shri Shawn Jeff Christopher was appointed as the Liquidator, subject to specified requirements and adherence to IBC provisions and regulations issued by IBBI.

8. The Liquidator was directed to fulfill duties as per IBC sections and IBBI regulations. The case MA/05/KOB/2019 was disposed of accordingly.