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2019 (9) TMI 1669 - Tri - Insolvency and BankruptcySeeking Liquidation of Corporate Debtor - Section 33(2) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - Since no Resolution Plan is received by this Authority under Sub-section (6) of Section 30 of the I B Code, 2016, before the expiry of the Corporate Insolvency Resolution Process period of 180 days, the Corporate Debtor has to be ordered for Liquidation. Application allowed.
Issues involved:
1. Application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. 2. Lack of assets and business prospects leading to the decision for liquidation by the Committee of Creditors (CoC). 3. Appointment of Company Liquidator and the process of liquidation as per the I&B Code, 2016. Analysis: Issue 1: Application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 The case involved an application (MA/855/2019) filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking an order of liquidation for the Corporate Debtor, M/s. Adept Technology Private Limited. The Resolution Professional highlighted the lack of cooperation from the suspended directors in providing essential financial information, indicating the company's dire financial situation. Issue 2: Lack of assets and business prospects leading to the decision for liquidation by the Committee of Creditors (CoC) The Committee of Creditors (CoC) convened meetings and assessed the financial status of the Corporate Debtor, M/s. Adept Technology Private Limited. Considering the absence of assets, business prospects, and the mounting liabilities of the company, the CoC decided that continuing the Corporate Insolvency Resolution Process would only worsen the financial strain on the Corporate Debtor. Consequently, the CoC resolved to apply for liquidation without pursuing the resolution process further. Issue 3: Appointment of Company Liquidator and the process of liquidation as per the I&B Code, 2016 In response to the CoC's decision and the absence of a resolution plan within the stipulated period, the National Company Law Tribunal passed an order for the liquidation of the Corporate Debtor, M/s. Adept Technology Private Limited. The Tribunal appointed Mr. Ashok Seshadri as the Company Liquidator, who was tasked with conducting the liquidation process in accordance with the provisions outlined in Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016. The order also specified the cessation of the moratorium, transfer of powers to the Company Liquidator, and outlined the responsibilities and authorities of the Liquidator during the liquidation proceedings. In conclusion, the Tribunal's judgment reflected a comprehensive analysis of the financial distress faced by the Corporate Debtor, leading to the decision for liquidation based on the CoC's resolution and the provisions of the Insolvency and Bankruptcy Code, 2016. The appointment of the Company Liquidator marked the initiation of the liquidation process, ensuring compliance with legal procedures and safeguarding the interests of the creditors and stakeholders involved.
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