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2020 (7) TMI 813 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Section 33(2) of I B Code, 2016 - HELD THAT - For want of a resolution plan the CoC took a decision by 98.45% vote share of the financial creditors in terms of section 33(2) of the I B Code. In view of the matter, there are no option but to pass the order of liquidation of the Corporate Debtor in the manner as laid down in the Chapter III of Part II of the I B Code. Corporate Debtor M/s. Jas Infrastructure And Power Limited having its registered office at Sector III Salt Lake City Ground Floor Kolkata-700106, in the state of West Bengal, is ordered to be liquidated - application allowed.
Issues involved:
1. Application for liquidation under Section 33(2) of I & B Code, 2016. 2. CoC's decision for liquidation due to lack of resolution plan. 3. Appointment of Liquidator and objections raised. 4. Legal objection regarding the law of limitation. 5. Order for liquidation and directions. Issue 1: Application for liquidation under Section 33(2) of I & B Code, 2016: The Resolution Professional (RP) filed an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of the Corporate Debtor, M/s Jas Infrastructure and Power Limited. The application was admitted due to delays caused by the pandemic situation and listed for an urgent hearing. Issue 2: CoC's decision for liquidation due to lack of resolution plan: The Committee of Creditors (CoC) convened multiple meetings but did not receive any resolution plan within the stipulated time. Consequently, with 98.45% voting share, the CoC decided in favor of liquidation of the company. The CoC also approved the appointment of a Liquidator and passed necessary resolutions for the liquidation process. Issue 3: Appointment of Liquidator and objections raised: The RP expressed unwillingness to continue as the Liquidator due to a demand for reduced fees by the CoC. The CoC's recommendation for a new Liquidator was challenged, citing inconsistency with Section 34 of the Code. The Tribunal appointed a new Liquidator, Mr. Kannan Tiruvengadam, based on competency and location proximity to the registered office. Issue 4: Legal objection regarding the law of limitation: The suspended board of the Corporate Debtor raised objections regarding the law of limitation, claiming the original Financial Creditor's claim was time-barred. However, the Tribunal rejected the objection, stating that no favorable order reversing the admission had been obtained, and no pending appeals were highlighted. Issue 5: Order for liquidation and directions: Considering the lack of a resolution plan and the CoC's decision, the Tribunal ordered the liquidation of the Corporate Debtor, M/s Jas Infrastructure and Power Limited. The order included appointing Mr. Kannan Tiruvengadam as the Liquidator, issuing public announcements, ceasing the moratorium, and directing the Liquidator to proceed with the liquidation process as per the Code and regulations. This comprehensive analysis covers the key issues addressed in the judgment by the National Company Law Tribunal, Kolkata, regarding the liquidation process of the mentioned Corporate Debtor.
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