2018 (9) TMI 2142 - Tri - Insolvency and Bankruptcy

Liquidation of the corporate debtor - Section 33 (2) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - In the absence of any resolution plan and for want of time beyond statutory CIRP period; there is no other alternative but to order, in conformity with the unanimous decision of the CoC, for liquidation of the corporate debtor under Section 33 of the Code. The application is allowed by ordering liquidation of the corporate debtor, namely M/s Moser Baer India Limited in the manner laid down in the Chapter IT of Part II of the Insolvency and Bankruptcy Code, 2016 along with conditions imposed - application allowed.

Summary

Issues involved: Application for liquidation of corporate debtor u/s 33(2) of Insolvency and Bankruptcy Code, 2016 based on Committee of Creditors' decision.

Summary:
The application was filed by the Resolution Professional u/s 33(2) of the Insolvency and Bankruptcy Code, 2016 for the liquidation of the corporate debtor, Moser Baer India Limited, as per the unanimous decision of the Committee of Creditors. The Interim Resolution Professional had taken over the management of the assets of the Corporate Debtor as per the provisions of the Code. Various valuers were appointed to determine the liquidation value, and an Information Memorandum was prepared and shared with the CoC members. Despite multiple extensions for submission of resolution plans, no response was received. Consequently, with the approval of the CoC, the decision was made to liquidate the Corporate Debtor due to the absence of any resolution plan. The liquidation value of the assets was determined, and the CoC resolved by 100% majority to proceed with liquidation. Therefore, in conformity with the CoC's decision, the Tribunal ordered the liquidation of the corporate debtor under Section 33 of the Code. Mr. Anil Kohli was appointed as the Liquidator, and various directions were issued for the commencement and process of liquidation in accordance with the relevant regulations.

The Tribunal's order included the appointment of Mr. Anil Kohli as the Liquidator, issuance of a Public Announcement, communication of the order to relevant authorities, cessation of the Moratorium, and initiation of a fresh Moratorium. The Liquidator was directed to proceed with the liquidation process as per the Code and submit a Preliminary Report within the specified timeline. The order was to be communicated to financial creditors, the corporate debtor, and the Liquidator for necessary actions, and a related company petition was disposed of accordingly.