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2019 (10) TMI 178 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - section 33 of the IB Code - revival of resolution plan - extension of time for CIRP by further 90 days - HELD THAT - Seen the application as well as the documents annexed in the application and on hearing the Applicant it is found that it is a fit case to pass an order for liquidation which is pending since long as the CIRP has already been expired long back i.e. somewhere 16.09.2018. Since Resolution does not reflect with regard to the appointment of Liquidator the Adjudicating Authority hereby recommend the name of Mr. Sunil Kumar Agarwal from the Panel of Insolvency Professionals recommended for appointment as Liquidator for Corporate Debtors located in the States of Gujarat and Madhya Pradesh. RP will discharge his duty till the appointment of Liquidator. Dy. Registrar is directed to refer the matter to the IBBI recommending the name of Liquidator for approval of the name of Liquidator and confirmation thereto. Application allowed.
Issues:
1. Application filed under section 33 of the IB Code for liquidation of the Corporate Debtor. 2. Non-cooperation of the Corporate Debtor affecting the Resolution Professional's ability to retrieve relevant information. 3. Extension of time for submission of Expression of Interest and Resolution Plan. 4. Filing of liquidation application due to non-receipt of Resolution Plan within the extended period. 5. Authorization by the Committee of Creditors for the Resolution Professional to file the liquidation application. 6. Recommendation for the appointment of a Liquidator for the Corporate Debtor. Analysis: 1. The application was filed under section 33 of the Insolvency and Bankruptcy Code (IB Code) seeking the liquidation of the Corporate Debtor. The prayers included passing an order for liquidation, issuing a public announcement, and directing the Registrar of Companies. The application also sought directions for the continuation of the moratorium and the role of the Resolution Professional (RP) until the pronouncement of the liquidation order. 2. The Resolution Professional faced challenges due to the non-cooperation of the Corporate Debtor in providing necessary information. The Committee of Creditors highlighted this issue in their meetings and directed the Corporate Debtor to cooperate with the RP, as reflected in the meeting minutes. 3. An extension of time was granted for the submission of Expression of Interest and Resolution Plan. Despite the extension, no Resolution Plan was received within the stipulated period, leading to the filing of an application for further extension under section 12 of the IB Code. 4. The Committee of Creditors, after the lapse of the extended period and the non-receipt of any Resolution Plan, authorized the RP to file a liquidation application. The decision was supported by a majority vote of the creditors, leading to the resolution for liquidation as per section 33(1)(a) of the IB Code. 5. The Resolution Professional was authorized by the Committee of Creditors to file the liquidation application, and the resolution was approved by a significant majority of voting shares. The RP was directed to pay the fees of the advocate representing them in the proceedings. 6. The Adjudicating Authority found it appropriate to pass an order for liquidation as the Corporate Insolvency Resolution Process (CIRP) had already expired. The Authority recommended the appointment of a specific Liquidator, Mr. Sunil Kumar Agarwal, from the Panel of Insolvency Professionals for Corporate Debtors in certain states. 7. The RP was instructed to continue discharging duties until the appointment of the Liquidator. The matter was referred to the Insolvency and Bankruptcy Board of India (IBBI) for approval of the recommended Liquidator's appointment. 8. The application was allowed, and the issues addressed, leading to the disposal of the instant IA related to the liquidation proceedings under the IB Code.
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