2019 (10) TMI 417 - Tri - Insolvency and Bankruptcy

Liquidation of the Corporate Debtor - Section 33(2) of the Insolvency Bankruptcy Code, 2016 - HELD THAT - When no Resolution Applicant came forward with a viable and feasible resolution plan, the CoC could not get any opportunity to approve the resolution plan, therefore the CoC finally passed unanimous resolution on 20.06.2019 for liquidation of this Corporate Debtor. The Applicant (RP) herein placed this application annexing the resolution passed by the CoC on 20.06.2019 with 100% voting suggesting the same Resolution Professional s name to continue as Liquidator of the Corporate Debtor Company. This Bench hereby orders for liquidation.

Summary

Issues: Liquidation of Corporate Debtor

Analysis:
1. Background: The Company Petition was admitted with the appointment of an Interim Resolution Professional (IRP) followed by the constitution of the Committee of Creditors (CoC) and valuation of the Corporate Debtor.

2. Resolution Plan: Despite efforts, no Resolution Applicant proposed a viable plan, leading the CoC to unanimously pass a resolution for liquidation on 20.06.2019.

3. Liquidation Order: The Resolution Professional (RP) filed an application under section 33(2) of the Insolvency & Bankruptcy Code, 2016, seeking liquidation based on the CoC's resolution.

4. Decision: The Tribunal, satisfied with the CoC's decision, ordered the liquidation of the Corporate Debtor. The order included various directions:
- Issuing a public notice for liquidation as per the Code's provisions.
- Appointment of the RP as the Liquidator with full authority over the Corporate Debtor's affairs.
- Stipulation of fees for the Liquidator based on the value of the liquidation estate assets.
- Prohibition on legal proceedings against the Corporate Debtor without the Tribunal's approval.
- Notice of discharge to officers, employees, and workmen, except during the continued business operation by the Liquidator.
- Directives for the Liquidator to comply with the Code and relevant regulations.

5. Implementation: The Tribunal allowed the filed application, thereby approving the liquidation process for the Corporate Debtor as per the CoC's resolution and the legal provisions of the Insolvency & Bankruptcy Code, 2016.

This detailed analysis covers the background, resolution plan, liquidation order, decision, and implementation aspects of the Tribunal's judgment regarding the liquidation of the Corporate Debtor.