2019 (12) TMI 562 - Tri - Insolvency and Bankruptcy

Initiation of Liquidation proceedings - Sections 33 and 34 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - This Tribunal in the circumstances of the case, taking into consideration the provisions of law as well as on facts, is constrained to order for liquidation of the Corporate Debtor and amidst such background the Corporate Debtor stands liquidated with the incidence of liquidation to follow, on and from the date of this order in terms of the provisions of the IBC, 2016, and more particularly as given in Chapter - III of IBC, 2016, and also in terms of Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017.

Issues:
1. Application for initiation of Liquidation Proceedings under Sections 33 and 34 of the Insolvency and Bankruptcy Code, 2016.
2. Replacement of Interim Resolution Professional (IRP) by Resolution Professional (RP).
3. Extension of Corporate Insolvency Resolution Process (CIRP) period.
4. Decision for liquidation of the Corporate Debtor.
5. Declaration of certain transactions as preferential and undervalued.
6. Order for liquidation and appointment of Liquidator with specific directions.

Analysis:
1. The Application was filed by the Resolution Professional under Sections 33 and 34 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Liquidation Proceedings against the Corporate Debtor, M/s. Seatel Electronics (India) Private Limited. This was in compliance with the relevant provisions of the IBC, 2016.

2. Initially, an Application under Section 10 of the IBC, 2016, was filed by the Corporate Debtor, leading to the appointment of an Interim Resolution Professional (IRP). Subsequently, the Committee of Creditors (CoC) decided to replace the IRP with a Resolution Professional (RP) named Mr. Satyendra Prasad Khorania.

3. The CoC, in a meeting, resolved to extend the Corporate Insolvency Resolution Process (CIRP) period by filing an Application with the Tribunal. The CIRP period was extended by 90 days, but as no resolution plan was received, the CoC voted for the liquidation of the Corporate Debtor.

4. Following the decision of the CoC, the Tribunal ordered the liquidation of the Corporate Debtor as per the provisions of Section 33(2) of the IBC, 2016. The Resolution Professional was authorized to file the application for liquidation before the adjudicating authority.

5. Additionally, the Resolution Professional filed separate Applications to declare certain transactions as preferential and undervalued under Sections 43 and 45 of the IBC, 2016, respectively. These applications were part of the overall proceedings related to the liquidation of the Corporate Debtor.

6. The Tribunal, considering the facts and provisions of the law, ordered for the liquidation of the Corporate Debtor. The Resolution Professional, Mr. Satyendra Prasad Khorania, was appointed as the Liquidator with specific directions regarding the liquidation process, communication of the order to relevant authorities, submission of reports, and handling of pending issues related to the liquidation proceedings.

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