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2020 (1) TMI 108 - Tri - Companies LawLiquidation of Corporate Debtor - CIRP process was initiated - no resolution received - HELD THAT - Since no Resolution Plan is received by this Authority under Sub-section (6) of Section 30 of the I B Code, 2016, before the expiry of the Corporate Insolvency Resolution Process period of 180 days, the Corporate Debtor has to be ordered for Liquidation - It is noted that IRP is not willing to be appointed as the Official liquidator and thus COC left at this authority to appoint the Official Liquidator. This Authority hereby orders for liquidation of the Corporate Debtor viz., M/s. Vibha Overseas Exim Private Limited which shall be conducted in the manner as laid down in Chapter III of part II of the I B Code, 2016.
Issues involved:
Liquidation order for a Corporate Debtor under the Insolvency and Bankruptcy Code, 2016. Detailed Analysis: 1. Background and Initiation of Insolvency Proceedings: The case pertains to an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 by the Resolution Professional for the Corporate Debtor, seeking a liquidation order. The Corporate Debtor, M/s. Vibha Overseas Exim Private Limited, had its insolvency proceedings initiated under Section 10 of the I&B Code, 2016, with the appointment of an Interim Resolution Professional (IRP). 2. Resolution Process and Committee of Creditors (CoC): Following the initiation of insolvency proceedings, the IRP took over the management of the Corporate Debtor and invited claims from creditors as per regulatory requirements. The Committee of Creditors (CoC) was constituted, and the Resolution Professional was appointed in a CoC meeting. Subsequently, the CoC resolved to liquidate the Corporate Debtor, subject to approval by the Adjudicating Authority. 3. Valuation and Approval Process: Valuers were appointed to assess the assets of the Corporate Debtor, and their reports were ratified by the CoC. The sole member of the CoC, holding 100% voting rights, voted in favor of the liquidation resolution due to the absence of a viable resolution plan within the stipulated timeframe. 4. Liquidation Order and Appointment of Liquidator: With no resolution plan received within the prescribed period, the Authority proceeded to pass a liquidation order for the Corporate Debtor. An Official Liquidator was appointed by the Authority, as the IRP declined the role. The order detailed the cessation of moratorium, transfer of powers to the Liquidator, and specified procedures for legal proceedings during liquidation. 5. Operational Details and Compliance: The order outlined the discharge of officers and employees, the transfer of powers to the Liquidator, and the cooperation required from the Corporate Debtor's personnel. It also specified the fees payable to the Liquidator and directed communication of the order to relevant stakeholders for compliance. 6. Conclusion and Compliance with Liquidation Proceedings: The order allowed the initiation of liquidation proceedings against the Corporate Debtor, in accordance with the provisions of the I&B Code, 2016. The detailed directives provided in the order aimed to ensure a smooth transition into the liquidation phase, with clear guidelines for the Liquidator and stakeholders involved. This comprehensive analysis outlines the key aspects of the judgment, detailing the procedural steps followed in the liquidation order for the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016.
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