2020 (3) TMI 265 - Tri - Insolvency and Bankruptcy

Liquidation Order - no resolution plan received - HELD THAT - No Resolution Plan has been received by this Adjudicating Authority under sub-Section (6) of Section 30 of the Insolvency and Bankruptcy Code, 2016, the Corporate Debtor has to be ordered for Liquidation. This Adjudicating Authority orders for liquidation of the Corporate Debtor viz. M/s. BIW Fabricators Private Limited.

Summary

Issues: Liquidation order under Section 33(2) of Insolvency and Bankruptcy Code, 2016 for BIW Fabricators Private Limited

Analysis:

1. Background and Initiation of CIRP:
The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor was initiated by the NCLT, Mumbai Bench on 14.01.2019. An Interim Resolution Professional (IRP) was appointed, followed by the current Resolution Professional (RP) on 23.07.2019. Public announcements were made in accordance with the Insolvency and Bankruptcy Code, 2016, as required by law.

2. Formation of Committee of Creditors (CoC) and Liquidation Decision:
The Committee of Creditors (CoC) was formed on 06.02.2019, and valuers were appointed within the prescribed timeline. Despite approval of the Expression of Interest (EoI) by the CoC, no submissions were received by the deadline of 10.08.2019. Consequently, the RP recommended the liquidation of the Corporate Debtor, which was decided in the CoC meeting on 13.09.2019.

3. Order of Liquidation:
With no Resolution Plan received by the Adjudicating Authority under Section 30(6) of the IBC, the Corporate Debtor was ordered for liquidation. The Adjudicating Authority, exercising powers under Section 33 of the IBC, proceeded to pass the Liquidation order appointing the RP as the Company Liquidator.

4. Provisions of Liquidation Order:
The Liquidation order directed the RP to issue public announcements, cease the moratorium declared under Section 14 of the IBC, and handle legal proceedings on behalf of the Corporate Debtor. The order also specified the transfer of powers to the Company Liquidator, outlined the cooperation required from personnel, and established the fees for the conduct of liquidation proceedings.

5. Compliance and Disposal of Application:
The Liquidation order required the Company Liquidator to send copies to relevant authorities for information and compliance. The application for initiation of Liquidation Proceedings against the Corporate Debtor was disposed of, with directions for immediate communication to the Company Liquidator, Financial Creditor, and the Corporate Debtor.

This comprehensive analysis covers the key aspects of the judgment regarding the liquidation order issued for BIW Fabricators Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.