9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 738 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Section 33 (1) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - This Tribunal is of the view that as per the record and submissions made, we endeavors to obtain resolution of corporate debtor has failed and CoC in its commercial wisdom decided to liquidate the corporate debtor which does not require any interference. In present circumstances the CoC decision is appropriate. The corporate debtor Ajit Automotive Service Private Limited stands liquidated and the incidence of liquidation to follow, on and from the date of this order in terms of the provisions of 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 - application allowed.
Issues:
1. Application for liquidation of corporate debtor under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. 2. Replacement of Interim Resolution Professional (IRP) with Resolution Professional (RP). 3. Decision of Committee of Creditors (CoC) to initiate liquidation process due to lack of resolution plans. 4. Valuation of assets and approval for liquidation. 5. Appointment of RP as Liquidator and directions for the liquidation process. Issue 1: Application for liquidation of corporate debtor under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 The application was filed by the Resolution Professional seeking directions for the liquidation of the corporate debtor, Ajit Automotive Service Private Limited, under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. The CoC decided to replace the IRP with an RP, and after no expression of interest was received during the CIRP period, the CoC passed a resolution for liquidation under Section 33(2) of the Code. Issue 2: Replacement of Interim Resolution Professional (IRP) with Resolution Professional (RP) Following the initial admission of the application for Corporate Insolvency Resolution Process against the corporate debtor, the CoC decided to replace the IRP with Mr. Rohit Sehgal as the RP. This decision was made in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016. Issue 3: Decision of Committee of Creditors (CoC) to initiate liquidation process due to lack of resolution plans Despite efforts to invite Prospective Resolution Applicants through Expression of Interest rounds, no interest was received within the stipulated period. Consequently, the CoC, with the majority voting share, decided to initiate the liquidation process against the corporate debtor as a going concern. The decision was made in compliance with the relevant regulations, and the valuation reports indicated the fair value and liquidation value of the corporate debtor's assets. Issue 4: Valuation of assets and approval for liquidation Valuation reports obtained from registered valuers revealed the fair value and liquidation value of the corporate debtor's assets. The CoC, after due deliberation and in the absence of a resolution plan during the CIRP period, opted for liquidation as per the provisions of the Insolvency and Bankruptcy Code, 2016. The decision to liquidate the corporate debtor was deemed appropriate by the Tribunal, and the RP was appointed as the Liquidator to oversee the process. Issue 5: Appointment of RP as Liquidator and directions for the liquidation process The Tribunal ordered the corporate debtor, Ajit Automotive Service Private Limited, to be liquidated, and the RP was appointed as the Liquidator. Various directions were issued, including the issuance of a Public Announcement, communication with regulatory authorities, submission of reports, and initiation of the liquidation process in accordance with the relevant regulations. The order also addressed the cessation of the Moratorium under Section 14 of the Code and provided for necessary intimation to stakeholders. In conclusion, the Tribunal approved the application for liquidation and provided detailed directions for the commencement and management of the liquidation process in accordance with the Insolvency and Bankruptcy Code, 2016, and relevant regulations.
|
