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2021 (6) TMI 1018 - Tri - Insolvency and BankruptcyLiquidation of the Corporate Debtor - Section 33 r.w. Section 34 of the Insolvency Bankruptcy Code, 2016 - HELD THAT - An order of liquidation can be passed in the present case as no resolution has been received and COC has also resolved to do so. The COC has passed the resolution to liquidate the corporate debtor in compliance of section 39B 39C of IBBI (CIRP) Regulations, 2016. The sole member of COC has also resolved to contribute to the costs of liquidation. The name of the RP has been proposed by the applicant in the present application whose name has already been approved by COC to act as liquidator. Hence the proposed RP/applicant is appointed to act as a liquidator. Application allowed.
Issues:
Liquidation of Corporate Debtor under IBC, 2016. Analysis: The Interlocutory Application was filed by the Resolution Professional for the liquidation of the Corporate Debtor, M/s. Bansal Shipping Private Limited, under Section 33 read with Section 34 of the Insolvency & Bankruptcy Code, 2016 (IBC, 2016). The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) by the Authority, and the Committee of Creditors (COC) resolved to appoint the applicant as the Resolution Professional. Subsequently, the COC decided to initiate the liquidation process of the Corporate Debtor as a going concern due to the absence of assets other than Cash and Bank Balance. The Resolution Professional was proposed to act as the Liquidator, and the COC approved the estimated liquidation costs. The Tribunal, after considering the submissions and available material, held that an order of liquidation could be passed as no resolution had been received, and the COC had resolved to liquidate the Corporate Debtor in compliance with the relevant regulations. The Resolution Professional, whose name had been approved by the COC to act as the Liquidator, was appointed for the liquidation process. The Tribunal allowed the Interlocutory Application based on the facts and legal provisions. The Tribunal issued various directions in the final order, appointing the Resolution Professional as the Liquidator of the Corporate Debtor, directing the initiation and completion of the liquidation process as per the Code's provisions. The order declared the cessation of the moratorium, transferred powers from the Board of Directors to the Liquidator, and directed cooperation from the Corporate Debtor's personnel. The Liquidator was authorized to charge fees for conducting the liquidation proceedings and recover trade receivables and other credits. Additionally, the order restricted legal proceedings against the Corporate Debtor and instructed coordination with authorities during the liquidation process. In conclusion, the Tribunal allowed the Interlocutory Application, directing the Liquidator to proceed with the liquidation process in accordance with the Code's regulations and provisions. The order was to be uploaded on the Official Website and sent to relevant parties within specified timelines.
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