9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 147 - Tri - Insolvency and BankruptcyLiquidation of the Corporate Debtor - section 33(2) of Insolvency and Bankruptcy Code - HELD THAT - Section 33(2) of the Code enjoins the Adjudicating Authority to pass an order for liquidation of the Corporate Debtor where the resolution professional, at any time during the CIRP but before confirmation of the resolution plan, intimates the Adjudicating Authority of the decision of the CoC approved by not less than sixty-six percent of the voting share, to liquidate the Corporate Debtor. In the present case, the CoC has resolved by 100% voting share to liquidate the Corporate Debtor. The Corporate Debtor is ordered to be liquidated in terms of section 33(2) of the Code read with sub-section (1) thereof - Application allowed.
Issues:
Liquidation of Corporate Debtor sought by Resolution Professional based on rejection of Resolution Plan by Committee of Creditors (CoC). Analysis: The judgment pertains to an application filed by the Resolution Professional on behalf of the Committee of Creditors (CoC) seeking the liquidation of the Corporate Debtor, Sarnamoy Plastic Sack Manufacturing Private Limited. The application was made after the CoC rejected the Resolution Plan. The Corporate Insolvency Resolution Process (CIRP) was initiated earlier based on a petition by a financial creditor, Punjab National Bank, under section 7 of the Insolvency and Bankruptcy Code, 2016. The CoC was duly constituted, and the Resolution Professional was appointed after the receipt of only one Resolution Plan from Precission Polyplast Private Limited. The Resolution Plan was rejected by the CoC as the offered amount was below the liquidation value of the company. The judgment highlights that the CoC, with 100% voting shares, passed a resolution for the liquidation of the Corporate Debtor under section 33(2) of the Code. The Resolution Professional, who also agreed to act as the Liquidator, sought various reliefs including allowing the sale of the Corporate Debtor as a going concern and appointment of Mr. Sanjeev Jhunjhunwala as the Liquidator. The Tribunal allowed the prayers for liquidation of the Corporate Debtor but did not grant the other reliefs at that stage. Mr. Sanjeev Jhunjhunwala was appointed as the Liquidator, subject to possessing a valid Authorization for Assignment (AFA) issued by the Insolvency Professional Agency (IPA). Further directives in the judgment include initiating the liquidation process as per the Code and regulations, issuing a public notice of liquidation, transferring powers to the Liquidator from the Board of Directors, and directing cooperation from the Corporate Debtor's personnel. Legal proceedings against the Corporate Debtor were restricted during the liquidation process, and the liquidation order served as a discharge notice to officers, employees, and workmen of the Corporate Debtor. The Liquidator was instructed to file a copy of the order with the Registrar of Companies, and the Registry was directed to inform all concerned parties. The judgment concluded by disposing of the application and setting a date for progress reporting.
|
