9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 208 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Section 33(1) of the Insolvency and Bankruptcy Code, 2016 - time limitation - HELD THAT - In the present case, the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted on 03.09.2019 and the present application is filed by the Resolution Professional on 11.12.2020. The period of 180 days would be completed on 01.03.2020. As per order dated 25.02.2020 (Annexure-12), this Hon'ble Adjudicating Authority has allowed the CIRP to be extended by a period of 90 days w.e.f. 01.03.2020, but as per Notification No. IBBI/2020-21/GN/REG059 dated 20.04.2020, the period of Lockdown is excluded for the purpose of calculating the timelines in CIR Process. Hence, after excluding the lockdown period w.e.f. 23.03.2020 to 31.07.2020, the CIRP was expired on 07.10.2020 and the present application is filed on 11.12.2020. Assessment of Sale as a going concern (Regulation 39C of CIRP Regulations, 2016) - HELD THAT - The CoC has not made any recommendation regarding sale of the corporate debtor as a going concern. Therefore, the Liquidator is directed to refer to Regulation 32A of the IBBI (Liquidation Process) Regulation, 2016 and take necessary action. In view of the satisfaction of the conditions provided under Section 33(1) of the Code, the corporate debtor Lakshmi Energy Foods Limited is directed to be liquidated in the manner as laid down in Chapter III of the Code - Application admitted - moratorium declared.
Issues:
1. Liquidation order under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. Analysis: The case involved IA No. 949/2020 filed by the Resolution Professional of a Corporate Debtor seeking a liquidation order under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor, and despite efforts to solicit resolution plans, only one plan was received, which was ultimately rejected by the Committee of Creditors (CoC) during the voting process. As no alternative resolution plan was forthcoming within the specified time frame, the Resolution Professional sought a liquidation order. The Tribunal referred to the provisions of Section 33(1)(a) of the Code, which mandates passing an order of liquidation if no resolution plan is received within the stipulated period or if the submitted plan is rejected for non-compliance. The Tribunal noted the timeline of the case, considering extensions granted due to the COVID-19 lockdown period, and determined that the application for liquidation was filed within the permissible time frame. Regarding the appointment of a Liquidator, the Tribunal appointed the Resolution Professional as the Liquidator after verifying the necessary consents and credentials. The Tribunal also highlighted the relevant regulations under the CIRP Regulations, 2016, such as Regulation 39B, 39C, and 39D, addressing liquidation costs, sale of assets as a going concern, and fees of the Liquidator, respectively. Furthermore, the Tribunal directed the Liquidator to take actions related to pending applications, including seeking cooperation from Directors and assistance from local administration. The Tribunal emphasized compliance with various provisions and regulations governing the liquidation process, ensuring that all stakeholders are duly informed and involved in the proceedings. In conclusion, the Tribunal disposed of IA No. 949/2020, ordering the liquidation of the Corporate Debtor in accordance with the provisions of the Insolvency and Bankruptcy Code. The Tribunal issued specific directions concerning legal proceedings, transfer of powers to the Liquidator, stakeholder cooperation, and the publication of public announcements as required by the regulations. The detailed analysis of the judgment reflects a comprehensive review of the case, considering legal provisions, timelines, regulatory requirements, and the specific circumstances leading to the liquidation order under Section 33(1) of the Insolvency and Bankruptcy Code, 2016.
|
