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2021 (8) TMI 1153 - Tri - Companies LawSeeking to order for liquidation of the Corporate Debtor - Section 33(2) r/w Section 60 of the I B Code, 2016 - HELD THAT - The Resolution Professional and the COC of the Corporate Debtor, have made their best efforts to find a suitable Resolution Plan to revive the business of the Corporate Debtor. However, in the absence of any Resolution Plan received, there is no other alternative for the COC except to seek to order to liquidate the Corporate Debtor as per the provisions of the Code. The Resolution to initiate liquidation was also approved by the COC in its 7th meeting held on 24th May 2021, with requisite majority and the instant Application is filed strictly in accordance with law. M/s. Antal Infotech Private Limited, Corporate Debtor is ordered to be liquidated in the manner as laid down in Chapter III of Part II of Code, R/w IBBI (Liquidation process) Regulations, 2016 - the scheme is approved - application allowed.
Issues: Liquidation of Corporate Debtor
Issue 1: Liquidation Application The Resolution Professional (RP) filed an application seeking liquidation of the Corporate Debtor under Section 33(2) r/w Section 60 of the I & B Code, 2016, due to the failure to receive any viable resolution plan despite multiple efforts to revive the business. Analysis: The RP and Committee of Creditors (COC) extensively tried to find a suitable resolution plan to revive the Corporate Debtor. However, with no viable plan forthcoming, the COC, in its 7th meeting, approved the liquidation proposal with the requisite majority. The RP, with the consent of 71% of the voting share of the COC, sought approval for liquidation and his appointment as the Liquidator. The application was filed in strict accordance with the law, and the RP was deemed eligible to act as the Liquidator, leading to the decision to initiate liquidation. Issue 2: Reasons for Liquidation The decision for liquidation was based on various factors, including the Corporate Debtor not being a going concern, lack of interest from investors, substantial liabilities compared to assets, unsuccessful attempts to revive the business, and the absence of a viable resolution plan despite repeated efforts. Analysis: The COC, after detailed deliberations in several meetings, unanimously agreed that liquidation was the most viable option as the Corporate Debtor could not be revived effectively. Efforts to attract investors and explore repayment plans were made, but no concrete resolution emerged. The COC prioritized debt realization and recovery, leading to the decision to proceed with liquidation. Issue 3: Adjudicating Authority's Decision The Adjudicating Authority, exercising powers under Section 33(2) of the IBC, 2016, disposed of the application by ordering the liquidation of the Corporate Debtor in accordance with the provisions of the Code and IBBI regulations. The RP was appointed as the Liquidator, with directions to follow due process and complete the liquidation process expediently. Analysis: The Adjudicating Authority, considering the facts and circumstances presented, approved the liquidation of the Corporate Debtor as proposed by the COC. The Authority appointed the RP as the Liquidator and outlined specific directives for the liquidation process, emphasizing adherence to legal provisions and timely completion. The decision aimed at efficient debt realization and dissolution of the Corporate Debtor in accordance with the law. In conclusion, the judgment highlighted the exhaustive efforts made to revive the Corporate Debtor, the reasons necessitating liquidation, and the detailed decision of the Adjudicating Authority to initiate and oversee the liquidation process.
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