2021 (9) TMI 67 - Tri - Insolvency and Bankruptcy

Exclusion of 317 days from the date the CoC in their commercial wisdom has decided to liquidate the Corporate Debtor u/s 33 of the Code as well as on account of lockdown due to COVID-19 pandemic - HELD THAT - This is a case where no publication of Form G was made and the extended period of CIRP period has expired on 18/03/2021. Therefore, there is no alternative but to order the liquidation of the Corporate Debtor. The Corporate Debtor is ordered to be liquidated in terms of section 33(2) of the Code read with subsection (1) thereof - Application allowed.

Summary

Issues:
1. Exclusion of time period from CIRP due to COVID-19 lockdown and CoC's decision for liquidation
2. Application for liquidation of Corporate Debtor due to non-receipt of resolution plan

Analysis:
1. Exclusion of time period from CIRP due to COVID-19 lockdown and CoC's decision for liquidation:
- The RP filed an application (IA/329(KB)2021) seeking exclusion of 317 days from 24/03/2020 to 03/02/2021 due to the CoC's decision to liquidate the Corporate Debtor under section 33 of the Code.
- The CoC, in their commercial wisdom, decided for liquidation considering the lack of resolution possibilities.
- The RP submitted that due to the suspended Board of Directors' unavailability of necessary documents, valuations were stalled, leading to the decision not to publish EoI.
- The Tribunal, after hearing the RP, allowed the exclusion of the mentioned period, ending the CIRP period on 18/03/2021.

2. Application for liquidation of Corporate Debtor due to non-receipt of resolution plan:
- Another application (IA/309(KB)2021) was filed by the RP under section 33 of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor.
- The CoC did not receive any resolution plan, and the extended CIRP period expired on 18/03/2021, necessitating the liquidation order.
- The Tribunal ordered the liquidation of the Corporate Debtor and appointed a Liquidator as per the provisions of the Code.
- Various directions were issued, including the handover of documents to the Liquidator, initiation of the liquidation process, cessation of powers of the Board of Directors, and issuance of public notice for liquidation.
- The Liquidator was directed to file a copy of the order with the Registrar of Companies and manage the liquidation process with cooperation from the Corporate Debtor's personnel.

In conclusion, the Tribunal allowed the exclusion of the specified period from the CIRP due to COVID-19 and CoC's decision for liquidation, and subsequently ordered the liquidation of the Corporate Debtor based on non-receipt of any resolution plan. The detailed directions provided by the Tribunal ensure the orderly conduct of the liquidation process in accordance with the Insolvency and Bankruptcy Code, 2016.