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2021 (10) TMI 11 - Tri - Insolvency and BankruptcySeeking liquidation of the Corporate Debtor - Section 33 (2) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - This Tribunal under the circumstances, in the circumstances taking into consideration the provisions of law, as well as on facts is hereby orders for liquidation of the corporate debtor 'M/s. Awsum Proteins Limited', and in the circumstances the corporate debtor stands Liquidated and the incidence of liquidation to follow, on and from the date of this order in terms of the provisions of IBC, 2016 and more particularly as given in Chapter - III of IBC, 2016 and also in terms of Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 along with the directions issued. The Corporate Debtor is ordered to be liquidated - moratorium shall cease to have effect - application allowed.
Issues: Application for liquidation of a corporate debtor under Section 33 (2) of the Insolvency and Bankruptcy Code, 2016.
Analysis: 1. The application was filed by the Resolution Professional for the order of liquidation of the Corporate Debtor, 'M/s. Awsum Proteins Limited' under Section 33 (2) of the Insolvency and Bankruptcy Code, 2016. 2. The Corporate Insolvency Resolution Process was initiated based on an application by an Operational Creditor due to default. The Adjudicating Authority admitted the application and appointed an Interim Resolution Professional for the Corporate Debtor. 3. The Interim Resolution Professional issued a Public Announcement inviting claims from creditors and constituted the Committee of Creditors (CoC) consisting of financial creditors. Claims were received, and meetings were held to discuss the financial situation of the Corporate Debtor. 4. The CoC, during the second meeting, voted in favor of liquidation due to the non-availability of assets, closure of operations for more than three years, and the infeasibility of continuing the Corporate Insolvency Resolution Process. 5. In the same meeting, the CoC proposed the name of a Liquidator and fixed the fee for the Liquidator. The Liquidator's appointment and fee were approved by a significant majority of the CoC. 6. The Tribunal, considering the provisions of the law and the facts presented, ordered the liquidation of the Corporate Debtor, 'M/s. Awsum Proteins Limited,' in accordance with Section 33 of the Insolvency and Bankruptcy Code, 2016. 7. The Tribunal directed the appointment of a specific Insolvency Professional as the Liquidator, who was required to issue a Public Announcement, communicate the order to relevant authorities, and proceed with the liquidation process as per the regulations. 8. The order also addressed the cessation of the Moratorium under Section 14 of the Insolvency and Bankruptcy Code, initiation of a fresh Moratorium under Section 33(5), discharge of officers, employees, and workmen of the Corporate Debtor, and submission of a Preliminary Report by the Liquidator within a specified timeframe. 9. The order was communicated to the Corporate Applicant/Corporate Debtor and the Liquidator for necessary actions, thereby disposing of the application filed in connection with the Corporate Insolvency Resolution Process. This detailed analysis covers the key aspects of the legal judgment regarding the application for the liquidation of the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016.
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