2021 (10) TMI 539 - Tri - Insolvency and Bankruptcy

Seeking Liquidation of the Corporate Debtor - Section 33 (2) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - This Tribunal after taking into consideration the present facts, circumstances and the provisions of law, hereby order for liquidation of the corporate debtor and in the circumstances the corporate debtor stands Liquidated, and the incidence of liquidation is 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. The Liquidation order is allowed - application allowed.

Summary

Issues:
Liquidation order under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The judgment pertains to an application filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of the Corporate Debtor, 'Metro Management Services Private Limited'. The application was filed after the Adjudicating Authority admitted an application for Corporate Insolvency Resolution Process against the Corporate Debtor due to default by a Financial Creditor. The Interim Resolution Professional was appointed, and the necessary procedures under the Code were followed, including the issuance of a Public Announcement to invite claims from creditors.

During the Corporate Insolvency Resolution Process, it was noted that despite reminders, only one claim was received from a Financial Creditor. Subsequently, at the second meeting of the Committee of Creditors (CoC), it was decided not to continue the Corporate Insolvency Resolution Process due to the lack of business prospects for the Corporate Debtor. The CoC then passed a resolution under Section 33(2) to initiate the liquidation process of the Corporate Debtor.

The Tribunal, after considering the facts, circumstances, and relevant provisions of the law, ordered the liquidation of the Corporate Debtor. The Resolution Professional was appointed as the Liquidator, and directions were given for the necessary steps to be taken for the liquidation process, including issuing a Public Announcement, communicating the order to regulatory authorities, and submitting a Preliminary Report within the specified timeline. The order also addressed the cessation of the Moratorium under Section 14 of the Code and the initiation of a fresh Moratorium under Section 33(5).

Overall, the judgment provides a detailed analysis of the application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, outlining the procedural steps taken, the decision-making process of the CoC, and the directives issued by the Tribunal for the commencement and management of the liquidation process in accordance with the relevant regulations and provisions of the Code.