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2021 (10) TMI 1037 - Tri - Insolvency and BankruptcyLiquidation of the Corporate Debtor - Section 33(1) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - This Tribunal is of the view that the endeavours to obtain resolution of corporate debtor has failed and CoC in its commercial wisdom decided to liquidate the corporate debtor which does not require any interference, thus in present circumstances the CoC decision is appropriate. The corporate debtor KK Milk Fresh India Ltd., 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 - Application allowed.
Issues: Application for liquidation of Corporate Debtor under Section 33(1) of the Insolvency and Bankruptcy Code, 2016.
Detailed Analysis: 1. The Resolution Professional (RP) filed an application under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the Corporate Debtor, KK Milk Fresh India Ltd., and the appointment of a Liquidator. 2. The application was admitted for initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of IBC, 2016, with Mr. Swami Deen Gupta appointed as the Interim Resolution Professional. 3. Despite efforts, the necessary information about the Corporate Debtor was not available due to non-cooperation from ex-directors, leading to the replacement of the IRP with a new RP, Mr. Chanchal Dua, approved by the Tribunal. 4. The RP invited Expressions of Interest (EOI) for submission of Resolution Plans, with multiple meetings held to discuss the process, including the valuation of assets and the submission deadline for Resolution Plans. 5. The RP informed the CoC that no Resolution Plans were received within the stipulated timelines, prompting discussions in the CoC meetings regarding the liquidation of the Corporate Debtor due to the expiry of the CIRP period without any viable alternatives. 6. The CoC unanimously advised the RP to file an application for liquidation of the Corporate Debtor, as no Resolution Plan was received, leading to the decision to appoint the RP as the Liquidator in accordance with the provisions of the IBC. 7. The Tribunal acknowledged the CoC's decision to liquidate the Corporate Debtor as appropriate, considering the failed attempts to obtain a resolution, and ordered the liquidation of KK Milk Fresh India Ltd. with the RP appointed as the Liquidator. 8. Directions were given for the Liquidator to issue a public announcement, proceed with the liquidation process, submit a Preliminary Report, and notify the concerned parties about the discharge of officers, employees, and workmen of the Corporate Debtor. 9. The order also specified the cessation of the Moratorium under Section 14 of IBC, 2016, and the commencement of a fresh Moratorium under Section 33(5) of the Code, with copies of the order to be communicated to relevant stakeholders and authorities for necessary actions and records update. This judgment reflects a comprehensive analysis of the application for liquidation of a Corporate Debtor under the Insolvency and Bankruptcy Code, detailing the procedural steps, CoC decisions, RP actions, and Tribunal's order for liquidation and appointment of a Liquidator.
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