2021 (11) TMI 605 - Tri - Insolvency and Bankruptcy

Seeking liquidation of the Corporate Debtor - no resolution plan was received - Section 33 of I B Code - HELD THAT - Section 33(2) of the Code enjoins the Adjudicating Authority to pass an order for liquidation of the Corporate Debtor where the resolution professional, at any time during the CIRP but before confirmation of the resolution plan, intimates the Adjudicating Authority of the decision of the CoC approved by not less than sixty-six percent of the voting share, to liquidate the Corporate Debtor. In the present case, the CoC has resolved by 100% voting share to liquidate the Corporate Debtor. The Corporate Debtor is ordered to be liquidated in terms of section 33(2) of the Code read with sub-section (1) thereof - Application allowed.

Issues:
Liquidation of Corporate Debtor V.R. Infralogistics Private Limited

Detailed Analysis:

1. Background and Application for Liquidation:
The Resolution Professional filed an application on behalf of the Committee of Creditors (CoC) seeking liquidation of the Corporate Debtor, V.R. Infralogistics Private Limited, as no resolution plan was received. The Corporate Insolvency Resolution Process (CIRP) was initiated earlier based on a petition under section 9 of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional was appointed as the RP after the IRP, and necessary public announcements were made as per the requirements of the Code.

2. Decision of Committee of Creditors (CoC):
The CoC, in its meetings, decided that since no resolution plan was available, the RP should file an application for liquidation under section 33(1) of the Code. Subsequently, the CoC passed a resolution with 100% voting shares in favor of liquidating the Corporate Debtor under section 33(2) of the Code.

3. Order for Liquidation:
The Adjudicating Authority, considering the CoC's decision and the provisions of the Code, ordered the liquidation of the Corporate Debtor. The Resolution Professional, Mr. Shyamal Kumar Bhattacharjee, was appointed as the Liquidator to carry out the liquidation process in accordance with the Code and relevant regulations.

4. Key Directions in the Order:
The order outlined various key directions, including the initiation of the liquidation process, issuance of public notice, transfer of powers to the Liquidator from the Board of Directors, and cooperation required from the Corporate Debtor's personnel. It also specified restrictions on legal proceedings against the Corporate Debtor once the liquidation process commences.

5. Compliance and Disposal of Application:
The order directed the Liquidator to file a copy of the order with the Registrar of Companies and ensured that all parties were informed promptly. The application for liquidation was disposed of as per the directions provided in the order.

6. Further Reporting and Compliance:
The order concluded by listing the main case for reporting progress and directed the issuance of a certified copy upon completion of formalities. It also highlighted the need for compliance with the order and subsequent reporting requirements.

This detailed analysis of the judgment highlights the procedural history, decision-making process of the CoC, the legal basis for ordering liquidation, key directions in the order, compliance requirements, and future reporting obligations as per the Insolvency and Bankruptcy Code.

← Previous Next →