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2022 (4) TMI 204 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Section 33 of IBC, 2016 - HELD THAT - The mandate of 66% voting share under Section 33(2) of the IBC, 2016, stands satisfied - It is also seen from the records that the Applicant herein has accorded the written consent, Form AA to act as the Liquidator of the Corporate Debtor and further the Applicant has also placed on record the Authorization for Assignment (AFA) issued by the Insolvency Professional Agency of Institute of Cost Accountants of India. The liquidator is ordered to be liquidated - application allowed.
Issues:
Liquidation of Corporate Debtor under Section 33(1)(a) of IBC, 2016 Appointment of Resolution Professional as Liquidator Deposit of Liquidation Costs by CoC Fixing remuneration of Liquidator Authorization for Liquidation Investigation of Corporate Debtor's financial affairs Communication of liquidation order to relevant authorities Ceasing of Moratorium under Section 14 Commencement of fresh Moratorium under Section 33(5) Proceeding with liquidation process Submission of Preliminary report by Liquidator The judgment pertains to an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 seeking liquidation of the Corporate Debtor, Empee Power Company (India) Limited. The Resolution Professional requested the Tribunal to pass an order for liquidation, appoint the Resolution Professional as the Liquidator, direct the Committee of Creditors (CoC) to deposit liquidation costs, fix the remuneration of the Liquidator, and issue any other necessary orders in the interest of equity. The Corporate Debtor was admitted to the Corporate Insolvency Resolution Process, and subsequent CoC meetings resolved for the Resolution Professional to continue in their role. It was noted that the Corporate Debtor was not a going concern at the time of the Insolvency Resolution Process initiation. The Resolution Professional published an Expression of Interest (EOI) as per CoC resolutions, but no resolution plan was received, leading to the decision to place the Corporate Debtor under liquidation. The Tribunal observed that the CoC unanimously voted for liquidation, meeting the 66% voting share requirement under Section 33(2) of the IBC, 2016. The Resolution Professional provided written consent to act as the Liquidator, and the Tribunal appointed a specific individual as the Liquidator to oversee the liquidation process. The Liquidator was directed to strictly adhere to the provisions of the IBC, issue a public announcement of liquidation, investigate the Corporate Debtor's financial affairs for any irregularities, and communicate the liquidation order to relevant authorities. The order of Moratorium under Section 14 ceased to have effect, and a fresh Moratorium under Section 33(5) commenced. The Liquidator was instructed to proceed with the liquidation process as per the IBC guidelines and submit reports within specified timelines. The judgment provided detailed directions for the Liquidator, including tasks related to financial investigations, communication with regulatory authorities, and the submission of reports to the Tribunal. The Liquidator was mandated to follow the procedures outlined in Chapter III of the IBC, investigate pending Company Applications, and maintain communication with stakeholders involved in the liquidation process. Ultimately, the Tribunal allowed the application with the specified directions, ensuring a structured and compliant liquidation process for the Corporate Debtor.
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