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2022 (4) TMI 1037 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - sections 33(1)(A), 33(2) and 34(1) of the I B Code, 2016 - HELD THAT - Having regard to the resolutions adopted by the Fifth CoC, and by virtue of the fact that this Adjudicating Authority did not receive any Resolution Plan under Sub-Section (6) of Section 30, this Adjudicating Authority inclines to exercise powers conferred under Sub-Clauses (i), (ii) and (iii) of Clause (b) of Sub-Section (1) of Section 33 of the I B Code, 2016. This Adjudicating Authority hereby orders for liquidation of M/s. Bharani Commodities Pvt. Ltd., the Corporate Debtor herein, which shall be conducted in the manner as laid down in Chapter III of part II of the I B Code, 2016 - Application allowed.
Issues:
1. Liquidation order sought by Resolution Professional 2. Claims admission by operational creditors 3. Appointment of Liquidator and cessation of moratorium Issue 1: Liquidation order sought by Resolution Professional The Resolution Professional filed IA No. 710 of 2021 seeking a liquidation order against the Corporate Debtor under sections 33(1)(A), 33(2), and 34(1) of the I & B Code, 2016. The request included appointing Shri K.J. Vinod as the Liquidator for managing the liquidation process. The Tribunal, after considering the absence of any Resolution Plans and the resolutions passed by the Committee of Creditors (CoC), decided to order the liquidation of the Corporate Debtor as per Chapter III of the I & B Code, 2016. The appointed Liquidator was tasked with issuing a public announcement confirming the commencement of liquidation and ensuring the moratorium under Section 14 of the Code ceased to have effect from the liquidation order date. Issue 2: Claims admission by operational creditors Operational creditors filed IA No. 57 and IA No. 58 of 2022 in the same case, requesting the Resolution Professional to admit their claims against the Corporate Debtor and allow them to participate in the CoC meetings. The Tribunal noted the submissions made by the operational creditors but, due to the liquidation order passed for the Corporate Debtor, deemed these applications as infructuous, as the liquidation process would render their claims irrelevant. Issue 3: Appointment of Liquidator and cessation of moratorium The Tribunal appointed Shri K.J. Vinod as the Liquidator for the liquidation process of the Corporate Debtor, with specific responsibilities and powers outlined under various sections of the I & B Code, 2016, and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The Liquidator was directed to manage the affairs of the Corporate Debtor, including the sale of assets if necessary, and charge fees as specified by the Board. Additionally, the order mandated the cessation of all powers of the Board of Directors and other key personnel of the Corporate Debtor, vesting such powers in the appointed Liquidator. The order also required cooperation from the Corporate Debtor's personnel in assisting the Liquidator during the liquidation process. This comprehensive analysis of the judgment issued by the National Company Law Tribunal, Hyderabad Bench, highlights the key issues addressed in the case, including the liquidation order sought by the Resolution Professional, claims admission by operational creditors, and the appointment of a Liquidator with specific duties and powers for managing the liquidation process of the Corporate Debtor.
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