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2022 (4) TMI 1301 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - section 33(2) of the Insolvency Bankruptcy Code, 2016 - HELD THAT - In the 15th meeting of the CoC, in absence of any resolution plan, it was resolved by the members of CoC that as there are no possible ways for revival of corporate debtor. Therefore, the CoC with 100% voting share recommended for liquidation of the Corporate Debtor and to appoint Mr. the present RP Mr. Shravan Kumar Vishnoi as liquidator. Liquidation of the Corporate Debtor is ordered - application allowed.
Issues: Application for liquidation of Corporate Debtor
Analysis: 1. Background: The application was filed by the Resolution Professional (RP) upon the instructions of the Committee of Creditors (CoC) seeking liquidation of the Corporate Debtor, Savaria Roller Flour Mills Private Limited, as no resolution plan was received. 2. Initiation of CIRP: The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on a petition filed by a Financial Creditor under section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Shravan Kumar Vishnoi was appointed as the Interim Resolution Professional (IRP) and later confirmed as the RP by the Adjudicating Authority. 3. CoC Decisions: Despite efforts by the RP, there was no cooperation from the suspended board of Directors, hindering the CIRP progress. The CoC decided, with 100% voting share, that no resolution plan was feasible for the revival of the Corporate Debtor. Consequently, the CoC recommended the liquidation of the Corporate Debtor and appointed Mr. Shravan Kumar Vishnoi as the liquidator. 4. Application for Liquidation: The IRP filed the application for liquidation under section 33(1) of the Code, seeking the appointment of the applicant as the liquidator, who had provided consent to act as the liquidator with a valid Authorization for Assignment. 5. Order by the Bench: The Tribunal allowed the application for liquidation, ordering the liquidation of the Corporate Debtor in accordance with section 33(1) of the Code. Mr. Shravan Kumar Vishnoi was appointed as the liquidator. The liquidator was directed to initiate the liquidation process as per the relevant regulations. 6. Concluding Directions: The order specified that all powers of the Board of Directors and key managerial persons would cease to exist, vesting in the Liquidator. The personnel of the Corporate Debtor were instructed to cooperate with the Liquidator. Legal proceedings against the Corporate Debtor were restricted during the liquidation process, except with the approval of the Adjudicating Authority. The liquidation order served as a discharge notice to officers, employees, and workmen of the Corporate Debtor. The Liquidator was directed to file a copy of the order with the Registrar of Companies. This detailed analysis covers the application for liquidation of the Corporate Debtor, outlining the background, CoC decisions, application details, the Tribunal's order, and concluding directions for the liquidation process.
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