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2022 (5) TMI 758 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Section 33(2) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The RP is approaching this Tribunal for passing an order of Liquidation of the Corporate Debtor as referred to in section 33(1) of IBC, 2016, as no resolution plan was received by the Resolution Professional under section 30 of the Code. Hence there is no alternative to save the CD, but to go for Liquidation. The RP Mr. Sharavan Kumar Vishnoi who has filed the present Liquidation Application has annexed the consent form of Mr. Debashish Nanda to act as a Liquidator, for which this Bench is of the considered view that, it is implied that Mr. Shravan Kumar Vishnoi has withdrawn his consent to act as RP as well as Liquidator in the present matter. Therefore, this adjudicating authority in light of Section 34(1) r/w section 34(4)(c) of IBC, 2016, in absence of any written consent submitted by the Mr. Shravan Kumar Vishnoi (RP), in the prescribed form to appoint him as the Liquidator, hereby decided to appoint Mr. Debashish Nanda as the Liquidator. The present application u/s. 33(2) of IBC stands allowed and liquidation of the corporate debtor, namely M/s. RS Ingot and Billet Private Limited in the manner as laid down in the Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016 and in accordance with the relevant Rules and Regulations, is hereby ordered.
Issues:
1. Application for issuance of directions for liquidation to Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. 2. Extension of the Corporate Insolvency Resolution Process (CIRP) timeline due to COVID-19 pandemic. 3. Rejection of the Resolution Plan by the Committee of Creditors (CoC) leading to liquidation of the Corporate Debtor. 4. Replacement of the Resolution Professional and appointment of a new Liquidator. 5. Approval for filing a fresh application for liquidation. 6. Appointment of the Liquidator and directions for the liquidation process. Analysis: 1. The Resolution Professional filed an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the Corporate Debtor, M/s. RS Ingot and Billet Private Limited. The CoC, after multiple meetings and discussions, rejected the sole received Resolution Plan, leading to the decision to proceed with liquidation. 2. Due to the COVID-19 pandemic and subsequent nationwide lockdown, an extension of the CIRP timeline was requested and granted by the Principal Bench, New Delhi, extending the CIRP period from 26.01.2020 to 25.04.2020. The Regulation 40C was inserted to exclude the lockdown period from the CIRP timeline for activities that could not be completed. 3. The CoC, after e-voting, unanimously rejected the Resolution Plan with 100% vote share, prompting the decision to move towards liquidation under the provisions of Section 33 of the IBC, 2016. The Resolution Professional was authorized to file the liquidation application. 4. Subsequently, a new Liquidator, Mr. Debashish Nanda, was appointed to replace the existing Resolution Professional, following a decision made in the 11th CoC meeting. The Resolution Professional's consent to act as the Liquidator was withdrawn, leading to the appointment of Mr. Debashish Nanda as the Liquidator. 5. The Resolution Professional approached the Tribunal for an order of liquidation as no viable resolution plan was received, necessitating the liquidation of the Corporate Debtor. The application under Section 33(2) of the IBC was allowed, and liquidation was ordered with specific directions for the process. 6. The Tribunal ordered the appointment of Mr. Debashish Nanda as the Liquidator, directed communication to relevant authorities, ceased the existing moratorium, and initiated a fresh moratorium under Section 33(5) of the IBC. The Liquidator was instructed to proceed with the liquidation process, investigate financial affairs, dispose of pending applications, and submit a Preliminary Report within seventy-five days from the liquidation commencement date. This comprehensive analysis covers the key issues and detailed proceedings leading to the final order for the liquidation of the Corporate Debtor.
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