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2022 (5) TMI 811 - Tri - Insolvency and BankruptcySeeking liquidation of the Corporate Debtor - CIRP period has expired and no resolution plan was approved by the Committee of Creditors - 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 corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors approved by not less than sixty-six percent of voting share to liquidate the corporate debtor The Corporate Debtor is ordered to be liquidated - application allowed.
Issues involved:
Liquidation of Corporate Debtor SKP Steel Industries Private Limited due to the expiration of the CIRP period without an approved resolution plan. Analysis: 1. The application filed by the Resolution Professional with the approval of the Committee of Creditors (CoC) sought liquidation of the Corporate Debtor as the CIRP period had expired without an approved resolution plan. The order directed the appointment of a Liquidator to the Corporate Debtor. 2. The Adjudicating Authority had earlier directed the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and appointed an Interim Resolution Professional (IRP). The CoC later replaced the IRP with the Applicant as the Resolution Professional, which was confirmed by the Tribunal. 3. The Resolution Professional followed the required procedures under the Insolvency and Bankruptcy Code, including public announcements, invitation of Expression of Interests (EoIs), and evaluation of received Resolution Plans for compliance with statutory provisions. 4. The CoC, after reviewing the resolution plans, found the offered resolution amounts unsatisfactory and approved the liquidation of the Corporate Debtor. The CoC recommended exploring the sale of the Corporate Debtor as a going concern and fixed the fee payable to the Liquidator. 5. The Tribunal, in accordance with Section 33(2) of the Code, ordered the liquidation of the Corporate Debtor and appointed the Resolution Professional as the Liquidator. The Liquidator was directed to initiate the liquidation process as per the relevant regulations. 6. The order specified the cessation of powers of the Board of Directors and key managerial persons, which would now vest in the Liquidator. It also directed the personnel of the Corporate Debtor to cooperate with the Liquidator during the liquidation process. 7. The order further outlined the restrictions on legal proceedings against the Corporate Debtor once the liquidation process commenced, except with the approval of the Adjudicating Authority. It also clarified the notice of discharge to the officers, employees, and workmen of the Corporate Debtor. 8. The Liquidator was directed to file a copy of the order with the Registrar of Companies and ensure compliance with all necessary formalities. The Registry was instructed to inform all parties and issue certified copies of the order upon request.
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