2022 (5) TMI 916 - Tri - Insolvency and Bankruptcy

Liquidation of the Corporate Debtor - Section 33(2) of I B Code, 2016 - HELD THAT - The Applicant/RP has complied Compliance Certificate in Form-H with all the mandatory requirements of CIRP of the Corporate Debtor as provided under the I B Code, 2016 and its allied Regulations, 2016. The Corporate Debtor is ordered to be liquidated - application allowed.

Summary

Issues: Application for Liquidation of Corporate Debtor under the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:
1. Initiation of CIRP and Appointment of IRP: The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated, and Mrs. Vijayakumari Natarajan was appointed as the Interim Resolution Professional (IRP) after the order was received by the IRP on 08.03.2021. The public announcement for creditors' claims was made on 11.03.2021.

2. Constitution of Committee of Creditors (CoC) and Appointment of Resolution Professional: The Committee of Creditors was constituted on 31.03.2021, and the applicant was appointed as the Resolution Professional in the second CoC meeting held on 16.04.2021, which was approved by the Tribunal in an order dated 02.06.2021.

3. Exclusion of Lockdown Periods and Extensions: Various CoC meetings resolved to exclude the COVID-19 lockdown periods from the CIRP computation and extend the CIRP period accordingly. Applications were filed before the Tribunal for exclusions and extensions based on CoC resolutions.

4. Expression of Interest and Attempts for Revival: The Resolution Professional (RP) made public announcements for Expression of Interest (EoI) twice, but no interests were received. Efforts were made to explore the possibility of reviving the Corporate Debtor without success.

5. Request for Withdrawal of CIRP: The suspended director of the Corporate Debtor requested withdrawal of CIRP under Section 12A of the IBC, proposing certain terms for payments. However, the CoC deemed the proposed commercial terms unacceptable.

6. Resolution for Liquidation: The 8th CoC Meeting resolved to liquidate the Corporate Debtor as no resolution plan was received within the stipulated period. The resolution was approved by the CoC members, leading to the application for liquidation being put to e-voting and subsequently approved.

7. Appointment of Liquidator: The RP consented to act as the Liquidator, and the CoC resolved to appoint the RP as the Liquidator of the Corporate Debtor. The Liquidator was directed to comply with all provisions of the IBC, investigate financial affairs, issue public announcements, and proceed with the liquidation process as per the regulations.

8. Directions to the Liquidator: The Tribunal issued specific directions to the Liquidator regarding compliance with IBC provisions, investigation of financial affairs, communication with regulatory authorities, submission of reports, and initiation of the liquidation process as per the relevant regulations.

9. Conclusion: The Tribunal allowed the application for the liquidation of the Corporate Debtor, appointing the RP as the Liquidator and directing the commencement of the liquidation process in accordance with the IBC and related regulations.

This comprehensive analysis covers the key aspects of the judgment regarding the application for the liquidation of the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016.