2022 (5) TMI 1308 - Tri - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - Section 33(1) read with 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - Since no resolution plan has been received by this Adjudicating Authority before the expiry of the maximum insolvency resolution process period and furthermore, the CoC has decided to liquidate the Corporate Debtor, therefore, the Corporate Debtor has to be ordered for Liquidation. Application allowed.

Summary

Issues:
Liquidation order for Corporate Debtor under Insolvency and Bankruptcy Code, 2016.

Analysis:

Issue 1: Liquidation Application
The judgment pertains to an application filed under Section 33(1) read with 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking a liquidation order for the Corporate Debtor, S.K.P.J. Investment & Finance Pvt. Ltd. The applicant, a Resolution Professional, requested the Tribunal to pass an order of liquidation due to the failure of the Resolution Applicant to submit a resolution plan within the prescribed time limit.

Issue 2: CoC Meetings and Resolution Process
The Interim Resolution Professional (IRP) conducted three Committee of Creditors (CoC) meetings, where the Resolution Applicant, S.J. Services Pvt. Ltd., was confirmed. However, the Resolution Applicant later expressed disinterest in submitting a resolution plan, leading to the CoC considering liquidation during the 3rd meeting. The CoC approved the liquidation of the Corporate Debtor in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

Issue 3: Liquidation Order
As no resolution plan was received within the stipulated time frame and the CoC decided on liquidation, the Tribunal ordered the liquidation of the Corporate Debtor. The Tribunal appointed the Resolution Professional as the Liquidator, who would oversee the liquidation process as per the Code's provisions. The order included directions regarding legal proceedings, discharge of officers, cessation of powers of the Corporate Debtor's management, cooperation with the Liquidator, fee entitlement, and communication of the order to relevant authorities.

Conclusion:
The judgment culminated in the Tribunal granting the liquidation application, appointing the Resolution Professional as the Liquidator, and outlining the necessary steps and procedures to be followed during the liquidation process in accordance with the Insolvency and Bankruptcy Code, 2016.