2022 (6) TMI 47 - Tri - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - section 33(2) of IBC read with sub-section (1) thereof - HELD THAT - This is a case where no Resolution Plan was received and the 180 days CIRP period will be expiring on 16/05/2022. Therefore, there is no alternative but to order liquidation of the Corporate Debtor. Application allowed.

Summary

Issues Involved:
1. Permission to file reply affidavit in IA(IBC)/191(KB) 2022
2. Liquidation of Corporate Debtor Dulichand Auto Sales Private Limited in IA(IBC)/384(KB) 2022

Analysis:

Issue 1: Permission to file reply affidavit in IA(IBC)/191(KB) 2022
The Tribunal allowed the counsel for respondent No. 1, a suspended member of the Board of Directors, to file a reply affidavit within two weeks with an advance copy to the RP. The matter was listed for further proceedings on 21/06/2022.

Issue 2: Liquidation of Corporate Debtor Dulichand Auto Sales Private Limited in IA(IBC)/384(KB) 2022
(a) The RP filed an application seeking liquidation of the Corporate Debtor due to the absence of any Resolution Plan received, and the CoC approved liquidation by 93% voting share.
(b) The Adjudicating Authority had earlier directed the initiation of CIRP against the Corporate Debtor and appointed the RP as the IRP.
(c) Various CoC meetings were held, and the RP identified avoidable transactions under sections 43, 45, and 66 of the Code. Despite limited interest from prospective resolution applicants, no viable Resolution Plan was received.
(d) With the 180-day CIRP period expiring, the CoC decided by 93% voting share to proceed with the liquidation of the Corporate Debtor.
(e) The RP expressed willingness to act as the Liquidator of the Corporate Debtor.
(f) After considering submissions, the Tribunal ordered the liquidation of the Corporate Debtor as no Resolution Plan was forthcoming within the stipulated period.
(g) The Tribunal appointed the RP as the Liquidator and directed the initiation of the liquidation process as per the relevant regulations.
(h) Various directives were issued, including the cessation of powers of the Board of Directors in favor of the Liquidator, cooperation from the Corporate Debtor's personnel, and restrictions on legal proceedings against the Corporate Debtor during liquidation.
(i) The liquidation order was deemed a notice of discharge to certain parties, and formalities were outlined for filing the order with the Registrar of Companies.
(j) Pending matters were scheduled for future hearings, and copies of the order were to be sent to relevant authorities and parties for information and compliance.

This detailed analysis covers the permission granted for filing a reply affidavit and the comprehensive process leading to the liquidation of the Corporate Debtor Dulichand Auto Sales Private Limited as per the Tribunal's order in IA(IBC)/384(KB) 2022.