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2022 (6) TMI 1136 - Tri - Insolvency and BankruptcySeeking initiation of Liquidation Process of the Corporate Debtor - seeking appointment of Resolution Professional as the Liquidator of the Corporate Debtor - Section 33(1)(a) of the I B Code, 2016 - HELD THAT - On 18.05.2022, when the matter came up for orders, the learned Resolution Professional submitted that the CoC held on 13.05.2022 noted the failure of the applicants in submitting a joint resolution plan. In the said meeting, the Resolution Applicants appeared and sought time till 16.05.2022 for submitting their joint Resolution Plan as committed before this Tribunal. Considering their request, the 25th meeting of CoC directed them to submit their Plan latest by 16.05.2022 and decided to adjourn the meeting further to 16.05.2022 for considering the progress of submission of Resolution Plan. On 16.05.2022, both the applicants intimated their inability to submit a joint Resolution Plan by email and confirmed this matter by appearing before the adjourned CoC held on 16. 05.2022. It is clear that the only option left with this Tribunal to order the liquidation of the Corporate Debtor. Hence, this Tribunal proceeded to order the liquidation of the Corporate Debtor. M/s. Trivandrum International Health Services Limited is hereby put under liquidation with immediate effect under Section 33 (1) of I B Code, 2016 - Application allowed.
Issues Involved:
1. Initiation of Liquidation Process. 2. Evaluation and Approval of Resolution Plans. 3. Failure to Submit Performance Guarantee. 4. Extension and Finalization of CIRP Period. 5. Liquidation Order and Appointment of Liquidator. Detailed Analysis: 1. Initiation of Liquidation Process: The application was filed under Section 33(1)(a) of the I&B Code, 2016, by the Resolution Professional for the initiation of the Liquidation Process of the Corporate Debtor and to appoint the Resolution Professional as the Liquidator of the Corporate Debtor. The Tribunal had earlier admitted the application filed by the Financial Creditor and initiated the Corporate Insolvency Resolution Process (CIRP) against the respondent, appointing the Applicant as the Interim Resolution Professional. 2. Evaluation and Approval of Resolution Plans: The Resolution Professional invited Expressions of Interest (EOI) and received four Resolution Plans. The CoC held several meetings to consider these plans, ultimately approving the plan submitted by Dr. C. Bharath Chandran with 100% voting rights. However, the approved plan was conditional, requiring the submission of a Performance Guarantee. The CoC also resolved to liquidate the Corporate Debtor in case of failure or non-approval of the Resolution Plan by the Adjudicating Authority. 3. Failure to Submit Performance Guarantee: Dr. C. Bharath Chandran failed to submit the required Performance Guarantee within the stipulated time. Consequently, the CoC authorized the Resolution Professional to proceed with the liquidation process. Despite receiving a request for an extension and substitution of co-applicants, the CoC decided to forfeit the performance guarantee and proceed with liquidation due to the expiration of the mandatory timeline of 330 days for completing the resolution process. 4. Extension and Finalization of CIRP Period: The Tribunal granted further time to explore the possibility of running the Hospital as a going concern and allowed the submission of new Resolution Plans by Dr. C. Bharath Chandran and M/s. Sabine Hospital and Research Centre Private Limited. Despite multiple extensions and meetings, none of the Resolution Plans received the required 66% voting consent. The Tribunal invoked the second proviso to Regulation 39(3B) of the IBBI (Liquidation Process) Regulations, 2016, and ordered to place the highest-voted Resolution Plan again before the CoC for voting. However, the plan still failed to obtain the necessary votes. 5. Liquidation Order and Appointment of Liquidator: Given the failure to approve a Resolution Plan within the permissible CIRP period, the Tribunal ordered the liquidation of the Corporate Debtor under Section 33(1) of the I&B Code, 2016. The Tribunal appointed Shri. Raju Palanilkunnathil Kesavan as the Liquidator and directed him to adhere to the relevant sections of the IBC, 2016, and the IBBI (Liquidation Process) Regulations, 2016. The Liquidator was instructed to explore the possibility of selling the Corporate Debtor as a going concern and to initiate the liquidation process as per the prescribed regulations. Order: 1. M/s. Trivandrum International Health Services Limited is put under liquidation with immediate effect. 2. Shri. Raju Palanilkunnathil Kesavan is appointed as the Liquidator. 3. The Liquidator is directed to adhere to Sections 33(1)(ii) & (iii) and discharge his duties as specified under Sections 35 to 41 of IBC, 2016. 4. The Liquidator shall initiate the liquidation process as per Chapter-II of the Code and the IBBI (Liquidation Process) Regulations, 2016. 5. Public Notice shall be issued in widely circulated newspapers. 6. All powers of the Board of Directors and key managerial persons of the Corporate Debtor shall cease to exist and vest with the Liquidator. 7. The Suspended Directors and personnel of the Corporate Debtor are directed to extend all cooperation to the Liquidator. 8. No suit or other legal proceeding shall be instituted by or against the Corporate Debtor, except with the prior approval of the Adjudicating Authority. 9. The liquidation order shall be deemed as a notice of discharge to the officers, employees, and workmen of the Corporate Debtor. 10. The Deputy Registrar/Assistant Registrar shall forward a copy of this Order to the Liquidator and the Registrar of Companies, Kerala. 11. The fee payable to the Liquidator shall comply with Regulation 4 of IBBI (Liquidation Process) Regulations, 2016. The application for liquidation was allowed on June 2, 2022.
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