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2022 (6) TMI 1182 - Tri - Insolvency and BankruptcySeeking Liquidation of Corporate Debtor - seeking appointment of Liquidator of the Corporate Debtor - HELD THAT - Since this Adjudicating Authority did not receive any Resolution Plan under Sub-Section (6) of Section 30 of the I B Code, 2016, and this Adjudicating Authority deems it proper to allow the Application. This Adjudicating Authority hereby order for Liquidation of M/s. PVK Engineers Private Limited, which shall be conducted in the manner as laid down in Chapter III of part II of the I B Code, 2016 - Application allowed.
Issues:
1. Application for liquidation and appointment of liquidator under IBC. 2. COC decision for liquidation based on lack of response to EOI. 3. Approval of liquidation and appointment of liquidator by the Adjudicating Authority. Issue 1: Application for liquidation and appointment of liquidator under IBC The Resolution Professional (RP) filed an application seeking to liquidate the Corporate Debtor under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 (IBC). The application also requested the appointment of Mrs. Mummaneni Vazra Laxmi as the Liquidator of the Corporate Debtor. The Adjudicating Authority admitted the Company Petition and initiated the Corporate Insolvency Resolution Process (CIRP) by appointing Mrs. Mummaneni Vazra Laxmi as the Resolution Professional. The RP took various steps to complete the CIRP process, including issuing Expression of Interest (EOI) with no response received. The COC decided to liquidate the Corporate Debtor due to the lack of EOI or Resolution Plan within the prescribed timelines. Issue 2: COC decision for liquidation based on lack of response to EOI During the 4th COC Meeting, it was decided to liquidate the Corporate Debtor as there were no bids received for the EOI. The COC, with 100% voting, passed resolutions in accordance with IBBI Regulations, approving the liquidation and directing the RP to file the necessary application before the Adjudicating Authority. The COC determined that the Liquidation Value of the Financial Assets was 'Nil' and decided against issuing a second EOI. The COC also approved the appointment of Mrs. Mummaneni Vazra Laxmi as the Liquidator and fixed her fee as per the regulations. Issue 3: Approval of liquidation and appointment of liquidator by the Adjudicating Authority After considering the facts presented by the RP, the Adjudicating Authority, under the powers conferred by Section 33 of the IBC, ordered the liquidation of the Corporate Debtor. The Authority appointed Mrs. Mummaneni Vazra Laxmi as the Liquidator, who consented to act in that capacity. The order specified the cessation of moratorium, restrictions on legal proceedings, transfer of powers to the Liquidator, and the responsibilities of the Liquidator during the liquidation process. The Liquidator was directed to comply with regulations and notify relevant parties about the liquidation process. This judgment highlights the process of liquidation under the IBC, involving the RP's application, COC decisions, and the final approval by the Adjudicating Authority for liquidation and appointment of the Liquidator. The detailed analysis of each issue provides a comprehensive understanding of the legal proceedings and decisions leading to the liquidation of the Corporate Debtor.
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