2022 (7) TMI 354 - Tri - Insolvency and Bankruptcy

Seeking liquidation of Corporate Debtor - Section 33(1) of the Insolvency Bankruptcy Code, 2016 - HELD THAT - In view of the satisfaction of the conditions provided under Section 33 of the Code, the corporate debtor i.e. Modi Telecommunications Limited is directed to be liquidated in the manner as laid down in the Chapter III of the Code. Application admitted - moratorium declared.

Summary

Issues:
Liquidation of Corporate Debtor under Section 33(1) of IBC, 2016.

Detailed Analysis:

1. Initiation of Liquidation Process:
- The Tribunal admitted the petition for the initiation of the Corporate Insolvency Resolution Process (CIRP) by the Corporate Debtor under Section 10 of the IBC, 2016.
- Mr. Atul Mittal was appointed as the Interim Resolution Professional for the CIRP.
- The Interim Resolution Professional (IRP) took necessary steps as per IBBI Regulations 2016, including making public announcements for creditors to submit claims by a specified date.
- Despite efforts, no claims were received by the IRP, leading to the inability to form a Committee of Creditors (CoC) as required by regulations.

2. Liquidation Order:
- The Tribunal reviewed Section 33(1) of the IBC, which specifies conditions for passing a liquidation order.
- Considering the satisfaction of the conditions under Section 33, the Tribunal directed the liquidation of the Corporate Debtor, Modi Telecommunications Limited.
- The biggest creditor, the Department of Telecommunications, was highlighted for not submitting any claim during the CIRP proceedings.
- The liquidator was instructed to make further efforts to engage with the Department of Telecommunications during the liquidation process.

3. Order and Directions:
- The Tribunal passed an order for immediate liquidation of the Corporate Debtor under Chapter III Part II of the IBC 2016.
- Mr. Atul Mittal, the IRP, consented to act as the Liquidator and was appointed as such.
- The Liquidator was directed to take control of assets, make public announcements, and comply with regulations for the liquidation process.
- Various provisions of the IBC were invoked, including the submission of reports, recovery of receivables, cessation of powers of the Board of Directors, and cooperation with the Liquidator.
- Directions were given for the payment of the Liquidator's fee and communication of the order to relevant authorities.

4. Conclusion:
- The Tribunal disposed of the application, marking the completion of the proceedings related to the liquidation of the Corporate Debtor.
- The detailed order outlined the steps to be taken during the liquidation process, emphasizing compliance with regulations and cooperation with the appointed Liquidator.

This comprehensive analysis reflects the Tribunal's decision to proceed with the liquidation of the Corporate Debtor based on the provisions of the IBC, 2016 and the specific circumstances of the case.