2022 (7) TMI 359 - Tri - Insolvency and Bankruptcy

Seeking Liquidation of Corporate Debtor - Section 33(1) (2) of the Insolvency and 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. M/s. Gurdaspur Overseas Limited is directed to be liquidated in the manner as laid down in Chapter III of the Code. Application allowed.

Summary

Issues:
Liquidation of Corporate Debtor under Section 33(1) & (2) of the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:
1. The Resolution Professional filed an application to liquidate the Corporate Debtor under Section 33(1) & (2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated by State Bank of India, and Mr. Mahesh Bansal was appointed as the Interim Resolution Professional (IRP) initially.

2. The Committee of Creditors (CoC) appointed Mr. Madan Gopal Jindal as the Resolution Professional (RP) to continue the CIR Process. The RP engaged with the Erstwhile Directors of the Corporate Debtor to gather necessary information. Despite efforts to invite Expression of Interest (EoI), no significant responses were received.

3. Multiple attempts were made to attract resolution applicants through the publication of Form G, but no viable EoIs were received. The CoC meetings discussed the lack of feasible resolution plans and ultimately decided to reject the only plan received, leading to the decision to liquidate the Corporate Debtor.

4. An application was filed to exclude specific days from the CIRP period due to various reasons, which was allowed by the Tribunal. The CoC resolved to appoint Mr. Madan Gopal as the Liquidator, and the Tribunal directed the liquidation process to commence as per the provisions of the Insolvency and Bankruptcy Code.

5. The Tribunal, after careful consideration, ordered the immediate liquidation of the Corporate Debtor and appointed Mr. Madan Gopal as the Liquidator. Various directions were given regarding the management of assets, initiation of legal proceedings, submission of reports, and communication with relevant authorities to ensure a smooth liquidation process.

6. The Order also specified the cessation of powers of the Corporate Debtor's management, transfer of authority to the Liquidator, and the requirement for cooperation from the Corporate Debtor's personnel. The Registry was directed to inform all relevant parties about the liquidation order, and the Liquidator was granted the liberty to seek further directions from the Tribunal as needed.

7. The application for liquidation was allowed, and the Tribunal disposed of the matter accordingly, ensuring compliance with the legal procedures outlined in the Insolvency and Bankruptcy Code.

This detailed analysis of the judgment highlights the key events, decisions, and legal provisions involved in the liquidation process of the Corporate Debtor as per the Insolvency and Bankruptcy laws.