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2022 (7) TMI 832 - Tri - Insolvency and BankruptcySeeking Liquidation of the Corporate Debtor - Section 33 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - Since neither any Expression of Interest nor any Resolution Plan was received from any Resolution Applicant, the CoC approved the Resolution for initiating liquidation proceedings under Section 33 of the Code against the Corporate Debtor and authorised the RP to file an Application for Liquidation by passing the Resolution with 100% voting share. Further the CoC also resolved to appoint the RP, Mr. Lakshmikant Yeshwant Desai, as the Liquidator for the Corporate Debtor. This is a fit case for liquidation - Application allowed.
Issues Involved:
Application for Liquidation under Section 33 of the Insolvency and Bankruptcy Code, 2016 Analysis: 1. Background and CIRP Process: The case involved an Application under Section 33 of the Insolvency and Bankruptcy Code, 2016 seeking orders for Liquidation of the Corporate Debtor, Global Towers Limited. The Corporate Insolvency Resolution Process (CIRP) commenced on a specific date after the appointment of the Interim Resolution Professional (IRP) and subsequent Resolution Professional (RP) as per the provisions of the Code. Various meetings were held during the CIRP, including the formation of the Committee of Creditors (CoC) and the appointment of professionals for valuation and other necessary functions. 2. Valuation and Compliance: The RP appointed independent valuers for the valuation of assets, land, and buildings of the Corporate Debtor, in compliance with the IBBI Regulations. Additionally, legal and professional consultants were appointed for specific tasks, and their fees were approved as part of the CIRP costs. The CoC ratified various expenses and reports during the CIRP period. 3. Decision for Liquidation: Due to the absence of any Expression of Interest or Resolution Plan from potential Resolution Applicants, the CoC approved the initiation of liquidation proceedings under Section 33 of the Code. The CoC authorized the RP to file an Application for Liquidation, and the RP was appointed as the Liquidator for the Corporate Debtor. The decision for liquidation was made after careful consideration of the circumstances and the lack of viable resolution options. 4. Order for Liquidation: The Tribunal, after reviewing the submissions and averments of the Applicant, deemed it a fit case for liquidation. The Tribunal issued a comprehensive order for the liquidation process, including the appointment of the RP as the Liquidator, the cessation of powers of the Board of Directors, and the commencement of a fresh Moratorium under the Code. The Liquidator was tasked with specific duties and powers as per the Code and Regulations, and all personnel connected with the Corporate Debtor were directed to cooperate with the Liquidator. 5. Conclusion: The Order for Liquidation was deemed necessary in this case, and the Tribunal allowed the Application filed by the RP for Liquidation of the Corporate Debtor. The detailed directions and provisions outlined in the Order aimed to facilitate a smooth transition into the liquidation process while ensuring compliance with the relevant legal framework and protecting the interests of all stakeholders involved in the insolvency proceedings.
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