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2022 (9) TMI 1342 - Tri - Insolvency and BankruptcySeeking Liquidation of Corporate Debtor - Section 33 (1) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - Upon perusing the material available on record, it is observed from the minutes of the 12th CoC meeting that the COC unanimously decided to liquidate the Corporate Debtor. Even though the COC in its 12th meeting unanimously decided to liquidate the Corporate Debtor, no voting was conducted in this regard for the reason best known to the COC. It is important to observe here that more than 397 days has been elapsed without any Resolution application and therefore this Tribunal by virtue of powers conferred under section 33(1)(b)(i), orders Liquidation. Application allowed.
Issues Involved:
1. Liquidation application under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. 2. Consideration of resolution plans by the Committee of Creditors (CoC). 3. Appointment of liquidator and initiation of liquidation process. Issue 1: Liquidation application under Section 33(1) of the Insolvency and Bankruptcy Code, 2016: The Tribunal received an application seeking liquidation of a Corporate Debtor under Section 33(1) of the Code. The Resolution Professional filed the application, requesting the Tribunal to order the liquidation of the Corporate Debtor and appoint the Resolution Professional as the liquidator. The application highlighted the failed attempts at approving a resolution plan, leading to the necessity of liquidation as the only viable option. Despite efforts to consider resolution plans, including one submitted by a Prospective Resolution Applicant, none were approved by the Committee of Creditors (CoC). The Tribunal, after reviewing the circumstances and the elapsed time without a resolution application, ordered the liquidation of the Corporate Debtor under Section 33(1)(b)(i) of the Code. Issue 2: Consideration of resolution plans by the Committee of Creditors (CoC): The application detailed the series of events related to the consideration of resolution plans by the CoC. Various meetings were held where the Resolution Professional presented updates on the process, including the appointment of a valuer and the submission of Expression of Interest. Despite efforts to solicit and evaluate resolution plans, none received the necessary approval from the CoC. The rejection of the plans, including a final attempt by a Prospective Resolution Applicant, led to the unanimous decision by the CoC to opt for liquidation. The Tribunal noted the CoC's decision to liquidate the Corporate Debtor in the absence of an approved resolution plan, emphasizing the need for timely resolution under the Code. Issue 3: Appointment of liquidator and initiation of liquidation process: Following the decision to liquidate the Corporate Debtor, the Tribunal appointed the Resolution Professional as the Liquidator in accordance with Section 34(1) of the Code. The Liquidator was tasked with conducting the liquidation proceedings, adhering to the regulations governing the liquidation process. The order outlined the responsibilities and powers vested in the Liquidator, including the cessation of powers of the Corporate Debtor's management. Additionally, directions were provided for issuing public notices, cooperation from Corporate Debtor personnel, and restrictions on legal proceedings during the liquidation process. The order concluded by allowing the liquidation application and initiating the liquidation process under the supervision of the appointed Liquidator. This comprehensive summary provides a detailed analysis of the Tribunal's judgment, covering the issues of liquidation application, consideration of resolution plans by the CoC, and the appointment of a liquidator for the initiation of the liquidation process.
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