2022 (11) TMI 698 - Tri - Insolvency and Bankruptcy

Seeking liquidation of Corporate Debtor - section 33 of Insolvency and Bankruptcy Code, 2016 (IBC) - HELD THAT - In view of the satisfaction of the conditions provided under Section 33 of the Code, the Corporate Debtor i.e. M/s. Sohrab Textile Mills Ltd., is directed to be liquidated in the manner as laid down in Chapter III of the Code. The Corporate debtor is liquidated with immediate effect in the manner provided under Chapter III Part II of the IBC 2016 - Application allowed.

Summary

Issues:
Liquidation application under section 33 of IBC for M/s. Sohrab Textiles Mills Ltd.

Analysis:
1. Background and Application for Liquidation:
- The Resolution Professional (RP) filed an application under section 33 of the Insolvency and Bankruptcy Code, 2016 (IBC) for the liquidation of M/s. Sohrab Textiles Mills Ltd.
- The CoC meetings and decisions leading to the liquidation application were detailed, including the replacement of the IRP with the new RP, publication of Form-G, and lack of resolution plan submissions.

2. Legal Provisions and Liquidation Order:
- Section 33(2) of the IBC outlines the circumstances under which a liquidation order can be passed by the Adjudicating Authority.
- The CoC, with 100% voting share, resolved for the liquidation of the corporate debtor due to the absence of a resolution plan.
- The appointment of the RP as the Liquidator was discussed and resolved in the CoC meeting, complying with Section 34 of the IBC.

3. Appointment of Liquidator and Compliance:
- The RP consented to act as the Liquidator, fulfilling the requirements under Section 34 of the IBC.
- The Tribunal verified the credentials of the appointed Liquidator, Mr. Prem Chand Goyal, finding no adverse information.
- The Tribunal directed the liquidation of the corporate debtor in accordance with Chapter III of the IBC.

4. Order and Directions for Liquidation Process:
- The Tribunal issued detailed orders regarding the liquidation process, including the appointment of the Liquidator, takeover of assets, public announcements, and continuation of arbitration claims.
- Various regulations and provisions of the IBC were cited to ensure compliance during the liquidation process.
- Directions were given for the submission of reports, recovery of receivables, cessation of legal proceedings, and transfer of powers to the Liquidator.

5. Concluding Remarks:
- The Tribunal allowed and disposed of the liquidation application, emphasizing the immediate commencement of the liquidation process.
- Instructions were provided for communication with relevant authorities, compliance reporting, and seeking further directions from the Tribunal during the liquidation process.

This comprehensive analysis outlines the legal proceedings, decisions, and directives leading to the liquidation of M/s. Sohrab Textiles Mills Ltd. as per the provisions of the Insolvency and Bankruptcy Code, 2016.