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2019 (4) TMI 1013 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - replacement of Resolution Professional, Shri. R. Mukundan and to appoint a new insolvency professional as the Liquidator - Section 7 of the I B Code, 2016 - HELD THAT - The Resolution Professional has filed MA/139/IB/2019 in CP/699/IB/CB/2017 with the prayers to pass an order for liquidation of the Corporate Debtor viz., M/s. Gemini Communication Limited and to appoint a new insolvency professional as the liquidator. Since no Resolution Plan has been received by this Authority under sub-section (6) of Section 30 of the I B Code, 2016, before the expiry of the Corporate Insolvency Resolution Process period, the Corporate Debtor has to be ordered for Liquidation.
Issues:
1. Application under Section 33 of the Insolvency and Bankruptcy Code, 2016 for liquidation of the Corporate Debtor. 2. Replacement of Resolution Professional and appointment of a new insolvency professional as the Liquidator. 3. Evaluation of Resolution Plans and decision-making by the Committee of Creditors (CoCs). 4. Liquidation order and appointment of Company Liquidator. Issue 1: Application under Section 33 for liquidation of the Corporate Debtor The Resolution Professional filed an application under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of the Corporate Debtor, M/s. Gemini Communication Limited. This application was a result of the failure to receive any Resolution Plan within the stipulated time period, leading to the necessity of ordering liquidation as per the provisions of the Code. Issue 2: Replacement of Resolution Professional and appointment of a new Liquidator The CoCs decided to replace the existing Resolution Professional with a new one, Mr. R. Mukundan. Subsequently, the Resolution Professional took over the management and evaluated the received Expression of Interests (EoIs) for the Corporate Debtor. After rejecting unsatisfactory EoIs, a fresh invitation was made, and the timeline for the Corporate Insolvency Resolution Process was extended by 60 days. Despite receiving revised Resolution Plans, the CoCs ultimately rejected them, leading to the decision to appoint a Liquidator. Issue 3: Evaluation of Resolution Plans and decision-making by the CoCs The CoCs evaluated the Resolution Plans submitted by prospective Resolution Applicants. The CoCs found the offer in one plan to be low compared to the debt, discriminatory among creditors, and not acceptable due to certain conditions. Another revised plan was submitted but was ultimately rejected by the CoCs through a voting process, leading to the decision to request the NCLT to appoint a Liquidator for the Corporate Debtor. Issue 4: Liquidation order and appointment of Company Liquidator Based on the Resolution Professional's application, the CoCs' decision, and the provisions of the Insolvency and Bankruptcy Code, 2016, the Tribunal proceeded to pass a Liquidation Order for M/s. Gemini Communication Limited. Mr. Kasiviswanathan was appointed as the Company Liquidator, with specific duties and powers outlined in the Code and related regulations. The order included directions regarding the cessation of powers of the existing management, cooperation with the Liquidator, fee entitlement of the Liquidator, and communication of the order to relevant entities for compliance. This detailed analysis of the judgment in the matter of liquidation of M/s. Gemini Communication Limited under the Insolvency and Bankruptcy Code, 2016, highlights the key issues, actions taken, and decisions made by the Resolution Professional, CoCs, and the Tribunal, culminating in the appointment of a Liquidator for the Corporate Debtor.
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