2019 (4) TMI 1207 - Tri - Insolvency and Bankruptcy

Liquidation of the corporate debtor, M/s Integrated Caps Pvt. Ltd. - Initiation of Corporate Insolvency Resolution Process - Section 9 of Insolvency and Bankruptcy Code, 2016 - HELD THAT - In the absence of any resolution plan and for want of time beyond statutory CIRP period; there is no other alternative but to order in conformity with the required majority decision of the CoC for liquidation of the corporate debtor under Section 33 of the Code. Application is allowed by ordering liquidation of the corporate debtor, namely M/s Integrated Caps Pvt. Ltd. in the manner laid down in the Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016.

Summary

Issues: Liquidation of Corporate Debtor M/s Integrated Caps Pvt. Ltd.

1. Appointment of Resolution Professional (RP) and Change in RP:
The application was filed by the Resolution Professional under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 for liquidation of the corporate debtor. Initially, the Interim Resolution Professional was appointed, followed by a proposal for a change in the RP by the Syndicate Bank, which was approved by the Committee of Creditors (CoC). However, a subsequent application for appointing a new Resolution Professional was dismissed by the Tribunal.

2. Valuation of Assets and Decision for Liquidation:
The Resolution Professional took control of the assets of the Corporate Debtor, including land, buildings, plant & machinery, and other fixed assets. Two valuers were appointed to assess the assets, determining the book value, fair value, and estimated liquidation value. Due to the non-receipt of any resolution plan within the stipulated time frame, the CoC decided to recommend the liquidation of the Corporate Debtor.

3. Extension of Corporate Insolvency Resolution Process (CIRP) Period:
An application was filed for the extension of the CIRP period, which was granted for 61 days. Despite the extension, no resolution plan was received, leading to the decision for liquidation by the CoC.

4. Decision for Liquidation and Appointment of Liquidator:
With the absence of a resolution plan and the statutory CIRP period expiring, the CoC unanimously voted for the liquidation of the corporate debtor. The Tribunal, in line with the CoC's decision, ordered the liquidation of M/s Integrated Caps Pvt. Ltd. Appointed Mr. Pankaj Khetan as the Liquidator and issued directions for the liquidation process, including the submission of a Preliminary Report within a specified timeline.

5. Concluding Orders and Disposal of Application:
The Tribunal directed the Liquidator to issue a Public Announcement, communicated the order to relevant authorities, and initiated a fresh Moratorium under the Insolvency and Bankruptcy Code. The order also served as a notice of discharge to the corporate debtor's officers, employees, and workmen. The application was disposed of in accordance with the liquidation order.

This detailed analysis covers the key issues involved in the judgment regarding the liquidation of the corporate debtor, M/s Integrated Caps Pvt. Ltd., and the legal proceedings leading to the decision for liquidation as per the Insolvency and Bankruptcy Code, 2016.