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2019 (6) TMI 330 - Tri - Insolvency and BankruptcyLiquidation of the corporate debtor - HELD THAT - The period of 180 days for completion of the insolvency resolution process is expiring on 16.02.2019 and the decision of the CoC was taken in this respect in the meeting held on 22.01.2019. The last date for receiving the Expression of Interest was 19.11.2018, but no resolution plan was received. As Resolution Professional submits that this application has been filed by the Resolution Professional on the basis of the resolution of the CoC recommending the Resolution Professional as Liquidator and a reference is made to the resolution to this effect at page 46 of the paper book. The instant application was filed on 29.01.2019. The Resolution Professional has also furnished his consent in Form AA at Annexure 7 with the application for being appointed as the Liquidator in terms of Section 34 (1) of the Code. He has given all the necessary particulars as required and perusal of the Form, we find the same to be in order. We order the liquidation of the corporate debtor M/s Sadhbhawana Impex Private Limited and appoint Mr.Sanjay Kumar Aggarwal, Resolution Professional as the Liquidator for the purposes of liquidation of the corporate debtor in terms of Section 33 (2) of the Code. His appointment as such will be with effect from the date of receipt of copy of this order. All the directions/requirements and provisions of Chapter III of the Code and Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (hereinafter referred to as Liquidation Process Regulations, 2016) shall be strictly complied with. he Liquidator shall publish public announcement in accordance with Regulation 12 of the Liquidation Process Regulations, 2016 and in Form B of Schedule II
Issues involved:
Application for liquidation under Sections 33(2) and 34(1) of the Insolvency and Bankruptcy Code, 2016; Admittance of petition by Financial Creditor against Corporate Debtor; Constitution of Committee of Creditors (CoC); Lack of resolution plans received; Decision of CoC for liquidation and appointment of Liquidator; Pending arbitration matter; Expiry of insolvency resolution process period; Appointment of Liquidator; Compliance with Code and Regulations; Publication of public announcement for claims submission. Detailed Analysis: 1. Admittance of Petition and Constitution of CoC: The application for liquidation was filed by the Resolution Professional under Sections 33(2) and 34(1) of the Insolvency and Bankruptcy Code, 2016. The petition by the Financial Creditor against the Corporate Debtor was admitted under Section 7 of the Code, leading to the appointment of an Interim Resolution Professional. The CoC, comprising only the Financial Creditor, was constituted, and subsequent proceedings were conducted accordingly. 2. Operational Status and Resolution Plans: The Corporate Debtor was reported to have no operational activities, with only machinery present but not in working condition, no stock of materials, and no employees. Despite the public announcement inviting claims and efforts to solicit resolution plans, none were received from potential applicants, as confirmed in the sixth CoC meeting held on 22.01.2019. 3. CoC Decision for Liquidation and Appointment of Liquidator: With no resolution plans submitted, the CoC, with 100% voting power, decided in favor of liquidating the Corporate Debtor. The Resolution Professional, Mr. Sanjay Kumar Aggarwal, was recommended by the CoC to act as the Liquidator, subject to the approval of the Adjudicating Authority. The decision was made in compliance with the provisions of the Insolvency and Bankruptcy Code, 2016. 4. Appointment of Liquidator and Compliance Requirements: Following the CoC decision, the Resolution Professional was appointed as the Liquidator for the Corporate Debtor, effective immediately upon receipt of the order. The Liquidator was directed to strictly adhere to the Code and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, ensuring compliance with all statutory requirements and procedures. 5. Publication of Public Announcement and Claims Submission: The Liquidator was instructed to publish a public announcement within five days of receiving the order, calling for stakeholders to submit their claims within 30 days from the liquidation commencement date. The announcement was to be made in newspapers and on relevant websites, as per the Liquidation Process Regulations, 2016. 6. Reporting and Further Proceedings: Regulations mandated the Liquidator to file preliminary and progress reports within specified timelines, ensuring regular updates on the liquidation process. Financial Creditors were reminded of their rights to enforce personal guarantees while the Liquidator was directed to cooperate with the Corporate Debtor's personnel as required. 7. Conclusion and Disposal of Application: The judgment concluded by disposing of the application, with copies to be provided to the Liquidator's representative and the Registrar of Companies promptly. The Liquidator was directed to receive a copy via email, ensuring immediate communication of the order for further actions in the liquidation process. This detailed analysis covers the key aspects of the judgment, including the application for liquidation, CoC decisions, appointment of the Liquidator, compliance requirements, claims submission procedures, and the overall conclusion of the case.
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