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2021 (7) TMI 1179 - Tri - Insolvency and BankruptcyLiquidation of the Corporate Debtor - appointment of Liquidator - cessation of the moratorium declared under Section 14 of IBC - HELD THAT - The Applicant has filed Form - H from which it is evident that the Fair value and Liquidation value in respect of the assets of the Corporate Debtor is arrived at ₹ 6.35 Crore and ₹ 5.50 Crore. Since the CoC in its 8th meeting held on 31.03.2021 after discussing and deliberating about the current affairs of the Corporate Debtor by taking into consideration that there was no Eol being received from any prospective Resolution Applicant, even after the same was issued twice and also keeping in view of the fact that the Corporate Debtor is not running its business and based on its commercial wisdom has decided to liquidate the Corporate Debtor. The liquidation of corporate Debtor is ordered - the liquidator is appointed - application allowed.
Issues:
Liquidation of Corporate Debtor under Section 33(2) of IBC, 2016 Analysis: The Tribunal, in response to an application seeking liquidation of a Corporate Debtor, reviewed the history of the case. Initially, a Financial Creditor filed a Section 7 application against the Corporate Debtor, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) and the appointment of an Interim Resolution Professional (IRP). The IRP issued a Public Announcement for claims, with only the Financial Creditor submitting a claim. Subsequently, the Commercial Tax Officer submitted a belated claim. Despite efforts to find a Resolution Applicant, no viable interest was shown. The Corporate Debtor's affairs were discussed in various meetings, leading to the decision to liquidate the company. The CoC determined the Fair value and Liquidation value of the assets, ultimately deciding on liquidation based on commercial wisdom and legal provisions. The Tribunal noted that the CoC's decision to liquidate was made after due consideration of the lack of interest from Resolution Applicants and the non-operation of the Corporate Debtor's business. The decision was also guided by the provisions of Section 33 of IBC, 2016 and the absence of opposition from the Promoters of the Corporate Debtor. Citing a previous Supreme Court decision, the Tribunal ordered the liquidation of the Corporate Debtor. The appointed Liquidator was directed to adhere strictly to the IBC, 2016 provisions and regulations, including conducting investigations into the Corporate Debtor's financial affairs and filing necessary applications. The Liquidator was tasked with communicating the liquidation order to relevant authorities, initiating the liquidation process, and submitting reports as required by regulations. The Tribunal's order included directions for the Liquidator to handle the liquidation process, investigate financial affairs, notify regulatory authorities, and submit reports within specified timelines. The order also addressed the cessation of the Moratorium under Section 14 of IBC, 2016, and the commencement of a fresh Moratorium under section 33(5) of the Code. Additionally, the Liquidator was instructed to manage pending Company Applications during the liquidation process and provide regular updates to the Tribunal. The order mandated the distribution of copies to relevant parties for cooperation in the liquidation process of the Corporate Debtor. Ultimately, the application seeking liquidation was allowed by the Tribunal with specified terms and conditions.
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