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2021 (8) TMI 950 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - seeking withdrawal of CIRP in relation to the Corporate Debtor - 330 days period of CIRP in relation to the Corporate Debtor expired - Section 12A of IBC, 2016 - HELD THAT - The Applicant has not disclosed the Liquidation value in relation to the Corporate Debtor. It is stated in the said Application that in order to maintain the confidentiality the Applicant has not disclosed the Liquidation value. However, it is very strange on the part of the Applicant to state so, since the Applicant/RP has disclosed the purported settlement proposal given by the promoter of the Corporate Debtor as ₹ 328.21 Crore, however fails to disclose the Liquidation value under the pretext that it is confidential, which statement, it is found that paradoxical and not amenable to ordinary prudence. The Corporate Debtor is required to be ordered for liquidation as per Section 33(1)(a) of IBC, 2016 - Application allowed.
Issues: Liquidation order sought for Corporate Debtor following expiry of CIRP period.
Analysis: 1. The application was filed seeking an order of Liquidation for the Corporate Debtor after the dismissal of a previous application under Section 12A of IBC, 2016, which sought withdrawal of CIRP. The 330-day period for CIRP had expired, leading to the current Liquidation application. 2. The application for Liquidation did not disclose the Liquidation value of the Corporate Debtor, citing confidentiality concerns. However, the applicant had disclosed a settlement proposal by the Corporate Debtor's promoter. The Tribunal found the lack of disclosure paradoxical and not in line with ordinary prudence. 3. Following the dismissal of the earlier application, the Corporate Debtor was ordered for liquidation as per Section 33(1)(a) of IBC, 2016. A Liquidator was appointed as per the latest list provided by IBBI, with specific directions to act in accordance with IBC provisions, issue public announcements, investigate financial affairs, communicate with regulatory authorities, and proceed with the liquidation process as per the Code. 4. The Liquidator was directed to investigate financial affairs, submit reports within specified timelines, and inform relevant authorities about the liquidation order. The order of Moratorium under Section 14 was to cease, and a new Moratorium under Section 33(5) would commence. The Liquidator was instructed to follow the process laid down in Chapter III of the IBC, 2016. 5. The Tribunal directed the Liquidator to investigate financial affairs, respond to pending Company Applications, and submit reports as required by relevant regulations. The order was to be communicated to financial creditors, the Corporate Debtor, and the Liquidator for necessary steps and cooperation in the liquidation process. 6. Consequently, the application for Liquidation of the Corporate Debtor was allowed, and the Liquidator was tasked with carrying out the liquidation process in accordance with the specified directions and regulations.
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