9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 632 - Tri - Insolvency and BankruptcySeeking liquidation of the Corporate Debtor - no resolution Plan was received - Section 33(2) of I B Code - HELD THAT - Section 33(2) of the Code enjoins the Adjudicating Authority to pass an order for liquidation of the Corporate Debtor where the resolution professional, at any time during the CIRP but before confirmation of the resolution plan, intimates the Adjudicating Authority of the decision of the CoC approved by not less than sixty-six percent of the voting share, to liquidate the Corporate Debtor. In the present case, the CoC has resolved by 100% voting share to liquidate the Corporate Debtor. The Corporate Debtor is ordered to be liquidated in terms of section 33(2) of the Code read with sub-section (1) thereof - Application allowed.
Issues involved:
Liquidation of Corporate Debtor due to absence of resolution plan. Analysis: The judgment by the National Company Law Tribunal, Kolkata Bench, involved an application for the liquidation of a Corporate Debtor, Madhusala Drinks Private Limited, as no resolution plan was received. The Corporate Insolvency Resolution Process (CIRP) was initiated earlier following a petition by a financial creditor, State Bank of India. The Resolution Professional, appointed after due process, extended deadlines for submission of resolution plans and Earnest Money Deposit (EMD) multiple times, but no viable plan was forthcoming. The Committee of Creditors (CoC) unanimously decided to liquidate the Corporate Debtor as no resolution plan was available for discussion. The CoC passed a resolution by 100% voting shares for liquidation under section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority, in accordance with section 33(2) of the Code, ordered the liquidation of the Corporate Debtor as approved by the CoC. The Resolution Professional was appointed as the Liquidator to oversee the liquidation process. The Liquidator was directed to follow the provisions of the Code and relevant regulations for the liquidation process. All powers of the Board of Directors and key managerial persons ceased to exist, transferring to the Liquidator. The Corporate Debtor's personnel were instructed to cooperate with the Liquidator during the liquidation process. Additionally, the judgment specified that no legal proceedings could be initiated against the Corporate Debtor once the liquidation process commenced, except with the prior approval of the Adjudicating Authority. The liquidation order served as a discharge notice to the officers, employees, and workmen of the Corporate Debtor. The Liquidator was required to file a copy of the order with the Registrar of Companies and the Registry was directed to forward a copy to the relevant authorities. The application for liquidation was disposed of as per the directions provided in the judgment. The Tribunal also directed the Registry to inform all parties and their counsel via email about the order and to issue a certified copy upon formal application. A follow-up reporting on progress was scheduled for a later date.
|
