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2021 (9) TMI 1019 - Tri - Insolvency and BankruptcyLiquidation of the Corporate Applicant - Section 33(2) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - This Tribunal in the circumstances taking into consideration the provisions of law as well as on facts is hereby orders for liquidation of the corporate debtor and in the circumstances the corporate debtor is put under Liquidation and the incidence of liquidation to follow, on and from the date of this order in terms of the provisions of IBC, 2016 and more particularly as given in Chapter - III of IBC, 2016 and also in terms of Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017. Mr. Punit Handa, Resolution Professional, has given consent to act as the Liquidator vide written communication dated 18.08.2021 and is, therefore, appointed as Liquidator under section 34 of the Insolvency and Bankruptcy code, 2016 read with Regulation 3 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 - the corporate debtor is ordered to be liquidated - application allowed.
Issues:
1. Application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. 2. Consideration of resolution plan and decision for liquidation. 3. Appointment of Liquidator and initiation of liquidation process. 4. Communication of liquidation order to relevant authorities and compliance with regulations. Issue 1: Application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 The application filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 sought the order of liquidation for the Corporate Applicant, J.V. Restaurant Private Limited. The Corporate Insolvency Resolution Process was initiated due to default, and the Adjudicating Authority admitted the application, appointing an Interim Resolution Professional. Subsequently, the Resolution Professional invited claims from creditors and constituted the Committee of Creditors (CoC). Despite efforts to find a resolution plan, none was received, leading to the decision for liquidation under section 33(2) of the IBC. Issue 2: Consideration of resolution plan and decision for liquidation At the 6th CoC meeting, it was noted that no Resolution Plan had been received, prompting the CoC members to pass a resolution with 100% voting to initiate the liquidation of the Corporate Debtor. The Resolution Professional presented the financial statements of the Corporate Debtor and highlighted the inability to absolve the Corporate Debtor from liquidation. The decision for liquidation was made in compliance with the provisions of section 33 of the IBC, 2016, as outlined in the relevant sub-sections. Issue 3: Appointment of Liquidator and initiation of liquidation process The Tribunal ordered the liquidation of the Corporate Debtor, appointing the Resolution Professional as the Liquidator. The Liquidator was directed to issue a Public Announcement, communicate the order to relevant authorities, and comply with regulations governing the liquidation process. The order specified the cessation of the Moratorium under Section 14 of the IBC, with a fresh Moratorium under Section 33(5) commencing. The Liquidator was instructed to proceed with the liquidation process as per the IBC and relevant regulations, submitting a Preliminary Report within the stipulated timeframe. Issue 4: Communication of liquidation order to relevant authorities and compliance with regulations The Tribunal's order included directions for the communication of the liquidation order to the Registrar of Companies, NCT of Delhi & Haryana, and the Insolvency and Bankruptcy Board of India. The Liquidator was mandated to inform the Income Tax Department and other regulatory authorities about the liquidation order. Additionally, the order served as a notice of discharge to the officers, employees, and workmen of the Corporate Debtor. The Liquidator was tasked with adhering to the procedures outlined in Chapter III of the IBC and relevant regulations, ensuring compliance with the liquidation process. This comprehensive analysis of the judgment highlights the key issues addressed by the Tribunal in the context of the application for liquidation under the Insolvency and Bankruptcy Code, 2016, providing a detailed overview of the decision-making process and the subsequent directives for the initiation of the liquidation process.
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