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2021 (11) TMI 607 - Tri - Insolvency and BankruptcySeeking Liquidation of Corporate Debtor - section 33(1)(a) of Chapter III of IBC, 2016 - Seeking appointment of Resolution Professional as Liquidator for administering the Liquidation Process of the Corporate Debtor - HELD THAT - Since this Adjudicating Authority did not receive any Resolution Plan under Sub-Section (6) of Section 30 of the I B Code, 2016, this Adjudicating Authority deems it proper to allow the Application. This Adjudicating Authority hereby order for Liquidation of M/s. Velugu Engineering and Enterprises Private Limited which shall be conducted in the manner as laid down in Chapter III of part II of the I B Code, 2016 - Application allowed.
Issues:
1. Liquidation of the Corporate Debtor under Sections 33(1)(a) and 33(2) of the I&B Code, 2016. 2. Appointment of Liquidator for administering the Liquidation Process. 3. Powers and duties of the Liquidator post-liquidation. 4. Funding of the liquidation cost by the sole Committee of Creditors (CoC) member. 5. Fee entitlement of the Liquidator for conducting the Liquidation proceedings. Analysis: 1. The Tribunal received an application seeking liquidation of the Corporate Debtor under Sections 33(1)(a) and 33(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated by a Financial Creditor, and the Interim Resolution Professional (IRP) was appointed. The Committee of Creditors (CoC) unanimously decided on liquidation due to the absence of fixed assets and the company not operating for over three years. 2. The CoC passed a resolution to appoint the IRP as the Liquidator for the Corporate Debtor. The Tribunal, in exercise of its powers under the I&B Code, ordered the liquidation of the company and appointed Mr. C.S. Bhaskar B. as the Liquidator. The moratorium declared under Section 14 of the I&B Code ceased to have effect from the date of the liquidation order. 3. Post-liquidation, all powers of the Board of Directors, Key Managerial Personnel, and Partners of the Corporate Debtor vested in the Liquidator. The Liquidator was directed to manage the affairs of the company in accordance with the provisions of the I&B Code and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 4. The liquidation cost was to be funded by the sole CoC member, as resolved in the CoC meeting. The Liquidator was entitled to charge a fee for conducting the liquidation proceedings as decided by the CoC under the relevant regulations. 5. The Tribunal directed the Registry to send a copy of the order to the concerned authorities for information and compliance. The application seeking liquidation was disposed of in accordance with the Tribunal's order, concluding the matter. This detailed analysis of the judgment highlights the key issues addressed by the Tribunal regarding the liquidation process and the appointment of the Liquidator for the Corporate Debtor.
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