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2022 (5) TMI 1209 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Section 33(2) read with Section 34 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The primary object of the Code is resolution and liquidation is the last resort. At the same time keeping the timelines prescribed under the Code is paramount, lest asset value is deteriorated. Therefore, taking into consideration of the provisions of law as well as the documents on record, this Adjudicating Authority is of the view that as there is no viable resolution plans received for the Corporate Debtor and the time period for the completion of CIRP process, the only option left under the circumstances being early liquidation process, hence this application directing the liquidation for the Corporate Debtor is allowed. This Adjudicating Authority hereby orders liquidation of the Corporate Debtor, i.e., Anjali Waterford Hospitality and Infra Limited, which shall be conducted in the manner as laid down in Chapter III of Part II of the Code - application allowed.
Issues Involved:
Liquidation of Corporate Debtor under the Insolvency and Bankruptcy Code, 2016. Detailed Analysis: Issue 1: Application for Liquidation The Applicant/Resolution Professional (RP) filed an application under Section 33(2) read with Section 34 of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the Corporate Debtor, Anjali Waterford Hospitality and Infra Limited. Issue 2: Background and Proceedings - The Operational Creditor initiated Corporate Insolvency Resolution Process against the Corporate Debtor. - The Interim Resolution Professional (IRP) was appointed, who later became the Resolution Professional (RP) after approval by the Committee of Creditors (COC). - COC meetings were held, and various steps were taken in the Corporate Insolvency Resolution Process (CIRP) including inviting Expression of Interests (EoIs) from prospective resolution applicants. - No viable resolution plans were received within the specified timelines, leading to the decision for liquidation. Issue 3: Decision for Liquidation The COC members, after noting the absence of resolution plans and the unlikelihood of reviving the Corporate Debtor, decided to liquidate the company. The Liquidator was proposed and appointed with a fixed fee as per the regulations. Issue 4: Judicial Decision The Adjudicating Authority considered the lack of viable resolution plans, the importance of adhering to prescribed timelines, and the objective of the Code to prioritize resolution over liquidation. However, due to the circumstances and the absence of feasible plans, the Authority approved the application for liquidation of the Corporate Debtor. Final Orders and Directions - Liquidation of the Corporate Debtor was ordered in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016. - A specific Liquidator was appointed with prescribed duties and responsibilities. - The moratorium declared under Section 14 of the Code ceased to have effect from the date of the liquidation order. - Legal proceedings against the Corporate Debtor were restricted, except for certain transactions. - The powers of the Board of Directors and other key personnel ceased, transferring to the Liquidator. - The Liquidator was directed to comply with the relevant sections of the Code and regulations, with assistance expected from personnel connected to the Corporate Debtor. - The Liquidator's fees were specified, and necessary notifications and compliance measures were outlined. This comprehensive analysis highlights the legal journey leading to the decision for liquidation of the Corporate Debtor, emphasizing the procedural steps, judicial considerations, and final orders issued by the Adjudicating Authority.
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