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2022 (6) TMI 311 - Tri - Insolvency and BankruptcyLiquidation of the Corporate Debtor - Section 33(2) and 60(5) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - Since the COC in its commercial wisdom has decided to take the Corporate Debtor in liquidation, it is opined that the decision of the COC should not be interfered with. The present application seeking liquidation of the Corporate Debtor M/s. Vibrant Fab Private Limited, in the manner laid down in Chapter III of Part II of the Code is allowed. The Corporate Debtor is ordered to be liquidated - application allowed.
Issues:
Liquidation of Corporate Debtor M/s. VIBRANT FAB PVT. LTD. and appointment of a liquidator. Analysis: The application filed by the Resolution Professional (RP) under Section 33(2) and 60(5) of the Insolvency and Bankruptcy Code, 2016 sought an order for the liquidation of the Corporate Debtor, M/s. VIBRANT FAB PVT. LTD. The process began with the Financial Creditor initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which led to the appointment of an Interim Resolution Professional (IRP). The IRP admitted creditor claims, formed a Committee of Creditors (COC), and conducted meetings to manage the affairs of the Corporate Debtor. Subsequently, the COC decided to replace the IRP with a Resolution Professional (RP), which was approved by the Authority. The COC meetings addressed various aspects, including the appointment of Registered Valuers, Transaction Auditor, and inviting Expression of Interest (EOI) from Prospective Resolution Applicants. Despite efforts to attract interest, no EOI was received, leading the COC to pass a resolution for the liquidation of the Corporate Debtor with 100% voting share. The Tribunal referred to Section 33(2) of the Code, which allows the liquidation of a corporate debtor upon the decision of the COC. The Tribunal acknowledged the commercial wisdom of the COC's decision and allowed the application for liquidation of M/s. VIBRANT FAB PVT. LTD. The RP was appointed as the Liquidator, with specific directions to follow the procedures outlined in the Code and investigate the financial affairs of the Corporate Debtor. The order also discharged the officers, employees, and workmen of the Corporate Debtor. The Liquidator was instructed to submit a Preliminary Report within a specified timeframe. The Tribunal highlighted the cessation of the moratorium under Section 14 and the commencement of a fresh moratorium under Section 33(5) of the Code as a consequence of the liquidation order. The Tribunal directed the Liquidator to issue a Public Announcement, proceed with the liquidation process, investigate financial affairs, and submit reports as per regulations. The order was communicated to the RP, Corporate Debtor, and Liquidator, with copies sent to relevant authorities for record-keeping and compliance purposes. The appointment of the Liquidator marked the beginning of the liquidation process, with specific timelines and procedures to be followed in accordance with the Code and relevant regulations.
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