2022 (8) TMI 614 - Tri - Insolvency and Bankruptcy

Seeking orders for Liquidation of the Corporate Debtor - Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 (the Code) and Rule 11 of NCLT Rules, 2016 - HELD THAT - Despite all possible steps as required under the Code, taken during the CIRP, the CoC did not receive any viable proposal for revival of the Company. The counsel submits that the decision in the IAs pending, will not have any bearing on the allowing of this application. Application allowed.

Summary

Issues: Application for Liquidation of Corporate Debtor and Appointment of Liquidator

Analysis:
1. Background and Application Filing:
- The Resolution Professional filed an Application under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking Liquidation of M/s. Guntur Multi Packaging Industries Private Limited and the appointment of Mr. Siva Sai Hari Bhaskar Neti as Liquidator.

2. Chronology of Events:
- The NCLT, Amaravati, admitted the Petition for Corporate Insolvency Resolution Process (CIRP) and appointed an Interim Resolution Professional (IRP) to manage the affairs of the Corporate Debtor.
- The IRP issued a Public Announcement for creditors to submit claims and constituted a Committee of Creditors (CoC) upon receiving a claim from a Financial Creditor.
- Various CoC meetings were held to discuss CIRP expenses, funding requirements, remuneration of professionals, and ultimately decided on appointing a Liquidator with 100% voting in favor.

3. Application for Liquidation:
- The Application sought the appointment of the Resolution Professional as the Liquidator due to the lack of viable proposals for the revival of the Company despite all necessary steps taken during the CIRP.

4. Tribunal's Decision:
- The Tribunal allowed the Application and directed the appointment of Mr. Siva Sai Hari Bhaskar Neti as the Liquidator.
- Various directions were issued, including the issuance of a public announcement, cessation of the Moratorium, transfer of powers to the Liquidator, and compliance with the relevant sections of the Insolvency and Bankruptcy Code and Regulations.
- The Liquidator was granted the authority to manage the affairs of the Corporate Debtor, and personnel connected with the Debtor were instructed to cooperate with the Liquidator.

5. Concluding Actions:
- The Order was deemed a notice of discharge to the officers, employees, and workmen of the Corporate Debtor, except in cases where the business is continued during the Liquidation process.
- Copies of the Order were to be furnished to relevant authorities and stakeholders, and the specific IA related to the Liquidation application was disposed of by the Tribunal.