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2022 (9) TMI 1341 - Tri - Insolvency and BankruptcySeeking Liquidation of Corporate Debtor - Section 33 of the Insolvency and Bankruptcy Code, 2016 read with Rule of the NCLT Rules, 2016 - HELD THAT - It can be seen from the submissions that the CIRP of the Corporate Debtor ended on 24.08.2021 and the Committee of Creditors in the 9th COC meeting held on 03.03.2022 has resolved to liquidate the Corporate Debtor. In such circumstances, this Adjudicating Authority concludes that this present application deserves to be allowed. As the CIRP of the Corporate Debtor has come to an end on 24.08.2021 and the COC vide meeting dated 02.03.2022 has unanimously resolved to liquidate the Corporate Debtor. It is noted that a period of 863 days have passed since commencement of CIRP till the date of this Application. As such this Adjudicating Authority is left with no other choice but to liquidate the Corporate Debtor The liquidation of Corporate Debtor is ordered - application allowed.
Issues: Application for Liquidation under Section 33 of the Insolvency and Bankruptcy Code, 2016
Issue 1: Application for Liquidation The Applicant filed an application seeking an order of liquidation of the Corporate Debtor under Section 33 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) of the Debtor commenced on a specific date, and various meetings of the Committee of Creditors (CoC) were held to discuss the resolution process. The CoC ultimately passed a resolution recommending the liquidation of the Corporate Debtor. The Adjudicating Authority noted the passage of time since the initiation of CIRP and the decision of the CoC, leading to the conclusion that the application for liquidation deserved to be allowed. Issue 2: Legal Provisions and Consent The judgment highlighted Section 33(2) of the IBC, 2016, which mandates the Adjudicating Authority to pass a liquidation order upon the decision of the CoC to liquidate the corporate debtor. The Applicant, who was previously the Resolution Professional, gave written consent to act as the Liquidator of the Corporate Debtor. The judgment also mentioned that the Applicant had a valid Authorization for Assignment (AFA) as per records from the Insolvency and Bankruptcy Board of India (IBBI). Issue 3: Directions for Liquidation Process The Adjudicating Authority ordered the liquidation of the Corporate Debtor and appointed a specific individual as the Liquidator. Various directions were issued to the Liquidator, including complying with the provisions of the IBC, issuing public announcements, investigating financial affairs for transactions, communicating with regulatory authorities, and initiating the liquidation process as per the IBC regulations. The order also specified the timeframe for submitting reports and the cessation of the Moratorium under Section 14 of the IBC, with a fresh Moratorium under Section 33(5) coming into effect. Issue 4: Further Instructions and Compliance Additional directives were provided to the Liquidator, such as maintaining the Corporate Debtor as a going concern until a final order is issued by the NCLAT, taking steps to sell the Debtor as a going concern, and submitting reports within specified timelines. The order emphasized the importance of cooperation from financial creditors, the Corporate Debtor, and the Liquidator in facilitating the liquidation process effectively. Conclusion The judgment concluded by disposing of the application for liquidation, outlining detailed directions for the Liquidator to follow in carrying out the liquidation process in compliance with the IBC and relevant regulations. The decision was based on the CoC's resolution and the completion of the CIRP, necessitating the liquidation of the Corporate Debtor as per the provisions of the IBC.
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