2023 (6) TMI 315 - AT - Insolvency and Bankruptcy

Seeking Liquidation of the Corporate Debtor Company - HELD THAT - M/s. Cantors Fitzgerald is ready and willing to fund any settlement even during the Liquidation Process. In the event, any such settlement is able to be executed, with funds infused, keeping in view the spirit and intent of the Code, the Adjudicating Authority shall proceed in accordance with law giving 14 days time peremptorily, of course from the date of this Order failing which, this Tribunal does not find any tangible ground(s) to interfere with the Order of Liquidation as more than sufficient time was granted by the Adjudicating Authority/Tribunal to the Appellant herein to settle the matter. Appeal disposed off.

Summary

Issues:
The judgment involves the liquidation of a corporate debtor company under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, and the challenges raised by the suspended director of the corporate debtor company regarding the liquidation order.

Summary:
The appeal was filed against an order allowing the liquidation of the corporate debtor company. The Corporate Insolvency Resolution Process (CIRP) was initiated, but the Resolution Plan was not accepted by the Committee of Creditors (CoC) as it was conditional. Subsequently, an One Time Settlement (OTS) proposal was received, leading to various adjournments and attempts to settle the matter.

The Adjudicating Authority allowed the liquidation application under Section 33(1) as no resolution plans were pending, and the CIRP period had expired. The suspended director argued for more time to settle the matter, emphasizing efforts to secure financial assistance for an OTS proposal. References were made to Supreme Court judgments highlighting the objective of reviving corporate debtors and making them a going concern before resorting to liquidation.

The Liquidator opposed further delays, stating that multiple opportunities were given for settlement but no agreement was reached. The timeline of events leading to the liquidation order was detailed, showing repeated adjournments and attempts to make payments for settlement. Cantor Fitzgerald expressed readiness to fund any settlement even during the liquidation process.

In light of the circumstances and the ample time granted for settlement, the Adjudicating Authority's liquidation order was upheld. The Tribunal emphasized the importance of proceeding in accordance with the law and gave a final opportunity for settlement within 14 days from the date of the order. The appeal was disposed of with no costs, and any pending interlocutory applications were closed.