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TMI Blog2018 (10) TMI 1522X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in this case the prayer for suspension of voluntary liquidation can be allowed so that the Company can take steps to have recourse’s under section 271 of the companies Act, 2013 or can take steps for compulsory liquidation by filing an application under section 10 of I & B Code. This application cannot be converted as prayed for. In view of the above said discussion the application is liable to be allowed limiting the prayer for suspension of the voluntary liquidation. In the result the voluntary liquidation of the Applicant Company namely Central Inland Water Transport Corporation Ltd. is hereby suspended as per Reg.40(2) of Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. The prayer for co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeding under Section 271 of the Companies Act, 2013. The grounds the applicant raised in the application in brief is the following:- (a) The corporate debtor was engaged in river services between Calcutta and Assam and Calcutta and Bangladesh and used to undertake movement of oil from Haldia to Budge/Paharpur for the Indian Oil Corporation. Further, it also provided for services such as lighterage, stevedoring operations, ship building, ship repairing and other engineering services. (b) Due to inherent limitation and infrastructure bottlenecks, the operations of the Corporate Debtor could never become viable and had been incurring losses since inception. In line with the decision of the Government to revitalise sick public sector un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdinary General Meeting was also called for and shareholders of the corporate debtor passed a special resolution, approving the voluntary liquidation of the corporate debtor on 19/12/2017 ( Liquidation Commencement Date ) and appointing the Applicant as the Liquidator. The extract of minutes of the Board Meeting and General Meeting is annexed as Annexure A . (f) To satisfy the pre-condition laid down under Section 59(3)(a) of the Code, a declaration of solvency was given by Mr. Chandramani Rout (Director, Engg., Ministry of Shipping), and Mr. Balaji Arun Kumar, being the majority of the directors of the corporate debtor. Copy of the said declaration is annexed as Annexure B . 3. Upon appointment of Liquidator, public announcemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rust and Garden Reach Shipbuilders and Engineers Ltd. to satisfy the requirement of 66% of the creditors. 5. In addition to the above said ground the applicant has submitted that the right course of action in the instant case would be to make an application u/s. 271 of the Companies Act, 2013 to the Adjudicating Authority since the corporate person is not at all solvent which is a mandatory requirement for enabling it to have a voluntary liquidation. Since the liquidator realised that the debt due to the creditors could not be discharged in total and the declaration of the Directors as if the company is solvent found not true as per the balance sheet and profit and loss account as on 19/12/2017, he suggested by way of an e-mail to the Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liquidation in the instant case, that is the status of solvency was doubtful and dubious. He failed to prepare a final report because he could not dispose of the assets of the corporate debtor to the satisfaction of the creditors and because of the pending litigation against the corporate debtor as per Regulation 38(1) of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. A voluntary liquidation can only be done in a case the corporate person discharged its debts to the satisfaction of the creditors and if there is no litigation is pending against the corporate debtor. Both these ingredients are to to be satisfied under Regulation 38 of the Insolvency and Bankruptcy Board of India (Voluntary Liqu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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