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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 ..... orporate debtor, Central Inland Water Transport Corporation Ltd. praying for suspension of the voluntary liquidation process initiated by the company. 2. The corporate debtor, Central Inland Water Transport Corporation Ltd., has initiated voluntary liquidation u/s. 59 of the I & B Code, 2016 by appointing Mr. Vinod Kumar Kothari as the Liquidator. While voluntary liquidation proceedings of the corporate person has been initiated by the Ld. Liquidator, it is observed that the corporate debtor has several pending litigation, and that claims against the corporate debtor exceed the value of its assets. According to the Liquidator the very pre requisite for voluntary liquidation that the company is to be solvent is absent in the instant case an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity on the proposal of dissolution of Central Inland Water Transport Corporation Limited and specified therein the manner of disposal of assets of the corporate debtor. (d) Thereafter, the Board of Directors of the corporate debtor passed a resolution on 25/11/2017 and approved voluntary liquidation of the corporate debtor in compliance with the provisions of the Code and Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (In short, Voluntary Liquidation Regulations, 2017), subject to the receipt of approval of the shareholders of the corporate debtor within 21 days from the said Board Resolution. (e) On efflux of the said period of 21 days, the consent of the shareholders could not be obtained a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered recoverable. Letters were sent to all the debtors for realisation of dues. However, while some of the debtors did not reply to the same, other responded saying that debt is not recognized by them. A summary of assets are annexed with the application. 4. As per Section 59(3)(c) a consent letter obtained from Kolkata Port Trust and Garden Reach Shipbuilders and Engineers Ltd. with the conditions that their claims to the tune of Rs. 99.16 Crores and Rs. 24.29 Crores respectively payable to them. The Voluntary Liquidation Regulations require a resolution for voluntary liquidation to have a consent of at least 66% in value of the creditors, while the creditors of the company include several employees who have filed claims against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was initiated as per special resolution passed in the EOGM dated 12/12/2017 and in the alternative prays for conversion of this application under Section 271 of the Companies Act, 2013 for enabling the company to have voluntary winding up. 7. Heard the Ld. Liquidator at length. Perused the records and written submission. 8. This is a case in which Central Inland Water Transport Corporation Limited initiated voluntary liquidation of the company u/s. 59 of the Insolvency and Bankruptcy Code, 2016 by appointing Mr. Vinod Kumar Kothari as the Liquidator. However, on commencement of the liquidation process in the capacity of a Liquidator, he observed that the corporate debtor has several pending litigation and that the claim against the corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to me that in the given set of facts of the case in hand compulsory liquidation or winding up order cannot be passed. Both proceedings are different and the requirements to be meted out are also different. The resolution passed by the members in the EOGM produced is for passing voluntary liquidation. Being satisfied that voluntary liquidation cannot be passed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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