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TMI Blog2019 (5) TMI 1663X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, upon failure of resolution process there being no resolution plan and on completion of the statutory period of 270 days; Liquidation has to follow. Adherence to statutory requirement has to be in toto. When the language of the Code is clear and explicit the Adjudicating Authority must give effect to it whatever may be the consequence. In the factual background and in the absence of any resolution plan and for want of time beyond statutory CIRP period; there is no other alternative but to order for liquidation of the corporate debtor under Section 33 (I) (a) of the Code. The application is allowed by ordering liquidation of the corporate debtor, namely M/S Moser Baer Solar Limited in the manner laid down in the Chapter Il ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regulations) the Interim Resolution Professional made a publication dated 15.11.2017 in 'Form A' both in Financial Express (English) and in Jansatta (Hindi). 4. The Interim Resolution Professional further appointed two valuers i.e. M/S Ernst Young LLP and M/S RBSA Valuation Advisors LLP, to ascertain the liquidation value in terms of Regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The liquidation value of the assets of the Corporate Debtor based on average of two valuation reports obtained from the valuers is INR 72.425 crores. 5. In the first meeting of Committee of Creditors convened on 15.12.2017 the Interim Resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of 270 days have expired and no resolution plan in respect of the Corporate Debtor has been received; Committee of Creditors have refused to arm the Resolution Professional with the permission to file the application under Section 33(1) of the Code for liquidation. The reason given by the Committee of Creditors is that the proceedings in a writ petition before the Hon 'ble High Court of Delhi for realization of a sum of ₹ 270 crores by the corporate debtor are being prosecuted by the resolution professional on its behalf and it would be worthwhile to wait the outcome of that proceedings. It has also been stated that the learned Single Judge of the High Court in his judgement dated 25.02.2019 has rejected the claim made on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating Authority, is bound to pass order under Section 33 by initiating liquidation proceeding against the corporate debtor. In the said case it was further made clear that: Adjudicating Authority has no jurisdiction to proceed with the CIRP beyond the period of 270 days having not empowered under the provisions of the Code. 12. In matter of Haravtar Singh Arora Vs Punjab National Bank Ors. Company Appeal No. CA (AT) (Ins) 749/2018 the Honble Appellate Tribunal has also observed that: In the absence of approved resolution plan, the Adjudicating Authority had no option but to pass order of liquidation on completion of the period of 270 days. 13. Even the statutory provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Garg is directed to issue Public Announcement stating that the corporate debtor is in liquidation, in terms of Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016; c. The Registry is directed to communicate this Order to the Registrar of Companies, NCT of Delhi Haryana and to the Insolvency and Bankruptcy Board of India; d. The Order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and that a fresh Moratorium under Section 33(5) of the Insolvency and Bankruptcy Code shall commence; e. All endeavor shall be made by the liquidator to ensure that the business of Corporate Debtor is continued ..... X X X X Extracts X X X X X X X X Extracts X X X X
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