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TMI Blog2019 (11) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... y and Bankruptcy Code, 2015 seeking liquidation order of the Corporate Debtor. 3. CP (IB) No.160/Chd/Pb/2018 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) for initiating the Corporate Insolvency Resolution Process (CIRP) by Mahavir Traders in the case of Gian Chand & Sons Private Limited (Corporate Debtor) was admitted vide order dated 30.10.2018. Moratorium was declared and Mr.Anjum Goyal, registered Resolution Professional was appointed as the Interim Resolution Professional (IRP). Subsequently, application was filed for replacement of the IRP with Mr.Rajeev Bhambri. Vide order dated 12.12.2018, Shri Rajeev Bhambri was appointed as the Resolution Professional. 4. It is stated in the application that the CIRP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e meeting of CoC on 19.07.2019 it is stated that due to low capacity utilization and nonavailability of working capital, the operations of the Corporate Debtor were incurring cash losses in the recent past and the manufacturing activities need not to be carried out during liquidation to avoid further losses and therefore, the Corporate Debtor would not be liquidated as a going concern. This matter may be considered further in the liquidation process. 7. It is stated that in the meeting of the CoC on 19.07.2019, the name of Shri Rajeev Bhambri, Resolution Professional was recommended for appointment as the Liquidator and he has submitted his consent for appointment as the Liquidator. 8. It has been prayed that the order be passed for l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1)." 13. In the present case, the application is filed by the Resolution Professional on 25.07.2019 during the CIRP process and before confirmation of the resolution plan. The decision of the CoC to liquidate the Corporate Debtor is approved by the CoC with 99.87% of the voting share and therefore, the requirement of approval of not less than 66% of the voting share is satisfied. 14. In view of the satisfaction of the conditions of Section 33 (2) of the Code, the liquidation order as referred to in sub clauses (i), (ii) and (iii) of clause (b) of Section 33 (1) of the Code is being passed. 15. Section 34 (1) of the Code states that where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de. Some of the directions are noted as under:- (i) That as per Section 33(5) of the Code and subject to Section 52 of the Code, no suit or other legal proceedings shall be instituted against the corporate debtor; Provided that a suit or other legal proceedings may be instituted by the liquidator on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority; (ii) That the provisions of sub-section (5) of Section 33 of the Code shall not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator; and (iii) That this order of liquidation under Section 33 of the Code shall be deemed to be a notice of discharge t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and principal office, if any, of the corporate debtor and any other location where in the opinion of the liquidator, the corporate debtor conducts material business operations; (b) on the website, if any, of the corporate debtor; and (c) on the website, if any, designated by the Board for this purpose." 20. In accordance with Regulation 13 of the Liquidation Process Regulations, 2016, the 'Liquidator' shall file his preliminary report within 75 days and to file regular progress reports as per Rule 15 of the Liquidation Process Regulations, 2016 every fortnightly thereafter. 21. It is clarified that the Financial Creditors are not debarred from having recourse to enforce the personal guarantees and to take proper steps in this re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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