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TMI Blog2020 (2) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... ating Authority ought not transgress into the commercial decision and jurisdiction of the CoC. Upon failure of resolution process there being no acceptable resolution plan and as per decision of the CoC with requisite majority voting share; Liquidation has to follow in terms of sub-section 2 of Section 33 of the Code. 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 maybe the consequences - in the absence of any acceptable resolution plan; there is no other alternative but to order in conformity with the requisite majority decision of the Committee of Creditors for liquidation of the corporate debtor under Section 33 (2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Regulation 17, of the CIRP Regulations, Committee of Creditors was constituted with seven financial creditors. 4. In the first meeting of the Committee of Creditors held on 08.03.2019, it was resolved that the Interim Resolution Professional Mr. Rohit Sehgal shall continue to function as the Resolution Professional of the Corporate Debtor. 5. In terms of Regulation 27 of the CIRP Regulations, the Resolution Professional appointed two registered valuers namely Finval research and Crest Capital Group Private Limited, to determine the Liquidation and Fair value in accordance with Regulation 35 of the CIRP Regulations. 6. With the approval of the Committee of Creditors and in terms of Section 25(2) (h) of the Code, the Resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. As the CIR Process was expiring on 06.08.2019, resolution for extension of further 90 days period was placed before CoC for consideration. However, in the sixth meeting of CoC held on 03.08.2019, the resolution for extension of CIR period was failed with 64% of the voting share and the members of CoC decided as follows: Resolved that in the absence of any acceptable resolution plan in the Corporate Insolvency Resolutions Process of Santosh Overseas, the Corporate Debtor be liquidated and an application be filed before the Adjudicating Authority under Section 33(1) of IBC, 2016 Resolved Further that the name of Mr. Rohit Sehgal, on Insolvency Professional (IP Registration No. IBBI/IPA-001/IP-P00528/2017-18/1095) Partner, AAA In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e competent authority for taking appropriate commercial decision. Adjudicating Authority ought not transgress into the commercial decision and jurisdiction of the CoC. 14. As the aforesaid factors are technical in nature, which can be determined by experts like the 'financial creditors', the adjudicating authority cannot sit in appeal over the decision of the 'CoC. Commercial decision of CoC is not open to judicial review. Even if extension of period is granted at this belated stage, it will not serve useful purpose in absence of any valid and acceptable resolution plan. 15. It is pertinent to refer to the statutory provisions provided in sub-section (2) of Section 33 of the Code which mandates that where the resolution p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Rohit Sehgal, 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. The Liquidator is directed to proceed with the process of liquidation in the manner laid down in Chapter III of Part II o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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