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TMI Blog2020 (3) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... the Code. Further directions for issuance of public announcement stating that Rama Krishna is in liquidation and requiring the order of liquidation to be sent to the authority with which Rama Krishna is registered are given below. Application disposed off. - CA NO. 1172/2019, CP (IB) NO. 286/CHD/PB/2018 - - - Dated:- 24-12-2019 - Ajay Kumar Vatsavayi, Judicial Member And Pradeep R. Sethi, Technical Member Rajender Kumar Jain, Resolution Professional for the Applicant. ORDER Pradeep R. Sethi, 1. The present application is filed under Section 33(1) (a) of the Insolvency and Bankruptcy Code, 2016 (Code) seeking liquidation of Rama Krishna Knitters Private Limited (Rama Krishna). The application is filed by the Resolution Professional (RP) on 26.11.2019. 2. It is stead that application under section 7 of the Code filed by Punjab National Bank for initiation of corporate insolvency resolution process (CIRP) of Rama Krishna was admitted by the Adjudicating Authority (AA) vide order dated 13.02.2019 and the applicant was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (COC) originally constituted by the IRP on 05.03.2019 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified therein, It shall (i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter; (ii) issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered. (2) Where the resolution professional, at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). 7. In the present case, the Adjudicating Authority has not received a resolution plan under Section 30(6) of the Code before the expiry of Insolvency Resolution Process period. We have discussed above that invitation for EOI was published in the newspapers on a number of occasions and that only one resolution plan was received from Swissline Intertrade Private Limited. The said Resolution Plan was considered by the COC in its 11th meeting held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion with the resolution professional, in the event an order for liquidation is passed under section 33. (2) The committee shall make a best estimate of the value of the liquid assets available to meet the liquidation costs, as estimated in sub-regulation (1). (3) Where the estimated value of the liquid assets under sub-regulation (2) is less than the estimated liquidation costs under sub-regulation (1), the committee shall approve a plan providing for contribution for meeting the difference between the two. (4) The resolution professional shall submit the plan approved under sub-regulation (3) to the Adjudicating Authority while filing the approval or decision of the committee under section 30 or 33, as the case may be. Explanation.-For the purposes of this regulation, 'liquidation costs' shall have the same meaning as assigned to it in clause (s) of sub-regulation (1) of regulation (2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 39C. Assessment of sale as a going concern. (1) While approving a resolution plan under section 30 or deciding to liquidate the corporate debtor under section 33, the committee may rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion that since Rama Krishna is not a going concern, the Liquidator may sell the assets in parcels or any other mode as mentioned in (a) to (f) of Regulation 32 of the IBBI (Liquidation Process) Regulations, 2016 (Liquidation Process Regulations, 2016). 13. In accordance with Regulation 39D of the CIRP Regulations, 2016, the COC considered the fees payable to the Liquidator during the liquidation process (Item No. 11.10.09). The relevant resolution was passed with 94.33 votes. 14. It is directed that all the directions/requirements and provisions of Chapter III of the Code and Liquidation Process Regulations, 2016 shall be strictly complied with by the Liquidator. Some of the directions are 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 transa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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