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TMI Blog2020 (9) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, during which period the prospective Resolution Applicant can very well submit his Scheme under Section 230 of the Companies Act, 2013 - In terms of Section 240-A(l) notwithstanding anything to the contrary contained in this Code, the provisions of Clause (c) and (h) of Section 240-A shall not apply to the Resolution Applicant in respect of CIRP of any Micro, Small and Medium Enterprises (MSME) . It is seen that in the Review Committee for wilful defaulters held on 12.03.2018, the sole member of CoC (Financial Creditor - Indian Overseas Bank) has declared the promoter-director as 'wilful defaulter'. This Tribunal is of the opinion that there is no need to interfere with the decision of the CoC as communicated by the Resolution Professional and hence proceeds to consider the application made under Section 33 for liquidation of the Corporate Debtor. Therefore, application filed by the Promoter-Director is liable to be dismissed . Application filed by the Promoter Director stands dismissed - application filed for initiation of Liquidation process of the Corporate Debtor is hereby allowed. - MA/1218/2019 in IBA/265/2019 and IA No. 260/2020 in IBA/265/2019 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om Form-H filed by the Resolution Professional, it is evident that the fair value and liquidation value of the Corporate Debtor are as follows; S. No Particulars Valuation Amount 1 Fair Value ₹ 12,59,67,291/- 2 Liquidation Value ₹ 7,97,00,000/- 5. It is also evident from the records that the 2nd COC meeting held was on 15.05.2019, in which the CoC has decided to issue invitation for Expression of Interest and the invitation for EOI in Form-G was published in newspapers on 05.06.2019 for inviting prospective resolution applicants. The counsel for the Applicant/RP submitted that in the 6th CoC meeting held on 21.08.2019 extension of time to submit resolution plan from one Malbar Ispat Limited was discussed. Considering the fact that Resolution Applicant has failed to come up with a plan till date though sufficient time was given on earlier three occasions from the day of publishing Form-G, the CoC members opined that the resolution applicant has no intention of submitting the plan at all. Further the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... professional advice, the Intervenor/applicant was not able to challenge the said rejection at that time. The Intervenor/Applicant contended that the RP entirely relied on the copy of minutes of the Review Committee of Sole CoC Member Bank for 'wilful defaulters' held on 12.03.2018 for declaring the Intervenor/Applicant ineligible for submitting Eol in terms of Sub Section (b) of Section 29A of IBC, 2016. 9. Apropos to the contention made by the Learned Counsel for the Interevenor / Applicant in IA/260/2020, this Tribunal is of the view that, since the Corporate Debtor is an MSME, even if the promoters- directors have been declared as 'wilful defaulters', they can apply under the provisions of Section 230 of the Companies Act, 2013 as they are exempted from Section 29A of IBC, 2016. Even after the declaration of initiation of liquidation proceedings, the promoters- directors still have a chance to tender definite plan for taking over the company as a going concern or under the provisions of Section 230 of the Companies Act, 2013. The Regulation 2B of the IBBI (Liquidation Process) Regulations, 2016 contemplates that a period of 90 days has to be provided for compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BC. 22/20.16.003/2015-16 dated 01.07.2015. 11. Hence, in view of the discussions made supra, this Tribunal is of the opinion that there is no need to interfere with the decision of the CoC as communicated by the Resolution Professional and hence proceeds to consider the application made under Section 33 for liquidation of the Corporate Debtor. Therefore, IA/260/IB/2020 filed by the Promoter-Director is liable to be dismissed . 12. Learned Counsel for the Resolution Professional submitted that as per the resolution passed by the 6th CoC approving the RP to act as a Liquidator is also extracted and that the written consent by the proposed Liquidator has been filed. On perusal it is seen that the RP has given his written consent to act as a Liquidator of the Corporate Debtor, if appointed by this Tribunal In the circumstances, Mr. Ravindranath Narayana Rao, having Reg. No IBBI/IPA-001/IP- P00645/2017-18/11099 is appointed as the Liquidator of the Corporate Debtor to carry out the liquidation process subject to the following terms of the directions: a) The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 and the attendant Rules and regulations inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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