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TMI Blog2020 (10) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Plan has been received by this Authority under Sub-section (6) of Section 30 of the I B Code, 2016, before the expiry of the maximum period of CIR Process, in exercise of powers conferred under Sub-Clauses (i) (ii) and (iii) of Clause (a) of Sub-Section (1) of Section 33 of the I B Code, 2016, this Authority proceeds to pass the Liquidation Order - Application disposed off. - MA/1413/2019 in CP/422/IB/2018 - - - Dated:- 5-5-2020 - R. Varadharajan, Member (J) and Anil Kumar B., Member (T) For the Appellant : Party-in-Person ORDER R. Varadharajan, Member (J) 1. MA/1413/2019 in CP/422/IB/2018 has been filed by the Resolution Professional namely J. Manivannan, under Section 33(2) of the Insolvency and Bankruptcy Code, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09.11.2018 the IRP has received claims from two Financial Creditors namely Punjab National Bank (PNB) and Edelweiss Asset Reconstruction Company Limited (EARC) respectively. It is averred that after scrutiny of the claims received, the IRP constituted the Committee of Creditors (CoC), on 26.11.2018 as per Section 21 of the I B Code, 2016. 6. In the 1st Meeting of the CoC held on 05.12.2018, one of the CoC members namely PNB having 52.48% voting rights proposed to replace the IRP, however, the resolution placed before the CoC for changing of IRP for appointing new RP was defeated as it could not get the prescribed voting limit i.e. 66%. Therefore, this Authority vide order dated 25.01.2019 in MA/43/2019 in CP/422/IB/2018 has appointed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lution Plan within 60 days and also suo-moto extended the time period of CIR Process by 60 days beyond 180 days. 10. Subsequent to the Order dated 01.05.2019 the Resolution Professional reviewed the Resolution Plan submitted by the Promoters-Resolution Applicant on 13.06.2019 and fixed the CoC meeting to be held on 26.09.2019. In the meantime, the Resolution Professional approached this Authority for extension of the remaining period of CIR Process for 30 days and this Authority vide Order in MA/643/2019 dated 27.06.2019 has granted the extension as prayed for 30 more days. 11. In the interregnum, one of the CoC members namely PNB filed an Appeal before the Hon'ble NCLAT challenging the Order passed by this Authority on 01.05.2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submit a revised Resolution Plan. 14. In the 6th Meeting of the CoC held on 14.11.2019 the revised Resolution Plan submitted by the Promoters-Resolution Applicant was placed before the CoC by the Resolution Professional for the evaluation and consideration. However, the representative from the PNB refused to consider the Plan since the Resolution Plan Value is very low compared to the amount due to it thereby involving a huge hair-cut and further they have demanded around ₹ 24 Crores against their outstanding dues. 15. It is stated that the Resolution Professional sought justifications from PNB for dissenting the Plan to be placed before the NCLT and the Hon^ble NCLAT by way of a status report, however, the PNB reiterated the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso the decision of the Hon'ble Supreme Court as held in Arcelormittal India Private Limited -vs- Satish Kumar Gupta Ors. in Civil Appeal Nos. 9402-9405 of 2018 and subsequently also reiterated in other judgements including Committee of Creditors of Essar Steel India Limited -vs- Satish Kumar Gupta Ors. in Civil Appeal Nos. 8766-67 of 2019 wherein it has been held that resolution of insolvency should be the norm and liquidation to be an exception it was explored during the hearings to break the deadlock situation prevalent between the two financial creditors as well as based on the strength of the representation made by the Resolution Professional that the Corporate Debtor is a viable setup. However, the efforts were not successful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0534/2017-2018/11695] Plot No. 53B, 8/330, Vishalakshi Nagar, Fourth Cross Street, Santhosapuram, Chennai,Tamil Nadu - 600 073 Ph: 91-9962378774Email ID: [email protected] is appointed as the Liquidator of the Corporate Debtor. He shall strictly act in accordance with the provisions of I B Code, 2016 and the attendant Rules and regulations including Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 as enjoined upon him. b) Mr. J. Manivannan shall issue the public announcement that the Corporate Debtor is in liquidation. In relation to officers/ employees and workers of the Corporate Debtor, taking into consideration Section 33(7) of IBC, 2016, this order shall be deemed to be a notice of discharge. c) The Liquid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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