9911796707
TMI Blog2021 (4) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to as the Corporate Debtor), seeking an order of 'Liquidation' of the Corporate Debtor. It is submitted that the Committee of Creditors in the fifth meeting held on 04.12.2019 has unanimously approved for "Liquidation" of the Corporate Debtor. Facts of the case: 2. The Applicant submits that a Petition under Section 7 of the I&B Code read with Rule 4 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 was admitted by this Tribunal vide its order dated 17th June 2019 (hereinafter referred to the "said Order"). 3. The Tribunal appointed the Applicant as the Interim Resolution Professional ("IRP") of the Corporate Debtor. The public announcement was made on 20th June 2019 vide Form A under Regulation 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred till date and estimated expenses. The Applicant proposed to appoint the following Registered Valuers (hereinafter referred to as the "Valuers") to determine the fair value and liquidation value of the assets of the Company: Sr. No. Name of the Valuer Type of Asset 1. Balaji & Associates Land and Building 2. Mr. Pradeep P. Land and Building 3. Mr. Prashant Jain Securities and Financial Assets 4. CA Dr. S P Das Securities and Financial Assets Since there is no plant and machinery to offer for valuation, CoC had resolved not to appoint any Valuers for valuation of the same (Meaning??). 8. The Applicant submits that the Valuation for the assets of the Corporate Debtor as per the report submitted by the Valuer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom FY 2009-10 to FY 2015-16 (7 years). The Forensic Auditor has informed that he is anticipating some major breakthrough in next few days and has observed major fund diversion from India to US subsidiaries and shall finalize and authenticate his report on receipt of Dun & Bradstreet reports of the 4 (four) USA companies. The COC members also approved appointment of advocate for filing the MA for release of lien of Income Tax on two fixed deposits. Further, no EOI was received till the last date of submission of EOI. Considering the company being closed and there no assets, except negligible piece of land which would hardly fetch any value the CoC members resolved not to extend the time frame for invitation of expression of interest. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of the CoC Members had voted against Applicant's appointment as liquidator. From the subsequent material submitted it is observed that Mr. Rajeev Muppidi from Axis Bank Limited vide its email dated January 15, 2020, has consented on behalf of the bank for the appointment of RP as Liquidator. 15. At this stage it is noted/observed that after the expiry of period almost six weeks from the date of voting on Resolution where RP had to be confirmed as Liquidator whereas on December 4, 2019, dissented on appointment of RP as Liquidator. The practice followed by bank is unacceptable and not a normal course of process. Therefore, we direct the bank to refrain from indulging in such practices. 16. This Bench, therefore, hereby orders as foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess of the Corporate Debtor; i. On initiation of the liquidation process but subject to section 52 of the Code, no suit or other legal proceeding shall be instituted by or against the Corporate Debtor save and except the liberty to the liquidator to institute suit or other legal proceeding on behalf of the Corporate Debtor with prior approval of this Adjudicating Authority, as provided in section 33(5) of the I&B Code. j. This liquidation order shall be deemed to be a notice of discharge to the officers, employees and workmen of the Corporate Debtor except to the extent of the business of the Corporate Debtor continued during the liquidation process by the Liquidator; k. The Court Officer shall forward a copy of this Order to (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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