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TMI Blog2021 (5) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... n filed by Sargam Vision Private Limited, one of the Resolution Applicants (RA) praying for direction upon the Resolution Professional (RP) to conduct revaluation of Divine Alloys & Power Co. Ltd., the Corporate Debtor. 3. IA (IB) 136/KB/2020 is an application made by the RP for liquidation of the Corporate Debtor on the ground that no Resolution Plan was approved by the Committee of Creditor (CoC). 4. This Adjudicating Authority vide order dated 07.03.2019 directed initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor and appointed the Applicant herein as the Interim Resolution Professional. 5. The RP issued a Request for Resolution Plan (RFRP) to the RA, the RA submitted their Resolution Plan on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly crippling itself. Under such circumstances, the Applicant prays that the RP be directed to conduct revaluation of the Corporate Debtor. 9. The RP filed his affidavit in reply and submitted that the Applicant did not have any cause of action against the RP; the application should be dismissed in limine. He submitted that the valuation of assets of the Corporate Debtor are done in order to determine the fair value and liquidation value in accordance with regulation 35 of the Insolvency and Bankruptcy Board of India (Corporate Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulation"), and not for determining the future income prospects of the resolution applicant. 10. The RP has relied on para 27 of the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the CoC had been repeatedly requesting the RA to increase the amount proposed and the RA had increased the said amount by a sum that was not acceptable to the CoC. The CoC had therefore decided to send the CoC in liquidation and an application was filed before this Adjudicating Authority. 14. The application for liquidation was heard from time to time by this Adjudicating Authority. The Adjudicating Authority directed the Resolution Professional to place on record the reason for rejection of the Resolution Plan when the value offered was more than the liquidation value on 20.02.2020 and gave an opportunity to resolve the issue related to it on 04.03.2020. 15. It is also observed from the IA (IB) 136/KB/2020 that the RA submitted a rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en observed by this Adjudicating Authority in the order dated 02.02.2021 in IA No. 1074/KB/2020, there has been no progress in the matter. 19. The Code has a two-pronged objective, viz., (i) resolution of the Corporate Debtor while maximising the value of its assets; (ii) in a time-bound manner. One cannot be sacrificed for the other. The Adjudicating Authority had passed the order initiating the CIRP on 07.03.2019. Over two years down the lane, there is still no resolution plan in sight. The time component in the object of the Code cannot be ignored for so long to achieve the resolution of the Corporate Debtor. Time is an essential but conveniently overlooked aspect of the resolution sought to be achieved under the IBC. 20. Section 33(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2019. d. The Liquidator shall initiate liquidation process as envisaged under Chapter-III of the Code and the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016. e. Public Notice shall be issued in the same newspapers in which advertisements were issued earlier, i.e., in 'Times of India' (English) and 'Prabhat Khabar' (Hindi) of Jharkhand Edition and 'Ananda Bazar Patrika) (Bengali) and the 'The Telegraph' (English) of Kolkata edition of the said newspapers stating that the corporate debtor is in liquidation. f. All the powers of the Board of Directors, and of key managerial persons, shall ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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