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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 ..... e days upon submission on behalf of the RA that they were desirous of substantially increasing their financial offer. It is seen that 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. Section 33(2) of the Code enjoins the Adjudicating Authority to pass an order for liquidation of the Corporate Debtor where the resolution professional, at any time during the CIRP but before confirmation of the resolution plan, intimates the Adjudicating authority of the decision of the CoC approved by not less than s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Plan on 20.08.2019, however, the CoC sought for certain clarifications and wanted the offer amount be enhanced, the RA submitted its enhanced offer on 22.09.2019, the CoC further asked the RA to enhance it offer on various occasions and the RA enhanced its offers on 13.11.2019, 23.11.2019, 13.02.2020 and 19.03.2020. The final offer submitted before the CoC on 19.03.2020 was that of ₹ 102 crore. 6. Mr. Joy Saha, learned Senior Counsel for the applicant, submits that the planet was hit by the Covid-19 pandemic, due to which the market scenario changed globally. Economies underwent drastic changes, therefore, the valuation of the Corporate Debtor done prior to March, 2020 would not reflect its true worth. 7. The Applicant has done ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on para 27 of the Supreme Court's judgment in Maharashtra Seamless Limited v. Padmanabhan Venkatesh Ors. Civil Appeal Nos. 4967-4968 of 2019 in order to buttress his argument that the object behind valuation process is to assist the CoC to take a decision on the resolution plan. He further submitted that the valuation report is only for the CoC members and the RA has nothing to do with the valuation of the assets of the Corporate Debtor for submission of the Resolution Plans. He reiterated that the Applicant had no locus standi to talk of the valuation. 11. He submitted that there is no provision in the Code for revaluation of the Corporate Debtor. The RA wants revaluation only so it can revise its Resolution Plan. The valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2020 that the RA submitted a revised resolution plan, again on 19.03.2020. However, on 21.04.2020, the RA through an email requested that the Resolution Plan be kept 'on hold' due to economic downside and that the RA would submit a fresh plan after the lockdown is over. The RA wrote again on 23.09.2020 requesting further extension of time for submission of the Resolution Plan. The CoC extended the last date of submission of the Resolution Plan till 15.10.2020. 16. On 07.12.2020, the RP received an email from the RA containing a Resolution Plan. After vetting the Resolution Plan and seeking clarifications thereupon, the RP share the Resolution Plan with the CoC on 06.01.2021 via email. Twenty-fourth CoC meeting was held on 11.01.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hieved under the IBC. 20. Section 33(2) of the Code enjoins the Adjudicating Authority to pass an order for liquidation of the Corporate Debtor where the resolution professional, at any time during the CIRP but before confirmation of the resolution plan, intimates the Adjudicating authority of the decision of the CoC approved by not less than sixty-six percent of the voting share, to liquidate the Corporate Debtor. In the present case, the CoC has, by 97.21% votes, resolved to liquidate the Corporate Debtor. 21. In the light of aforementioned discussion, we are not inclined towards granting the prayer for revaluation of the Corporate Debtor. 22. Mr. Rajesh Kumar Agrawal, RP, has filed his written consent to act as liquidator. 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Board of Directors, and of key managerial persons, shall cease to exist in accordance with section 34(2) of the Code. All these powers shall henceforth vest in the Liquidator. g. The personnel of the corporate debtor are directed to extend all assistance and co-operation to the Liquidator as required by him in managing the liquidation process of the corporate debtor. h. 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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