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TMI Blog2021 (7) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... f the maximum period permitted for the completion of the CIRP is over and in the present matter more than 1000 days has passes since initiation of CIKP and as by operation of Sec. 33(1) IBC, the corporate debtor is necessarily required to be ordered for the liquidation under Sec. 33(1)(b) of the IBC, 2016 - even COC in its 18th meeting held on 04.01.2020 has with 95.29% majority has passed the resolution to liquidate the Corporate Debtor as no resolution plan was received for revival of the company and even the latest valuation of the assets have not attracted any resolution plan and further the commercial wisdom of the COC cannot be challenged which has approved the resolution for liquidation of the company. This Adjudicating Authority her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detail discussion, the CoC instructed the Applicant to put the resolution plan for e-voting on 10.12.2018 and accordingly was put to vote and CoC in the 13th Meeting dated 17.12.2018 approved the Resolution plan and further the same was filed as CA No. 09 of 2019 under Section 31 of the Code, for seeking approval of the resolution plan before this Adjudicating Authority. 4. Subsequently, the resolution applicant filed an application for withdrawal of the resolution plan and this adjudicating authority has granted liberty to the resolution applicant to approach the CoC to reconsider its decision for withdrawal of resolution plan and CoC with 95.28% gave their no objection on withdrawal of resolution plan by the resolution applicant. 5. Pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vited, and one Company namely "Lakshmi Float Glass Limited" furnished their proposal before the CoC, which was considered by the CoC in its 17th meeting dated 23.12.2019 and on perusal of the minutes of the meeting, it appears that the RP had floored a proposal before the CoC to conduct revised valuation of the assets of the Corporate Debtor as the valuation of the Company was last carried out in the year 2018 and in the meantime there has been and overall slow down in the economy and even the GDP has declined to the range of 2%-3%. And he further suggested that in order to get better analysis, the viability of the proposal of Lakshmi of Float Glass Limited, the CoC must be aware of the value of the assets in the current market co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Corporate debtor and to direct the RP and COC to explore other avenues of resolution, after considering the current liquidation value of the assets and to extent the CIRP period in order to ensure resolution of the corporate debtor. It is contended that the actual purpose of the Code is to maximize the value of the assets of the company and not to liquidate the Company, as liquidation is a matter of the last resort, stating that sending the corporate debtor for liquidation will be extremely detrimental to all the stakeholder involved, including the creditors and if the company goes into liquidation, the valuation of the assets of the Company will further decrease. 11. Upon which, this Adjudicating Authority vide order dated 20.01. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 14. Upon hearing the submissions made by the parties and going through the contents of the present Liquidation application and the provisions contained in the Code this Adjudicating Authority is of the view that as Sec. 33(1) of IBC, 2016 contemplates that this Tribunal can pass an order of liquidation of the corporate debtor, if the maximum period permitted for the completion of the CIRP is over and in the present matter more than 1000 days has passes since initiation of CIKP and as by operation of Sec. 33(1) IBC, the corporate debtor is necessarily required to be ordered for the liquidation under Sec. 33(1)(b) of the IBC, 2016. 15. Further, even COC in its 18th meeting held on 04.01.2020 has with 95.29% majority has passed the resolut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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