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TMI Blog2020 (1) TMI 1495X X X X Extracts X X X X X X X X Extracts X X X X ..... th Rule 11 of NCLT Rule, 2016, by inter alia seeking to pass an Order for Liquidating the Corporate Debtor and appointing a Liquidator to the Corporate Debtor under Section 33(2) of IBC 2016 and appoint Mr. Balady Shekar Shetty, Insolvency Professional having IBBI Registration No. IBBI/IPA-002/IP-N00213/2017-18/10665 as the Liquidator and the Corporate Debtor be Liquidated as a Going Concern as per Regulation 39(c) of IBBI (CIRP) Regulations, 2016 etc. 2. Brief facts of the case, as mentioned in the Application, which are relevant to the issue in question, are as follows: (1) This Adjudicating Authority, Bengaluru Bench, admitted the Petition of the Financial Creditor Karnataka State Financial Corporation under Section 7 of the Insolvenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tend the date of submission of EOI by Prospective Resolution Applicants by publishing revised Form G. During the meeting, the Committee Members suggested to give wider publicity to attract more Resolution Applicants. As such it was decided to publish the revised Form G in Economic Times - Bangalore, Mumbai, Chennai and Hyderabad editions and also in Vijaya Karnataka - a leading Kannada newspaper. In order to ascertain the permissible land use purposes, KIADB was approached to get the clarification on the same to get proper valuation of the landed property of the Company. (6) The Fifth meeting of the CoC held on 23.08.2019 stated that the CoC approved the action of the RP rejecting the EOI submitted by M/s Ambit Flowers Asset Reconstructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present a revised plan. (9) The Eighth meeting of the CoC held on 12.11.2019 stated that the RP mentioned that the Tribunal had granted the extension of time up to 6th January, 2020. The CoC was informed about the revised report received from the Forensic Auditor. RP further informed the members that the Resolution Applicant submitted a revised Resolution Plan, with a Bank Guarantee of Rs. 50 Lac, instead of a Bank Guarantee of Rs. 500 Lac as provided in the Process Document. He also informed that the RA requested that the balance Bank Guarantee would be submitted after approval of the Plan by CoC, but before the matter is placed before the Adjudicating Authority. The CoC observed that the Plan was less than the Liquidation Value as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Bankruptcy Code, 2016 and Regulations thereunder, in view of the fact that the CoC had earlier rejected the Resolution Plan submitted by the Resolution Applicant wherein the Resolution Plan amount being far less than the Liquidation Value of the Company and also since the Resolution Applicant vide their communication dated 20.11.2019 had withdrawn earlier plans submitted by them." "RESOLVED THAT the Committee of Creditors recommend appointment of Mr. Balady Shekar Shetty, Insolvency Professional having IBBI Registration No. IBBI/IPA-002/IPN00213/2017-18/10665 as the Liquidator, who has given his consent to carry out the Liquidation Process of the Company." (12) The e-voting commenced on Saturday, 30.11.2019, at 10.00 AM a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... editors, and was far less than the Liquidation Value as assessed by the Registered Valuers. Hence the CoC, at their meeting held on 28.11.2019 recommended for Liquidation of the Corporate Debtor. 3. Heard Mr. Balady Shekar Shetty, learned Resolution Professional and Mr. Ganesh R. Ghale for Income Tax. We have carefully perused the pleadings of the party and extant provisions of the Code and the Rules made thereunder and the Law on the issue. 4. As detailed supra, the Resolution Professional and the CoC of the Corporate Debtor have made best efforts to find a suitable Resolution Plan to revive the business of the Corporate Debtor. However, no suitable Resolution Plan is submitted so as to consider the same by the CoC. Therefore, there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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