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TMI Blog2021 (9) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... ternational Limited (Corporate Debtor). 2. The facts leading to the Application are as under. a. Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by this Tribunal vide order dated 19.09.2019 upon admission of a Petition under Section 9 of the Code and ms. Asha Manajit Ghoshal was appointed as the Interim Resolution Professional (erstwhile IRP). b. The erstwhile IRP made a public announcement for inviting claims from the creditors of the Corporate Debtor. After receipt of the claims, the erstwhile IRP constituted the Committee of Creditors (CoC) of the Corporate Debtor and filed the report for the same with this Tribunal on 16.10.2019. c. The CoC in its 1st meeting held on 19.10.2019 resolved to app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lution Plan and he proposed to the CoC to start with fresh EOI process which was approved by the CoC in its 7th meeting held on 15.06.2020. Accordingly, Applicant reissue the Form-G on 29.06.2020. In view of the same the Applicant has received 3 EOIs from PRAs namely, Prudent ARC Limited, Midland Polymers Limited and Trident Limited. h. The applicant submitted that valuers and transaction auditor were appointed by the erstwhile IRP and the Applicant with the approval of CoC. i. The Applicant submitted that the plans received from the PRA was non-compliant to the provisions of the Code and PRA failed to deposit the amount towards EMD II, therefore the CoC decided to proceed with liquidation Process. j. The CoC in its 11th and 12th meet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons, 2016 and other relevant provisions of the Insolvency and Bankruptcy Code, 2016, the Committee of Creditors hereby approved the estimate Liquidation cost of Rs. 73,46,500/- plus applicable GST". 3. Hence the Applicant came up with present application on 28.10.2020. 4. The Hon'ble Apex Court in K. Sashidhar v. Indian Overseas Bank and Ors: (2019) 148 LA 497 (SC) inter alia held that. "The Adjudicating Authority (NCLT) is not expected to do anything more; but is obligated to initiate liquidation process under section 33(1) of I & B Code. The legislature has not endowed the adjudicating authority (NCLT) with the jurisdiction or authority to analyse or evaluate the commercial decision of the CoC much less to enquire into the justnes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudicating Authority is contravened by the concerned corporate debtor, any person other than the corporate debtor, whose interests are prejudicially affected by such contravention, may make an application to the Adjudicating Authority for a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). (4) On receipt of an application under sub-section (3), if the Adjudicating Authority determines that the corporate debtor has contravened the provisions of the resolution plan, it shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). (5) Subject to section 52, when a liquidation order has been passed, no suit or other legal proceeding s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d group the assets and liabilities, which according to its commercial considerations, ought to be sold as a going concern under clause (e) or clause (f) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. (3) The resolution professional shall submit the recommendation of the committee under sub regulations (J) and (2) to the Adjudicating Authority while filing the approval or decision of the committee under section 30 or 33, as the case may be." 7. From the above, it would appear that despite all possible steps as required under the Code taken during the CIRP, the CoC did not receive any viable resolution plan/proposal for revival of the Company. The CoC in its wisdom has resolved wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his shall however not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. f) All powers of the Board of Directors, Key Managerial Personnel and partners of the Corporate Debtor shall cease to have effect and shall be vested in the Liquidator. g) The Liquidator shall exercise the powers and perform duties as envisaged under Sections 35 to 50 and 52 to 54 of the Code read with the Liquidation Process Regulations. h) Personnel connected with the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as will be required for managing its affairs. i) This Order shall be deemed to be a notice of discharge to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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