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TMI Blog2021 (10) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... tor of the Corporate Debtor. This Authority has no reason before it to take a contrary view in terms of Section 33(1)(a) of the Code. Therefore, it has no option than to pass an order for liquidation of the Company in the manner laid down in Chapter III of the Code. Corporate Debtor is ordered to be liquidated - application allowed. - IA No. 244 of 2021 in C.P. (IB) No. 1661/MB/2018 - - - Dated:- 5-8-2021 - Bhaskara Pantula Mohan, Actg. President And Narender Kumar Bhola, Member (T) For the Appellant : Amit Tungare ORDER Bhaskara Pantula Mohan, Actg. President 1. This is an application filed by the Resolution Professional Mr. Alkesh Rawka under Section 33 of the Insolvency and Bankruptcy Code, 2016 (the Code) read w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an Application in MA No. 3077 of 2019 for extension of CIRP period. The same was allowed by this Bench vide order dated 18.09.2019 by extending the period of CIRP by 90 days. f. The Applicant had issued Form-G on 19.11.2019, inviting expression of interest (EOI) from prospective resolution applicants (PRAs). Thereupon Applicant received only one EOI from Invent ARC Private Limited (PRA) on 02.12.2019. g. The Applicant submitted that after reviewing the financial statement it was found that the PRA does not fall under the eligibility criteria for submitting the Resolution Plan. Thereafter the Applicant requested CoC members to revise the eligibility criteria. Therefore, the CoC members approved the same and ratified the changes i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng held on 16.01.2021. After discussion, the CoC members rejected the plan submitted by the PRA and resolved to proceed for liquidation of the Corporate Debtor as per provisions of the section 33 of the Code. 4. The resolution for liquidation was approved by the CoC with 98.77% voting shares in its 10th extended meeting and the said resolutions are as below: Resolution 1: Resolved That Subject to the rejection of the resolution plan by the CoC members, the approval of members of Committee of Creditors be and is hereby accorded to proceed for Liquidation of Corporate Debtor pursuant to Section 33 of the Insolvency and Bankruptcy Code, 2016 on going concern basis pursuance to Regulation 39C of CIRP Regulations, 2016 that the liqu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of the rejection of the resolution plan by the dissenting financial creditors . 7. Section 33 of the Code reads as below: 33. Initiation of Liquidation (1) Where the Adjudicating Authority, (a) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan under sub-section (6) of section 30; or (b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, it shall (i) pass an order requiring the corporate debtor to be liq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, no suit or other legal proceeding shall be instituted by or against the corporate debtor: Provided that a suit or other legal proceeding may be instituted by the Liquidator, on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority. (6) The provisions of sub-section (5) shall 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. (7) The order for liquidation under this section shall be deemed to be a notice of discharge to the officers, employees and workmen of the corporate debtor, except when the business of the corporate debtor is continued during the liquidation process by the Liqu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions as may be notified by the Central Government in consultation with any financial sector regulator. e) 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. f) 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 Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016. g) Personnel connected with the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as will be required for managing its affairs. h) The Liquidator shall be entitled to such fees as may be specified in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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