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TMI Blog2021 (11) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... is not approved by CoC, the provision of section 33 of IBC has to kick in, with no option but to go for liquidation of the Corporate Debtor. The catena of judgments cited by the Learned Counsel for Appellant, relate to cases where applications were filed under section 12A of the IBC. In the instant case, no application was filed under Section 12A of IBC since there was no OTS that was acceptable to the Respondent No. 2 bank. Hon ble Supreme Court has held in many matters that the decision of the COC, taken in its commercial wisdom, should prevail unless such a decision has some legal infirmity. The impugned order passed by the Adjudicating Authority for liquidation of the corporate debtor, need not be interfered - appeal dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was decided to extend timeline in order to get more applications for resolution plans. In the 5th meeting of CoC, it was decided not to publish the EOI again and to obtain Resolution Plan from the only prospective Resolution Applicant, who had expressed interest earlier. The prospective Resolution Applicant named IRC Natural Resources Private Limited submitted a Resolution Plan on 7.10.2020, but later vide e-mail dated 29.10.2020 it communicated to the Resolution Professional about its decision to withdraw the Resolution Plan and sought refund of the Earnest Money Deposit (EMD). 4. In the 6th meeting of the CoC on 31.10.2020, the legal representative of the Appellant informed that it had submitted a One Time Settlement (OTS) proposal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 33 of IBC for obtaining liquidation orders from the Adjudicating Authority. The matter was listed on 11.8.2021 and reserved for orders. The Appellant has claimed that he was not aware of the action of filing application for liquidation by the Resolution Professional, and therefore he could not file any objection in the liquidation proceedings. He has further stated that after he received information of the order reserving judgment of the liquidation application he filed an application before the Adjudicating Authority for recalling the interim order passed on 11.8.2021 in the liquidation proceedings. This application was listed on 4.10.2021, when it could not be heard, and soon afterwards, the Adjudicating Authority passed orders f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kishan Gupta vs. Greenedge Buildtech and Ors. [CA (AT) (Ins) No. 969-970 of 2019]. 10. We note that the CIRP against the Corporate Debtor was initiated vide order dated 14.2.2020 of the Adjudicating Authority. The IRP, (who subsequently became the Resolution Professional and is now the Liquidator) started prescribed actions for resolution of the Corporate Debtor. During the course of the CIRP, the Committee of Creditors (CoC), in its 13th meeting held on 16.6.2021, rejected the single resolution plan and decided that the Corporate Debtor should go into liquidation. Consequently the Resolution Professional filed an application under section 33 of IBC seeking orders for liquidation from the Adjudicating Authority. 11. We also note th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acceptable to the Respondent No. 2 bank. In such an event, and in the absence of any valid settlement plan, the COC, in its wisdom, decided in its 13th meeting on 16.6.2021 (minutes of the meeting attached at pp. 111-135 of Appeal Paperbook) to move for liquidation of the corporate debtor. 14. Hon ble Supreme Court has observed in the matter of Gujarat Urja Vikas Nigam Limited v. Amit Gupta [(2001) 9 SCC 512] that a delay in completion of the insolvency proceedings would diminish the value of the debtor's assets and hamper the prospects of a successful reorganization or liquidation. For the success of an insolvency regime, it is necessary that insolvency proceedings are dealt with in a timely, effective and efficient manner . The t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not to be interfered with, excepting the limited scope as provided under Section 30 and 31 of the I B Code 17. The Ld. Counsel for Appellant has not pointed out to any legal weakness in the decision of the COC nor any infirmity in the order under section 33 of the Adjudicating Authority on which the liquidation order has been challenged. 18. In the light of the above discussion, we are not inclined to interfere with the impugned order passed by the Adjudicating Authority for liquidation of the corporate debtor. We find it entirely legal, just and proper for taking care of the interests of all the creditors. The appeal is, therefore, dismissed at the stage of admission. No order as to costs. - - TaxTMI - TMITax - Insolvency & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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