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TMI Blog2019 (11) TMI 1691X X X X Extracts X X X X X X X X Extracts X X X X ..... ile OBC dissented. M/s. IDEB Projects Pvt. Ltd., Respondent/ Corporate Debtor, is directed to be liquidated in the manner as laid down in Chapter III (Liquidation Process) of Part II of the Code - application allowed. - I.A. No.498/2019 in C.P. (IB) No. 17/BB/2019 - - - Dated:- 8-11-2019 - Hon'ble Shri Rajeswara Rao Vittanala, Member (Judicial) And Hon'ble Shri Ashutosh Chandra, Member (Technical) For the Applicant: Mr. Velayudham Jayavel with Shri Pinar Mehta For the Petitioner: Shri D.M.Dora For the Respondent No.3/CoC: Shri Francis Xavier For the SBI: Shri S.R.Tejas ORDER Per: Rajeswara Rao Vittanala, Member (J) 1. 1.A.No.498/2019 in C.P. (IB) No. 17/BB/2019 is filed by Mr. Velayudham Jayavel, Resolution Professional for M/S. IDEB Projects Pvt. Ltd. ('Applicant') U/ s. 33 (2) of the IBC, 2016, by inter alia seeking to liquidate the Corporate Debtor and pass any other order(s) in the interests of justice and equity. 2. Brief facts of the case as mentioned in the Application, which are relevant to the issue in question, are as follows: (1) The main Company Petition was filed by Oriental Bank of Commerce (Petitioner/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a Wilful Defaulter. In response to the above email, Mr. Bedi vide letter dated 15.07.2019 stated that he had preferred a Writ Petition before the Hon'ble Karnataka High Court vide W.P.No.64053/2016 challenging his being declared a wilful defaulter by inter-alia alleging that the proper procedure as laid out by the Reserve Bank of India was not followed by the Banks before declaring him as a wilful defaulter. Thereafter, the Applicant responded to the aforesaid letter vide email dated 26.07.2019, reiterating that Mr. Bedi's name appeared as a wilful defaulter under the suit filed category of the CIBIL database as on 30.06.2019 and that no stay was granted by the Hon'ble Karnataka High Court Karnataka in the Writ Petition preferred by him. In response, Mr. Bedi vide email dated 29.07.2019 stated that he was not a wilful defaulter to the best of his knowledge. (4) Subsequent to the aforesaid email, the fourth meeting of the COC was held on 30.07.2019, wherein the Applicant's decision to reject the EOI submitted by Mr. Bedi was ratified by the COC. The Fifth meeting of the COC was held on 08.08.2019. In view of the fact that no eligible EOI was received in pursua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt that the proposal did not conform to the requirements of the IBC, including the requirements under Regulation 39 of the CIRP Regulations which provides for submission of an Affidavit in relation to eligibility under Section 29A of the IBC, an undertaking that the resolution applicant will provide additional funds for payments to Operational Creditors under Regulation 38, if required, and an undertaking from the resolution applicant that all information it has provided in connection with the resolution plan is true and accurate. However, the COC is of the opinion that the liquidation of the Corporate Debtor is the most viable solution for the Corporate Debtor as best efforts were made for invitation for resolution plans for the revival of the Corporate Debtor. Moreover, no legally compliant plan has been received by the Applicant, including the proposal submitted by Mr. Bedi. No other Resolution Applicant has shown any interest in the submission of a resolution plan. Therefore, the members of the COC observed that it is in the best interest of all the stakeholders to liquidate the Corporate Debtor. (8) Since the efforts of the RP could not get viable Resolution Plan to comply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er U/s.29A of the Code is the subject matter before Hon'ble High Court of Karnataka, and thus the Resolution Plan submitted by Mr. H.S.Bedi should be considered by the COC, and thus refusing to concern the case of Mr. H. S. Bedi is illegal. The COC instead of filing this Application seeking time to sought and has filed the instant Application in order to deprive the Resolution Applicant to prevent him from approaching the Hon'ble High Court of Karnataka seeking further clarifications. 6. As per provisions of the Section 33 of the Code, the Adjudicating Authority has to pass an order for liquidating the Corporate Debtor in the manner as laid down in the Code, to issue public announcement that Corporate Debtor is in liquidation process etc., provided the Adjudicating Authority, do not receive any Resolution Plan during the time granted by the Adjudicating Authority (180 days + 90 days as the case may be) In the instant case, as stated supra, the Resolution Plan submitted by Mr. H.S.Bedi was rejected, and the statutory time granted under the provisions of the Code is available up to 25.09.2019. Therefore, the instant Application is filed on 24.09.2019 seeking to pass an Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with such person is a wilful defaulter in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949. Therefore, Section 29A will be applicable to the instant case and thus the rejection of the Resolution Plan of Mr. H.S. Bedi by the COC is not in contravention of the provisions of the Code. However, this order will not preclude Mr. H.S. Bedi to approach the Hon'ble High Court of Karnataka in pending Writ Petition, by seeking appropriate directions in this matter. 8. For the aforesaid reasons and circumstances, we are of the considered opinion that the instant Application deserves to be disposed of with necessary directions. 9. In the result 1.A.N0.498/2019 in C.P. (IB) No. 17/BB/2019 is hereby disposed of with the following directions: (1) We hereby ordered that M/s. IDEB Projects Pvt. Ltd., Respondent/ Corporate Debtor, to be liquidated in the manner as laid down in Chapter III (Liquidation Process) of Part II of the Code. (2) We hereby appointed Shri Velayudham Jayavel, Regn. No. IBBI/IPA-001/IP-P01012/2017-18/11663 as Liquidator, subject to the terms and conditions to be agreed upon by the parties in the light o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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