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TMI Blog2022 (4) TMI 1001X X X X Extracts X X X X X X X X Extracts X X X X ..... en before the expiry of the insolvency resolution process period. When no security is there and resolution has been passed in the CoC with 100 % voting share, it is not worth to continue the CIRP and increase the cost of the CIRP. Section 33(2) of the Code empowers the Adjudicating Authority to pass an order for liquidation of the Corporate Debtor where the resolution professional, at any time during the CIRP but before confirmation of the resolution plan, intimates the Adjudicating Authority of the decision of the CoC approved by not less than sixty-six percent of the voting share, to liquidate the Corporate Debtor. The Corporate Debtor is ordered to be liquidated in terms of section 33(2) of the Code read with sub-section (1) there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resolution Professional ( IRP ) who was later confirmed as the Resolution Professional. 3. The IRP published public announcement on the commencement of Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor on 08.01.2022 in two newspapers; one in English daily (The North East Times) and other in Assamese Daily (Amar Asom) which are largely circulated in the State of Assam i.e. the place where the registered office of Corporate Debtor is situated. 4. The IRP received two claims in response to public announcement and the details of the name are as follows : Sl No. Name of Creditor Nature of Creditor Address Amount Claimed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not been carrying on its business since 2011. The Books of accounts and other records could not be traced as no office of the corporate debtor exists as on date. The Corporate Debtor filed its annual report with ROC up to FY 2009-10 and no documents thereafter could be found in the MCA Portal. 7. The RP in the CoC meeting dated 23.02.2022 apprised the committee about the following facts about the corporate debtor: a) The company does not have any books of accounts and audited financials since 2009-10. b) The company does not have commercial operation since 2011. c) The company does not have any moveable or immovable assets. d) The bank accounts maintained by the company are either closed or out of balance. e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Debtor. The Corporate Debtor filed its annual report with ROC up to FY 2009- 10. The realizable value of assets of Corporate Debtor is Nil. The CoC has also resolved by 100% voting share to liquidate the Corporate Debtor even before the expiry of the insolvency resolution process period. When no security is there and resolution has been passed in the CoC with 100 % voting share, it is not worth to continue the CIRP and increase the cost of the CIRP. Hence the prayer made in the IA needs to be accepted. 13. Section 33(2) of the Code empowers the Adjudicating Authority to pass an order for liquidation of the Corporate Debtor where the resolution professional, at any time during the CIRP but before confirmation of the resolution p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idation. 14.5 All the powers of the Board of Directors, and of key managerial persons, shall cease to exist in accordance with Section 34(2) of the Code. All these powers are vested henceforth in the Liquidator. 14.6 The personnel of the Corporate Debtor are directed to extend all assistance and co-operation to the Liquidator as required by him in managing the liquidation process of the Corporate Debtor. 14.7 On initiation of the liquidation process but subject to Section 52 of the Code, no suit or other legal proceeding shall be instituted by or against the Corporate Debtor save and except the liberty to the liquidator to institute suit or other legal proceeding on behalf of the Corporate Debtor with prior approval of this Adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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