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TMI Blog2022 (5) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... im Resolution Professional (IRP). 3. The facts of the case, briefly stated that, the Applicant received the order copy dated 02.08.2019, on 05.09.2019, i.e., on the 35th day of the Corporate Insolvency Resolution Process period. Subsequently, the Applicant made the Public Announcement on 07.09.2019. The 1st CoC meeting was held on 03.10.2019, the Applicant was unanimously appointed as the Resolution Professional. Further, the Resolution Professional issued invitation for submission of Expression of Interest (EOI) with the last date of submission of interest being 15.12.2019. 4. In the 3rd meeting of the CoC held on 16.12.2019, the CoC extended the timelines for submission of EOI till 09.01.2020. The second edition of the Invitation for submission of EOI was published on 22.12.2019, only two EOIs were received till 09.01.2020. The Information Memorandum was circulated amongst the members of the CoC on 24.10.2019 and Request for Resolution Plan (RFRP) for the Corporate Debtor was approved by the CoC in its 3rd meeting held on 16.12.2019. A further extension of 90 days beyond the 180 days was granted by this Adjudicating Authority vide order dated 14.01.2020 in I.A. No. 23/2020, thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Final Resolution Plan was rejected by the CoC on 02.09.2020. Thus, there was no Resolution Plan remaining for the Corporate Debtor; and therefore this application has been filed for liquidation of the Corporate Debtor under Section 33(1) of the Code. In the summary report of e-voting of 11th meeting on 02.09.2020; 74.70% voted against the Agenda Item B4 i.e., to consider and propose appointment of Mr. Aashish Gupta the existing RP, as liquidator and 53.11% voted against the Agenda Item No. B5 i.e. to consider and propose appointment of Mr. Rabinder Beleyur as liquidator. It is stated that CoC in its 11th meeting considered the issue of approval of liquidation of Corporate Debtor at Agenda Item No. B3 and the same is as under: "RESOLVED THAT members of CoC be and hereby approve the Liquidation of Base Corporation Limited in accordance with provisions of Section 33(2) of the Insolvency & Bankruptcy Code, 2016 subject to approval of Hon'ble Adjudicating Authority. RESOLVED FURTHER THAT the Resolution Professional be and is hereby authorised to take such steps as may be necessary, in relation to the above, to the extent required and to settle all matters arising out of and inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the application by the Resolution Professional and have also perused the records. 14. The relevant provisions of Sections 33(1) and 33(2) of the Code are as follows:- "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 liquidated in the manner as laid down in this Chapter; (ii) issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered. (2) Where the resolution professional, at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of an Insolvency Professional as Liquidator by an order appoint such Insolvency Professional as Liquidator. It is seen that the Resolution seeking for appointment of the existing RP as a Liquidator and also the Resolution seeking for appointment of the new RP as a Liquidator failed to attain the required 66% of voting share. In the circumstances, and to avoid any further complications in the smooth conducting of the Liquidation process, it is better to appoint a new RP, other than those two persons who failed to get the confidence of the CoC, as a Liquidator of the Corporate Debtor. 17. In this regard a letter bearing File No. 25/02/2022-NCLT dated 03.01.2022 has been received from National Company Law Tribunal, New Delhi forwarding therewith a copy of IBBI letter No. IP-12011/1/2020-IBBI/1103/2785 dated 30.12.2021 along with the guidelines and the panel of resolution professionals approved for NCLT, Bengaluru Bench for appointment as IRP or Liquidator. The panel is valid from 01.01.2022 to 3,0,06.2022. We select Mr. Konduru Prasanth Raju bearing Registration No. IBBI/IPA-002/IP-N00708/2018-2019/12200, having registered address at B-804, Shriram Suhaana Apartments, Harohalli, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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; ii. That the provisions of sub-section (5) of Section 33 of the Code 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; and iii. That this order of liquidation under Section 33 of the Code 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 Liquidator; and iv. That all the powers of the Board of Directors, key managerial personnel and the partners of the Corporate Debtor, as the case may be, shall cease to have effect and shall be vested in the Liquidator; and v. That the personnel of the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as may be required by him in managing the affairs of the Corporate Debtor and provision of Section 19 of the Code shall apply in relation to voluntary liquidati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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