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TMI Blog2022 (8) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... ber (T) For the Appellant : Nitesh Shrivastava, Adv. and Garima Diggiwal, RP ORDER Prasanta Kumar Mohanty, Member (T) 1. This Application bearing IA No. 223/JPR/2021 has been filed by the Resolution Professional of M/s. Khator Fibre and Fabrics Limited ('Applicant'/'RP') under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 ('Code'/TBC') for passing an order of Liquidation against M/s. Khator Fibre and Fabrics Limited ('Corporate Debtor'). 2. The Adjudicating Authority vide order dated 23.03.2021 had admitted the Application filed by Leomine Organics Private Limited ('Operational Creditor') under Section 9 of the Code for initiation of Corporate Insolvency Resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d incur additional costs. 6. At the time of filing the present application it was submitted that the proposal for appointment to act as a Liquidator in the matter by the existing RP had been rejected by the CoC in its 5th Meeting held on 16.06.2021. Thereby, the Application submitted that the name of other Insolvency Professional for acting as a Liquidator will be filed in due course. Hence, the Applicant preferred a Supplementary Affidavit vide Diary No. 1972/2021 dated 28.09.2021 whereby Ms. Megha Agrawal, holding Registration No. IBBI/IPA-001/IP/01456/2018-2019/12272 was recommended to be appointed as the Liquidator of the Corporate Debtor. 7. Further, the Applicant vide Diary No. 2665/2021 dated 10.12.2021 filed additional documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating authority of the decision of the committee of creditor approved by not less than sixty-six per cent of the voting share to liquidate the corporate de 3 for, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clause (i), (ii) and (iii) of clause (b) of sub-Section (1). 9. The Hon'ble National Company Law Appellate Tribunal ('NCLAT'), in Praveen Kumar Nanda Kumar Vs. VSL Securities Pvt. Ltd., Company Appeal (AT) (Insolvency) No. 308 of 2020 observed as under: Likewise, the decision of the COC recommending liquidation of the corporate debtor after proper evaluation of the assets and liabilities of the corporate debtor with no Resolution Plan forthcoming would be a business decision falli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at liquidation proceedings herein, at the instance of CoC, are initiated due to prescription of statute. Ms. Megha Agrawal, Resolution Professional with IBBI holding Registration No. IBBI/IPA-001/IP/01456/2018-2019/12272 has filed her consent in Form-AA dated 09.09.2021 to act as the Liquidator vide Dairy No. 1972/2021 dated 28.09.2021. Thus, Ms. Megha Agrawal is appointed as the Liquidator. 13. It is also seen that Regulation 39B, 39C and 39D in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ('CIRP Regulations') have been inserted by notification No. IBBI/2019-20/GN/REG/048 dated 25.07.2019. Relevant aspects in this respect are examined hereunder. 14. Liqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate Debtor as a going concern under clause (f) thereof. Further it has been resolved that if the Liquidator is unable to sell the Corporate Debtor or its business under clause (e) or (f) of Regulation 32 of the Liquidation Regulations, 2016 within ninety days from the Liquidation commencement date, the Liquidator shall proceed to sell the assets of the Corporate Debtor under Clause (a) to (d) of Regulation 32 of the Liquidation Regulations, 2016. 16. The fee of the Liquidator (Regulation 39D of CIRP Regulations, 2016)-It is seen that the CoC, in consultation with the resolution professional, has failed to fix the fee payable to the liquidator. Thus, the Liquidator shall be entitled to a fee in such manner as prescribed under Regulation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce and cooperation to the Liquidator as may be required by him in managing the affairs of the Corporate Debtor and provisions of Section 19 of the Code shall apply in relation to liquidation process as they apply in relation to CIR process with the substitution of references to the Interim Resolution Professional for references to the liquidator. (vi) The Liquidator shall publish public announcement in accordance with Regulation 12 of the IBBI (Liquidation Process) Regulations, 2016 and in Form B of Schedule II of these Regulations within five days from receipt of this order calling upon the stake holders to submit their claims as on liquidation commencement date and provide the last date for submission of claim which shall be 30 days ..... X X X X Extracts X X X X X X X X Extracts X X X X
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