9911796707
TMI Blog2022 (10) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... n 33(2) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the Code ) for passing an order of liquidation of the Corporate Debtor, M/s. Platino Classic Motors (India) Pvt. Ltd. and appointment of the present Resolution Professional as Liquidator of the Corporate Debtor. 2. The facts as narrated in the application and explained by the RP are summarized hereunder: i. The Financial Creditor, the Federal Bank Ltd. had filed an application under Section 7 of the Code for initiation of Corporate Insolvency Resolution Process (hereinafter referred to as the 'CIRP'), against the Corporate Debtor M/s. Platino Classic Motors (India) Pvt. Ltd., which was admitted vide order dated 08.03.2021 and Mr. Sathiq Buhari was appointed as the Interim Resolution Professional (hereinafter referred to as IRP ). Thereafter due to the inconvenience expressed by the Interim Resolution Professional Mr. Sathiq Buhari, this Adjudicating Authority appointed the Applicant as Interim Resolution Professional of the Corporate Debtor vide order dated 18.11.2021 in IA(IBC)/109/KOB/2021 and subsequently he was appointed as RP on 22.12.2021, which has been intimated to this Adjudica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and did not provide information on the source of funds required for implementing the Resolution Plan. v. At the 10th meeting of the CoC held on July 8, 2022, the CoC deliberated on the Revised Resolution Plan in the presence of the Resolution Applicant. After applying their commercial wisdom, CoC resolved with 97.70% voting share to reject the Revised Resolution Plan submitted by the Resolution Applicant. The CoC observed the following reasons for rejection of the Revised Resolution Plan: - a) The overall amount offered to the creditors was unsatisfactory; b) The requirement to waive all other claims by the creditors such as execution of other guarantees was not acceptable; c) Net-worth certificates provided by the resolution applicant was ambiguous and did not disclose all the details called for by the CoC in spite of another opportunity being afforded; d) The resolution plan did not disclose the source of funds from which creditors would be paid and how further investments, as proposed in the resolution plan, would be made; e) The representative of the resolution applicant in his oral submissions at the CoC meeting quoted different figures of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. by filing IA/109/KOB/2021 which was rejected by this Adjudicating Authority vide order dated 18.11.2021 directing to continue the CIRP as per rules. The EOI for the first time for resolving the debts of the Corporate Debtor was issued after a year of initiation of CIRP. 8. His further submission is that he has filed a resolution plan with the Resolution Professional. He has produced the last Resolution Plan submitted by him before the CoC as Annexure H seeking a joint resolution plan in the matter of M/s. Platino Classic Motors (India) Pvt. Ltd. and M/s. Koyenco Autos Private Limited which was struck down vide the 10th CoC minutes dated 08.07.2022 on the ground that the joint proposals cannot be accepted. The BMW Group is the largest claimant in the Corporate Debtor which is having a voting share of 68.15% in the CoC. The main issue raised by the deponent in the affidavit is justification for group insolvency. Due to the alleged threat and pressure from BMW India and BMW FS, the Platino Classic Motors (India) Pvt. Ltd had to add its group company M/s. Koyenco Autos Private Limited as a coborrower to all the agreements entered into by M/s. Platino Classic Motors (India) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses (i), (ii) and (iii) of Clause (b) of sub-Section (1). [Explanation: for the purposes of this sub-section, it is hereby declared that the committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution under sub-section (1) of Section 21 and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum]. IV. Considering the documents and submission made by the Resolution Professional, since the COC in its commercial wisdom has resolved to take the Corporate Debtor in liquidation, we are of opinion that the decision of the COC should not be interfered with. The present application seeking liquidation of the Corporate Debtor M/s. Platino Classic Motors (India) Pvt. Ltd., in the manner laid down in Chapter III of Part II of the Code is allowed. V. We appoint Mr. Reuben George Joseph, having registration No. IBBI/IPA-001/IP-P02134/2020-2021/13326, office at 37/2038, 1st Floor, Muttathil Lane, Kadavanthra, Ernakulam, Kerala, 682020 who has consented to act as Liquidator and filed his written consent in Form AA, as Liquidator in terms of Section 34(1) of the Code ..... X X X X Extracts X X X X X X X X Extracts X X X X
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