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TMI Blog2023 (2) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... a Merla , Member ( Technical ) ] : 1. Challenge in these 'Appeals' viz. Comp. App. (AT) (CH) (Ins.) No.17/2023 and Comp. App. (AT) (CH) (Ins.) No.18/2023 under Section 61 of the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as 'The Code') is to the 'Impugned Orders' dated 09.11.2022, passed in IA/IBC/984/CHE/2022 in IBA/990/2019 and IA/IBC/983/CHE/2022 in IBA/988/2019, respectively, ordering 'Liquidation' of the 'Corporate Debtors' 'M/s. JKS the Banyaan Private Limited' and 'M/s. Pondicherry Extraction Industries Private Limited', respectively, by which 'Impugned Order', the 'Adjudicating Authority' has allowed the 'Applications' filed by the Resolution Professional ('RP') seeking 'Liquidation' of the 'Corporate Debtors'. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such Resolution may not lead the maximum value for the respective 'Corporate Debtors'. It is submitted that exhaustive guidelines were laid down in 'State Bank of India' Vs. 'Videocon Industries Limited', M.A.1306/2018 in CP (IB) 02/2018, vide 'Order' dated 08.08.2019, for consolidating the CIRP of all 'Corporate Debtors'. It is submitted that during the course of CIRP, the Committee of Creditors ('CoC'), invited Expression of Interest ('EOI') by publishing 'Form-G' on more than one occasion, but received no response. The 'Appellant' had preferred an IA.483/2022 in CP (IB) 84/CHE/2020, IBA990/2019 and IBA998/2019 on 18.04.2022 before the 'Adjudicating Authority' for 'Consolidation' of CIRP of all the three entities. But the 'Adjudicating A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd of Directors' failed to extend cooperation to the RP and were also refusing to hand over the 'Assets' and the books and records of the 'Corporate Debtor'. The RP was constrained to file an 'Application' bearing IA744/2022 under Section 19(2) before the 'Adjudicating Authority' as the 'Appellant' and the other ex-Directors refused to cooperate. The 'Adjudicating Authority' vide 'Order' dated 12.12.2022 directed the 'Shareholders' to extend all assistance and cooperation. It is submitted that more than 60% of the 'Assets' owned by the 'Corporate Debtor' is with the 'related party' of the 'Appellant' for approximately 20 years and did not fetch any revenue to the 'Corporate Debtor' causing financial distress. The 'Appellant' also did not ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls'. CIRP was admitted in 'M/s. Pondicherry Extraction Industries Private Limited' on 23.04.2021. It is significant to mention that even 'M/s. JKS the Banyaan Private Limited' went into CIRP on the same date. CIRP was admitted for the third Company 'M/s. JR Foods Limited' on 11.02.2022. It is pertinent to mention that all three Companies were admitted into CIRP under 'Section 10 of the Code'. It is not in dispute that both 'M/s. Pondicherry Extraction Private Limited' and 'M/s. JKS the Banyaan Private Limited' had stood as 'guarantor' for the loans availed by M/s. JR Foods Private Limited which had defaulted the 'loan' availed and 'Bank of Baroda' had taken action under the provisions of SARFAESI Act, 2002. It is also evident from the recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anyaan Private Limited' but the 'Application' of 'Consolidation' was filed on 09.04.2022 after a year of admission under CIRP. This is of more relevance because the CIRP was initiated by the 'Corporate Debtor' themselves under Section 10 of the Code. Further, when the 'Adjudicating Authority' has already allowed the 'Application' for 'Liquidation' of the 'Corporate Debtors', ordering for consolidation of CIRP at this stage and thereby starting a 'De Novo CIRP', would amount to defeating the spirit and objective of the time bound process envisaged under the I & B Code, 2016. 6. Further, this 'Tribunal' is of the earnest view that the 'Appellant' has failed to meet the basic requirements for 'consolidation of CIRP' Viz. that the 'Assets' of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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