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TMI Blog2024 (10) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... ril, 2019 to liquidate the Corporate Debtor by a majority of 90.16% voting in favour. The Applicant informed the CoC about his personal difficulty to act as a Liquidator and it was thus decided by the members of CoC in the 7th Meeting that if the Resolution Professional did not provide his consent, then the appointment of liquidator will be in the manner as envisaged u/s 34 of the Code. Accordingly, in the Eighth CoC Meeting held on August 01, 2019, the committee resolved to appoint Mr. Santanu T. Ray to act as the Liquidator of the Corporate Debtor and the written consent of Mr. Santanu T. Ray to act as the Liquidator of the Corporate Debtor has also been placed on record. The Financial Creditor has also filed M.A. No. 2740 of 2019 before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Applicant herein was appointed as the Interim Resolution Professional ( IRP ) and thereafter confirmed as the Resolution Professional ( RP ) by the Committee of Creditors ( CoC ) in their 01st CoC Meeting dated November 01, 2018. 3. On account of the alleged fraud perpetrated by the Corporate Debtor and its officers, the affairs of the Corporate Debtor are subject to probe by multiple law enforcement agencies such as the CBI and ED. The Directorate of Enforcement have passed several orders attaching the properties and assets of the Corporate Debtor. The Applicant, immediately upon his appointment, wrote to various investigation authorities (including the Directorate of Enforcement and the Central Bureau of Investigation) intimating such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Debtor under the Code which, inter-alia, include (i) preparation of information memorandum; (ii) appointment of registered valuer; (iii) issuance of invitation of EoI in Form G etc. 6. Accordingly, during the 05th CoC meeting dated March 28, 2019, the Applicant informed the CoC that the time period of 180 days of CIRP would expire on April 06, 2019 and in the absence of an extension of the duration of CIRP, the chances of insolvency resolution of the Corporate Debtor may be affected. Therefore, in terms of Section 12 of the Code and in accordance with Regulation 40 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the extension of CIRP period by 90 days was discussed by the CoC and the same was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssets of the Company are seized/attached by various governmental agencies such as Enforcement Directorate, the Company has been involved in a huge fraud, various agencies are investigating its affairs, and a number of cases are pending against it. Therefore, it may not be appropriate to the approach the Hon ble NCLT for extension in the CIRP period. The CoC also discussed the issues relating to assets monetization, in the wake of attachment over assets and expressed their views in favour liquidation instead of seeking extension. Accordingly, the CoC authorized the Resolution Professional to file a suitable application/intimation with the Hon ble NCLT for permitting liquidation of the Company. (Emphasis Supplied) 11. On perusal of records, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial Creditor has also filed M.A. No. 2740 of 2019 before this Tribunal proposing the name of Mr. Santanu T. Ray in place of Mr. Vijay Kumar Garg, to act as Liquidator of the Corporate Debtor. 13. The Hon ble Supreme Court in the matter of K. Sashidhar Versus Indian Overseas Bank Ors (Neutral Citation: 2019 INSC 148, Vide Judgment dated February 05, 2019 in Civil Appeal No. 10673 of 2018) has held that the decisions of CoC based on its commercial wisdom are non-justiciable. The CoC with requisite voting as given under Section 33(2) has approved the liquidation of Corporate Debtor in view of bleak chances of receiving any resolution plan for the reasons discussed hereinbefore. This Tribunal has very limited powers of judicial review in such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Adjudicating Authority; vi. All the powers of the Board of Directors, key managerial persons, the partners of the Corporate Debtor, as the case may be, hereafter cease to exist. All these powers henceforth vest with the Liquidator. The personnel of the Corporate Debtor are directed to extend all co-operation to the Liquidator as required by him in managing the liquidation process of the Corporate Debtor. vii. The CoC is directed to contribute to the liquidation cost, if any short fall occurs from the liquidation value of the Corporate Debtor. viii. The Liquidator shall make a public announc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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