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Judgment
This is an Application filed by the Resolution Professional under Section 33 (1), (2) and 34(1) read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking orders for Liquidation of the Corporate Debtor i.e., M/s. KAANHA SHIPPING PRIVATE LIMITED.
The brief facts of the Application are:
The Company Petition i.e., CP (IB)/133/10/AMR/2022 was admitted by the Tribunal vide its order dated 04.07.2023. Mr.Gopi Krishna Byadigera (Applicant herein), was appointed as Interim Resolution Professional (IRP).
The Applicant made public announcement on 06.07.2023 in Form A, in widely circulated newspapers i.e., Times of India (English Newspaper) and Prajashakthi (Telugu Newspaper) to invite claims from the creditors of the Corporate Debtor. In response to the public announcement, the Applicant received claims from two Operational Creditors i.e. 1) Board of Visakhapatnam Port Authority (99.75%) & 2) Sub-Regional Office, Employees State Insurance Corporation (0.25%). The admitted claim amount of both the Operational Creditors is Rs.4,15,32,468/-. There are no claims from the Financial Creditors, hence, the Applicant constituted the Committee of Creditors (CoC) with Operational Creditors.
In the 1st CoC Meeting held on 03.08.2023, the Applicant apprised the CoC and discussed on various tasks, presented estimated budget for the CIRP of the CD, the appointment of Registered Valuers and also to ratify and approve the CIRP expenses incurred by him and in the same meeting the erstwhile directors of the CD apprised the CoC that the CD does not have any assets and operations and requested to keep the cost of CIRP to minimal and the Applicant suggested the CoC, the CoC can pursue liquidation of the CD and the Applicant opened the window for voting on the resolutions proposed and the deadline for voting was extended by many occasions on the request of lead member of CoC. The Applicant received the voting sheet from the lead member of the CoC on 01.11.2023 and immediately circulated the voting results on the same day.
In the 2nd CoC meeting held on 08.11.2023, the CoC discussed the issue in detail and felt that there are no assets or any ongoing operations of the CD and the CoC is not willing to bear any cost for the ongoing CIRP process. Therefore, the CoC decided and unanimously resolved to liquidate the CD by authorising the Applicant to file an application to the Adjudicating Authority seeking for liquidation of the CD and also resolved the fee of the Liquidator as Rs.1,00,000/- per month and his expenses as actuals. Hence, this Application.
From the above, it would appear that despite all possible steps as required under the Code, taken during the CIRP, the CoC did not receive any viable proposal for revival of the Company. The OC did not suggest any name as Liquidator. Hence, Mr. Kantipudi Venkata Raju, (Registration No. IBBI/IPA-002/IPN01125/2021-2022/13675) is appointed as Liquidator from the Amaravati Zonal IPs list provided by the IBBI.
ORDER
In view of the facts stated in the Application, this Tribunal allows the Application with the following directions.
Mr. KANTIPUDI VENKATA RAJU, (Registration No. IBBI/IPA-002/IPN01125/2021-2022/13675), having office at 4-198, Manikya Nagar VTC, Kakinada, East Godavari District, Andhra Pradesh-533005; e-mail: [email protected], MOBILE: 9848835882 is appointed as the Liquidator. No disciplinary proceedings are pending against him as per the IBBI website. He is directed to file his written consent forthwith.
He shall issue public announcement stating that Corporate Debtor is in Liquidation.
The Moratorium declared under Section 14 of the IBC, 2016 shall cease to operate here from.
Subject to Section 52 of the IBC 2016 no suit or other legal proceedings shall be instituted by or against the Corporate Debtor. This shall however 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.
All powers of the Board of Directors, Key Managerial Personnel and partners of the Corporate Debtor shall cease to have effect and shall be vested in the Liquidator.
The liquidator shall exercise the powers and perform duties as envisaged under Sections 35 to 50 and 52 to 54 of the Code, read with Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016.
Personnel connected with the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as will be required for managing its affairs.
The Liquidator shall be entitled to such fees as may be specified by the Board in terms of Section 34 (8) of the Code.
This Order 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.
Copy of the Order shall be furnished to the IBBI, to the Regional Director (South Eastern Region), Ministry of Corporate Affairs; Registrar of Companies & Official Liquidator, Andhra Pradesh, the Registered Office of the Corporate Debtor; and the Liquidator.
With the above directions, IA(IBC)/431/2023 in CP (IB)/133/10/AMR/2022 is disposed of. Hence this Order.