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Judgment
[Per: VIRENDRA KUMAR GUPTA, MEMBER (T)]
1. The present Interlocutory Application seeking for liquidation of the Corporate Applicant Company is filed by the Resolution Professional under Section 33(1), 33(2) & 34 of the Insolvency & Bankruptcy Code, 2016.
2. The facts, in brief, are that the Corporate Debtor was admitted into Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) vide order dated 26.05.2020 in an Application filed under Section 10 of the Insolvency & Bankruptcy Code, 2016. Mr. Ashish Shah was appointed as Interim Resolution who made public announcement on 08.06.2020. Thereafter, Committee of Creditors (hereinafter referred to as “COC”) was constituted wherein State Bank of India (87.53% voting rights) and Punjab National Bank (12.47% voting rights) were part of COC. State Bank of India vide its letter dated 18.07.2020, withdrew its claim, hence, Punjab National Bank was considered as sole member of COC in 2nd meeting dated 05.08.2020. The COC in its 4th meeting dated 22.10.2020, resolved to replace IRP with RP. Accordingly, an application i.e., IA No. 817 of 2020 in CP (I.B.) No. 309 of 2018 was filed before this Adjudicating Authority for replacement of IRP which was allowed vide order dated 02.12.2020.
The Corporate Insolvency Resolution Process for 180 days was completed on 04.12.2020. However, extension of 90 days was granted vide order dated 14.12.2020 in IA 896 of 2020 filed by applicant. The invitation for Expression of Interest (hereinafter referred to as “EOI”) was published 26.12.2020 in English-Business Standard and in Gujarati- Divya Bhaskar wherein last date of submission of EOI was 11.01.2021. In 6th meeting of COC dated 21.01.2021, RP submitted that no EOI has been received till date. Thereafter, in 7th meeting dated 11.02.2021, RP informed the COC that extension granted by the Tribunal was going to expire on 20.02.2021. Pursuant to that, COC, in the said meeting resolved for seeking of approval of Adjudicating Authority to initiate liquidation of Corporate Debtor as per Section 33(2) of IBC, 2016 and further resolved that Resolution Professional Mr. Ajit Gyanchand Jain to be allowed to act as 'Liquidator'. It was also resolved that liquidator fee would be decided as per Regulation 4 of IBBI (Liquidation Process) Regulations, 2016. The Resolution Professional has already given his written consent annexed at "Annexure-L" of the application and he has been authorised to file the present application for seeking order of liquidation from this Adjudicating Authority.
Learned Counsel for the Resolution Professional-Applicant narrated the basic facts and requested for passing an order of liquidation as there was no reason to continue with Corporate Insolvency Resolution Process.
We have considered the submissions made by Learned Counsel for the Applicant and material available on record. It is noted that the Corporate Debtor was admitted into Corporate Insolvency Resolution Process vide order dated 26.05.2018 in CP (I.B.) No. 309/10/NCLT/AHM/2018.
It is found that, neither EOI's nor Resolution Plan has been received during Corporate Insolvency Resolution Process. Corporate Insolvency Resolution period including extension given by this Authority has also expired. In these circumstances, there remains no other option but to pass an order of Liquidation of the Corporate Debtor and this has also been decided by the Committee of Creditors in its meeting dated 11.02.2021 with 100% voting. Considering the factual situation of the matter and applicable legal provision(s), we order that company be liquidated. This is further ordered that the Resolution Professional shall act as 'Liquidator'. The detailed order is as under :-
ORDER
As per the Section 34(1) of the I.B. Code, the Applicant/Resolution professional, Mr. Ajit Gyanchand Jain, (Registration No. IBBI/IPA-001/IP-P00368/2017-18/10625) is hereby appointed as a Liquidator of the company M/s. Vaman Textiles Pvt. Ltd, having CIN No. U17120GJ2008PTC054340, which has been duly approved by COC in its meeting dated 11.02.2021.
All the powers of the Board of Directors, key managerial persons, the partners of the Corporate Debtor hereafter cease to exist. All these powers henceforth, vest with the Liquidator.
The personnel(s) of the Corporate Debtor are directed to extend all co-operations to the Liquidator as required by him in managing the liquidation process of the Corporate Debtor.
The Liquidator will charge fees for conduct of the liquidation proceedings in proportion to the value of the liquidation estate assets as specified by IBBI and the same shall be paid to the Liquidator from the proceeds of the liquidation estate under Section 53 of the Code.
That once having liquidation process initiated, subject to Section 52 of the Code, no suit or other legal proceedings shall be instituted by or against the Corporate Debtor save and except the liberty to the liquidator to institute suite or other legal proceeding on behalf of the corporate debtor with prior approval of this Adjudicating Authority as mentioned in Sub-Section 6 of Section 33 of the I.B. Code.
The Liquidator shall co-ordinate with all the authorities and the respected Government Authorities and shall provide complete information to facilitate the process of Liquidation.
The Liquidator is at liberty to seek any directions, if need be from this Tribunal during the Liquidation Process.
The Liquidator shall take necessary legal action to recover the trade receivables and other credits such as loans and advances from the parties which are reflected in the latest balance sheet of the Corporate Debtor, if any. This direction is hereby given in concurrence of the jurisdiction prescribed under Section 33(5) of the Code.
This liquidation order shall be a deemed to be notice of discharge to the officers, employees and workmen of the Corporate Debtor except to the extent of the business of the Corporate Debtor continued during the liquidation process by the Liquidator.
The Moratorium declared vide order dated 26.05.2020 in CP (I.B.) No.309/10/NCLT/AHM/2018, henceforth, ceases to exist.
The present I.A. No. 170 (AHM) 2021 is allowed directing the appointed Liquidator to initiate and complete liquidation process as envisaged under Chapter – III of the Code by following the liquidation process as specified in the Insolvency and Bankruptcy Board of India (liquidation process) Regulations, 2016.
The Registry is directed to upload this order on the Official Website within maximum two working days from the date of this order. The authenticated copy of this order also be sent by the registry to the Financial Creditor, Corporate Debtor, Corporate Applicant, Registrar of the Companies, Resolution Professional cum Liquidator by Speed-post within one week from this order.
Accordingly, the present I.A. No. 170 (AHM) 2021 is allowed and stands disposed of.