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Judgment
Per Se- SUMITA PURKAYASTHA, MEMBER (TECHNICAL)
This is an application filed by the Resolution Professional under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as the “Code”) for issuance of directions for liquidation of the Corporate Debtor, Allbest Offshore Marine (India) Pvt. Ltd.
The facts in brief are that the operational creditor, Arun K. Agarwal & Associates, had filed an application under Section 9 of the Code for initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The said application was admitted by this Tribunal on 12.01.2021 initiating CIRP against the corporate debtor and appointed Ms. Preeti Jaiswal as the Interim Resolution Professional (IRP).
Thereafter the IRP made the Public Announcement in 'Form A' in respect of initiation of CIRP. The IRP after collecting and verifying claims received and constituted Committee of Creditors (CoC) with sole financial creditors.
Subsequently, the first meeting of CoC was held on 12.02.2021. In the 2nd meeting of CoC held on 24.03.2021, the applicant Mr. Man Mohan Vij was appointed as Resolution Professional of Corporate Debtor.
It is submitted that in the 3rd meeting of CoC 26.05.2021 it was discussed that the corporate debtor is not having the status of going concern and in the name of asset only a claim of Rs. 4,70,27,679/-against Sembmarine Kakinada Limited, which is also under CIRP and in such circumstances there would be no resolution of the Corporate Debtor. The CoC advised the applicant to not to publish Form-G and take up the matter of liquidation of corporate debtor.
Thereafter in 4th meeting of CoC was convened 15.06.2021 and CoC decided to resolve the liquidation of corporate debtor.
In view of the submission made by the parties the liquidation has to follow as recommended by the Committee of Creditors in terms of provisions of Section 33 (1) of the Code. Adherence to statutory requirement has to be in toto. When the language of the Code is clear and explicit the Adjudicating Authority must give effect to it whatever may be the consequences and in present case the consequence is liquidation of Corporate Debtor.
In the factual background, since there is no resolution plan, and the proposal of liquidation is in conformity with the decision of the Committee of Creditors with 100% voting share, the payer for liquidation of the corporate debtor under Section 33 of the Code is hereby allowed.
The applicant has filed its written consent dated 21.07.2021 to act as a liquidator of the Corporate debtor.
In the result the application is allowed by ordering liquidation of the corporate debtor, namely M/s. Allbest Offshore Marine (India) Pvt. Ltd. in the manner laid down in the Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016 along with following directions:
a. Mr. Man Mohan Vij, having registration number IBBI/IPA-001/IP-P01326/2018-19/12099, is appointed as Liquidator in terms of Section 34(1) of the Code.
b. Mr. Man Mohan Vij, is directed to issue Public Announcement stating that the corporate debtor is in liquidation, in terms of Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (Regulations);
c. The Registry is directed to communicate this Order to the Registrar of Companies, NCT of Delhi & Haryana and to the Insolvency and Bankruptcy Board of India;
d. The Order of Moratorium passed under Section 14 of the Code shall cease to have its effect and that a fresh Moratorium under Section 33(5) of the Code shall commence;
e. The Liquidator is directed to proceed with the process of liquidation in the manner laid down in Chapter III of Part II of the Code and in accordance with the relevant regulations.
f. The liquidator shall follow up and investigate the financial affairs of the corporate debtor in accordance with provisions of Section 35 (l) of the Code.
g. The liquidator shall also follow pending application, if any, for its disposal during the process of liquidation including initiation of steps for recovery of dues of the Corporate Debtor as per law.
h. The Liquidator shall submit a Preliminary Report to the Adjudicating Authority within seventy-five days from the liquidation commencement date as per Regulation 13 of the Regulations.
Copy of this order be sent to the financial creditors, corporate debtor and the Liquidator for taking necessary steps.
j. I.A. 3182/2021 filed in IB 438 (ND) /2020 is allowed.