Axis Bank Limited vs M/s Maximum Agency Private Limited

Jinan K.R., Hon'ble Member (Judicial)

Axis Bank Limited / Financial Creditor filed this application under Sec.7 of the Insolvency and Bankruptcy Code, 2016 (in short IB Code) read with Rule 4 of the Insolvency and Bankruptcy Code (Application to Adjudicating Authority) Rules, 2016 for initiation of corporate insolvency resolution process as against the Corporate Debtor/ Maximum Agency Private Limited. Vide order dated 02/08/2019, the application was admitted by appointing Mr. Hrisikesh Dasgupta, as Interim Resolution Professional to initiate corporate insolvency resolution process as against the Corporate Debtor in accordance with the provisions of the Code.

Thereafter, the Interim Resolution Professional was appointed as Resolution Professional by the Committee of Creditors and in turn approved by the Adjudicating Authority. The Resolution Professional has convened six meetings of Committee of Creditors. However, he failed to obtain any resolution plan resolving the assets of the Corporate Debtor. During the course of the CIRP process, the Resolution Professional has taken steps to get back possession of the land and building of the Corporate Debtor taken over by Kolkata Municipal Corporation (KMC) and despite the order of the Adjudicating Authority to hand over the possession of the property to the Resolution Professional for resolving the assets of the corporate debtor, the KMC did not hand over the possession of the property and it is one among the factors in not getting any resolution applicants for resolving the assets of the corporate debtor.

It is submitted by the Ld. RP that the Kolkata Municipal Corporation has challenged the order of this Adjudicating Authority before the Hon'ble High Court, at Calcutta and it is pending before the Hon'ble High Court at Calcutta.

The learned Resolution Professional further submits that despite invitation for EOI and submission of resolution plan, he was not in receipt of any EOI or any resolution plan and in the meanwhile 180 days expired on (27^{\text{th}}) January, 2020 and his proposal for extending the period of CIRP beyond 180 days has not been passed by the Committee of Creditors and Committee of Creditors rejected his request for extension of CIRP period and thus there is no other alternative but to file final report, praying for passing an order in terms of section 33(1) (a) of the IB Code, 2016.

The Resolution Professional also gave written consent showing his willingness to continue as the liquidator. Accordingly, the RP can be appointed as the Liquidator.

Upon hearing the learned Resolution Professional and perusal of the records and the report filed by the liquidator, we are satisfied that for want of resolution plan, this Adjudicating Authority has no other alternative than to pass the order requiring the Corporate Debtor to be liquidated in the manner as laid down in chapter 3 read with section 33 of the Code. Accordingly, an order of liquidation of the Corporate Debtor is passed upon the following orders.