Ayush Food Products vs Magdha Creative Merchant LLP

The above Interlocutory Application is filed by the Applicant/IRP for liquidation of the Corporate Debtor company.

Heard the argument of counsel appearing for the Applicant/IRP and the above Interlocutory Application is allowed. Detail order follow.

List all other pending applications on 13.03.2023.

The above application I.A. No. 914/2022 is filed by Resolution Professional, Mr. Shyam Sundar Kasera (hereinafter referred to as the “Applicant”) seeking liquidation of Magdha Creative Merchant LLP. (hereinafter referred to as the “Corporate Debtor”) under Section 33(3) of the Insolvency and Bankruptcy Code, 2016 (hereinafter called as “the Code”), praying for following reliefs:

The brief facts of the application are as follows:

A. The present Application has been filed by Mr. Shyam Sundar Kasera (IP Registration No. IBBI/IPA-001/IP-P00594/2017-18/11064, the Resolution Professional of M/s Magdha Creative Merchant LLP ("Corporate Debtor") under Section 33(3) of the Insolvency and Bankruptcy code,2016 ("the code"), in order to bring to the kind notice of this Hon'ble Tribunal that the Committee of Creditors ("COC") of the Corporate Debtor, which consists of the financial creditor, namely Punjab National Bank and L & T Housing Finance Ltd, has resolved to liquidate the Corporate Debtor. B. On 05.03.2021, Corporate Debtor was admitted into CIRP and the Applicant herein was appointed as Interim Resolution professional in accordance with the code. C. The Applicant further stated that albeit with great difficulty, claims were invited from all the creditors of the Corporate Debtor and after following the due process as envisaged under law, the claims of the Respondent No. 2 and 3, being the only claimants, were verified by 30.03.2021 and the CoC of the Corporate Debtor came to be constituted.

D. On 18.01.2022, the Applicant prepared an information Memorandum of the Corporate Debtor.

E. Further on 30.12.2021, the Applicant realized Expression of Interest (EOI) in Form G inviting Resolution Plans from Prospective Resolution Applicant(s) i.e PRA(s)

F. The Applicant further stated that IA 1299/2021 in this Company Petition was preferred on 17.06.2021, seeking suitable direction from this Bench under Section 19 of the Code.

G. On 15.02.2022, in its 5^th CoC meeting decided to liquidate the Corporate Debtor.

H. The Applicant further submits that as required by Regulation 39B (4) of the CIRP Regulations, 2016, the CoC has, in its 5^th meeting held on 15.02.2022, approved the self-explanatory resolution, with the requisite majority, providing for contribution by its members for meeting the difference between Estimated Value of Liquidation Cost and the estimated value of the Liquid Assets.

J. The Applicant submits that as required by regulation 39B (4) of the CIRP Regulations, 2016, the CoC has, in its 05^th meeting held on 15.02.2022, approved the following self-explanatory resolution, with the requisite majority, providing for contribution.

K. The CoC in its 5^th meeting, proposed the RP Shyam Sundar Kasera, the Resolution Professional the following Resolution was passed and the extract of the same are as below:

L. The CoC in its 5^th meeting also discussed about the following alternative resolution as below:

After hearing the submissions made by the Counsel appearing for the Applicant and upon perusing the material available on record, it is observed from the minutes of the 5^th CoC meeting that the CoC has unanimously decided to liquidate the Corporate Debtor. This bench, therefore allows the above Interlocutory Application Number 914 of 2022 and passed the following:

The above I.A. No. 914/2022 is Allowed and the Corporate Debtor Magdha Creative Merchant LLP is ordered to be liquidated as a going concern.

a. Mr. Prakash Dattatraya Naringrekar, having Registration No.IBBI/IPA-002/IP-N00270/2017-18/10783, Having Email Id [email protected], mobile no. 9322714508 respectively is hereby appointed as the Liquidator as provided under Section 34(1) of the Code.

b. That the Liquidator for the conduct of Liquidation proceedings would be entitled to a remuneration shall be as per the chart given in Regulation 4(2) of the IBBI (Liquidation Process) Regulation 2016, subject to minimum fees of RS. 2.50 lakhs plus taxes for the entire liquidation process.

c. The Liquidator appointed in this case to initiate liquidation process as envisaged under Chapter-III of the Code by following the liquidation process given in the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

d. The Liquidator appointed under section 34(1) of the Code. Will have all powers of the board of directors, key managerial personnel and the partners of the Corporate Debtor, as the case may be, shall cease to have effect and shall be vested with the liquidator.

e. That the Corporate Debtor to be liquidated in the manner as laid down in the Chapter by issuing Public Notice stating that the Corporate Debtor is in liquidation with a direction to the Liquidator to send this order to the ROC under which this Company has been registered.

f. All the powers of the Board of Directors, key managerial persons, the partners of the Corporate Debtor hereafter ceased to exist. All these powers henceforth vest with the Liquidator.

g. That 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.

h. That on having liquidation process initiated, subject to Section 52 of the Code, no suit or other legal proceeding shall be instituted by or against the Corporate Debtor 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.

With the above directions, this application i.e. I.A. No. 914 of 2022 is hereby allowed and disposed of.