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Judgment
[PER: BENCH]
ORDER
The present Application is filed by the Resolution Professional of M/s.Agarwal Reality Developers Private Limited (Corporate Debtor) under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC Code) seeking to liquidate the Corporate Debtor, M/s.Agarwal Reality Developers Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.
This Tribunal vide Order dated 08.07.2024 in CP(IB) No.136/7/HDB/2023 appointed the Applicant Mr.Golla Ramakanta Rao as Interim Resolution Professional (IRP).
A Public Announcement Notice was issued on 16.07.2024 in compliance with the procedure enshrined in the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 inviting claims and on receipt of claims, verified the same and constituted the Committee of Creditors (CoC) on 22.07.2024.
It is submitted that the Applicant in compliance with the procedure under CIRP Regulations, issued Form-G on 07.09.2024 inviting Expression of Interest for submission of Resolution Plans and against which one Resolution Plan was received. However, the CoC found that the Resolution Plan received was not satisfactory and resolved to issue Form-G once again in their 7th meeting held on 17.01.2025.
It is submitted that pursuant to the approval of the CoC, Form-G was issued the second time on 25.01.2025, against which the following Resolution Plans were received.
| No. | Name of the Resolution Applicant | Offer Amount (Rs.in lakhs) |
|---|---|---|
| 1 | Mr.Sunil Kumar Agarwal | 710.00 |
| 2 | Consortium of Resurgent Property Ventures Private Limited & Mr.Sanjay Lodha | 877.54 |
It is submitted that as the Resolutions Plans were found to be in order and compliant with the relevant provisions of the IBC, 2016 and Regulations and hence were processed and submitted for consideration/approval of the CoC in their 11th meeting held on 07.04.2025. The CoC voted against both the Resolution Plans with 80.05% vote share and remaining members with 19.95% vote share did not exercise their vote nor did they sought extension of voting which resulted in both the Resolution Plans being rejected by the CoC.
(Copy of minutes of the 11th CoC meeting held on 08.04.2025 along with voting results held on 02.06.2025 are at Annexure – I of the Application.)
In the 11th meeting of CoC held on 07.04.2025, it was decided that completing the CIRP within the extended time frame up to 03.05.2025 is not feasible, taking into consideration the delay in the voting process on Resolution Plans. Hence, the CoC in its 12th meeting held on 23.04.2025 authorised the RP to approach this Authority for seeking further extension of the CIRP period by 30 days. The said extension was approved by this Authority on 26.05.2025 in IA(IBC)/850/2025.
It is submitted that since the Resolution Plans were rejected by the CoC with 100% voting on 02.06.2025, the Corporate Debtor is liable to be liquidated under Section 33(2) of the IBC, which is reproduced below:
“Wherein the resolution professional, at any time during the corporate insolvency resolution process but after confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors approved by not less than sixty-six per cent of the voting share to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1)”
In the 13th meeting of the CoC held on 04.06.2025, the Resolution Professional obtained the approval for liquidation of the Corporate Debtor with 93.21% vote share and 6.79% abstained from voting. (Copy of the minutes of the 13th meeting of the CoC held on 04.06.2025 is at Annexure-II of the Application.)
It is submitted that IA Nos.571/2025 - Ms.Reema Agarwal for Rs.72,75,000/- and 572/2025 - M/s.Shivaganga Infrastructure Limited for Rs.3,08,77,000/- seeking avoidance of Preferential Transactions which are pending with this Authority needs to be pursued by the Liquidator proposed to be appointed in the liquidation process.
It is submitted that the members of the CoC are yet to remit an amount of ₹15,26,787/- towards the CIRP costs incurred during the CIRP process. The said CIRP costs were also duly approved by the CoC in their meetings. A detailed letter was sent to the CoC members vide email dated 15.06.2025 to remit the amounts due. (Copy of the email together with the letters is at Annexure-III of the Application)
In view of the aforementioned facts and circumstances, it is submitted that the instant application has been filed before this Authority seeking closure of the CIRP proceedings and allowing liquidation proceedings against the Corporate Debtor by appointing Mr.Murali Mohan Chevuturi, IP (Regn No.IBBI/IPA-003/00307/2020-2021/13464) as the proposed Liquidator and also directing the CoC to remit the pending CIRP costs to the Applicant. (Copy of the AFA and consent of the proposed liquidator is at Annexure – IV of the Application)
We have perused the contents of the application and heard the Resolution Professional. We are satisfied with the facts, circumstances and grounds mentioned in the Application and hence the liquidation of the Corporate Debtor is allowed.
ORDER
The Liquidation of the Corporate Debtor is allowed in exercise of the powers conferred on the Adjudicating Authority under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 on the Adjudicating Authority with the following directions:
a. Liquidation of M/s.Agarwal Reality Developers Private Limited shall be conducted in the manner as laid down in Chapter III of Part II of the IBC, 2016.
b. Mr.Murali Mohan Chevuturi with registration No.IBBI/IPA-003/00307/2020-2021/13464 with email: mohan.chevuturi@gmail.com, Mobile Number:8978844588 is appointed as Liquidator. As per the IBBI website, his AFA is valid up to 30th June, 2026. He has to file his consent in Form-2 before this Tribunal. He shall issue a public announcement stating therein that the Corporate Applicant is in Liquidation.
c. The Moratorium declared under Section 14 of the IBC, 2016 shall cease to operate hereafter.
d. 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.
e. 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.
f. 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.
g. Personnel connected with the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as will be required for managing its affairs.
h. 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.
j. 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, Telangana, the Registered Office of the Corporate Debtor; and the Liquidator.
k. With the above directions, this IA(IBC)(Liq)/7/HDB/2025 in CP(IB) No.136/7/HDB/2023 is allowed and stands disposed of.