Edelweiss Asset Reconstruction Company Limited vs Margra Industries Limited

PER- HEMANT KUMAR SARANGI, MEMBER (T)

This is an application filed by the Resolution Professional, under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as the “Code”) for issuance of directions for liquidation to Corporate Debtor, M/s.Mrgra Industries Limited.

The facts in brief are that one of the financial creditor, had filed an application under Section 7 of the Code bearing number IB- 866 (PB)/2018 for initiation of Corporate Insolvency Resolution Process (CIRP), against the Corporate Debtor. The said application was admitted by this Tribunal on 15.03.2019 initiating CIRP against the Corporate Debtor and there in, appointed Mr. Rajender Kumar Girdhar, as the Interim Resolution Professional (IRP).

Thereafter, the Applicant had issued public announcement in Form-A, dated 29.03.2019, which was published in ‘The Financial Express’ (English) and ‘Jansatta’ (Hindi), both NCR editions on 29.03.2019, calling on the CD to submit their proofs on or before 09.04.2019. On receipt of claims and their verification / collation, the Committee of Creditors (CoC) was constituted by the Applicant on 24.04.2019. The said CoC in its first meeting held on 30.04.2019, decided and resolved for the appointment of the applicant as the Resolution Professional.

Further, during the process of CIRP the Expression of Interest (“EoI”), was issued thrice in several meetings of CoC, with the extended period sought from the Tribunal. Thereafter, during the extended period one party namely Mr. R.P. Khosla had submitted its EoI on vide email on 10.08.2019 and hard copy by courier on 12.08.2019. However, on examination, the same had been found to be ineligible and non-compliant with the requirements of the Invitation of ‘Expression of Interest’.

As the CIRP period was ending on 22.09.2019 and neither any resolution plan had been received nor approval for liquidation of company was passed by the CoC, the applicant as the RP had called for another CoC meeting, being the sixth meeting on 21.09.2019. In the said meeting it was suggested by the members of the CoC for seeking extension of CIRP period by 90 days beyond 180 days and also for inviting fresh EoI by publication of Form-G. Accordingly, the said resolution was approved by 92.29% of members present by ballot voting and as per the final compiled result of voting after conclusion of e-voting; the resolution was approved by the CoC by 92.99% of voting share in favour. This bench by its order dated 11.10.2019, allowed the application and granted extension of time of 90 days beyond 22.09.2019, which has since expired on 22.12.2019.

In anticipation of grant of extension of 90 days by this Adjudicating Authority, another invitation for EoI was made by fresh Form-G on 27.09.2019, the last date for receipt of resolution plan was stipulated to be 21.11.2019. In pursuance of the same one resolution applicant, namely, M/s. Sarvesh Exports Private Limited submitted a Resolution Plan on 21.11.2019 and corrigendum to resolution plan on 20.12.2019. However, the same was found non compliant to the requirements of the RFRP and provisions of the Code by the RP.

The CoC in its ninth CoC meeting, held on 21.12.2019, after all the discussions and deliberations on the entire aspect, concluded that there are no other avenues left but to explore the Liquidation process for CD and accordingly resolutions were passed by the CoC with 92.29% vote share. Following resolutions were passed:

Therefore, in accordance with Regulation 27 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulation, 2016 (“CIRP Regulations”), the erstwhile IRP had appointed two registered valuers, i.e., Mr. Lakhan Lal Gupta and Mr. Vijay Vinod Bhatia, to determine the liquidation value of the Corporate Debtor in accordance with Regulation 35 of CIRP Regulations.

Further, in the same meeting the RP had submitted the estimated liquidation value of the assets of the CD based on the valuation reports obtained from the valuers, is approximately Rs. 18,40,85,597/- as per the report of the valuers.

In the result the application is allowed by ordering liquidation of the corporate debtor, namely M/s.Marga Industries with following directions:

a. That Mr. Rajender Kumar Girdhar, the Resolution Professional of the Corporate Debtor, is relieved from the present assignment as Resolution Professional.

b. The Mr. Paramjit Singh Bhatia, holding Registration No. IBBI/IPA-001/IP-P00961/2017-2018/11582, is appointed as the Liquidator in terms of Section 32(1) of the Code;

c. 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 Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and a fresh Moratorium under Section 33(5) of the Insolvency and Bankruptcy Code shall commence;

e. This order shall be deemed to be notice of discharge to the officers, employees and the workmen of the corporate debtor as per Section 33(7) of the Insolvency and Bankruptcy Code, 2016;

f. The Liquidator is directed to proceed with the process of liquidation in the manner laid down in Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016 and in accordance with the relevant rules and regulations.

g. The Liquidator shall follow up and continue to investigate the financial affairs of the Corporate Debtor in accordance with provisions of Section 35(1) of the Code.

h. The liquidator shall also follow up the pending applications for their disposal during the process of liquidation including initiation of steps for recovery of dues of the Corporate Debtor as per law.

j. Copy of this order be sent to the financial creditors, corporate debtor and the Liquidator for taking necessary steps;

k. C.A. 121(PB)/2020 filed in IB-866(PB)/2020 is disposed of in terms of the aforesaid terms.