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Judgment
The above application I.A. No. 1564/2022 is filed by Resolution Professional, Mr. Manoj Kumar Jain (hereinafter referred to as the "Applicant") seeking liquidation of Infro Alliance Trading Private Limited (hereinafter referred to as the "Corporate Debtor") under Section 33 (1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter called as “the Code”), praying for following reliefs:
a. To pass an Order under Section 33 of the Insolvency and Bankruptcy Code, 2016 to initiate the Liquidation Process against Infro Alliance Trading Private Limited (Corporate Debtor).
b. Pass ad-interim and interim reliefs in terms of Clause (A);
c. Pass any such other order or order(s) which may be deemed fit, proper and just under the circumstances of the case.
The brief facts of the application are as follows:
A. The Applicant mentions that this Tribunal vide its order dated 31.08.2021 in Company Petition No. 4537/IBC/MB/2018 admitted the petition under Section 9 of the Code, filed by European Projects & Aviation Limited (hereinafter referred to as the “Operational Creditor”) and Corporate Insolvency Resolution Process (hereinafter referred to as the “CIRP”) was initiated against the Corporate Debtor. B. On 24.12.2021 paper publication in Form A in the Free Press Journal (in English) and in Navshakti (in Marathi). C. On 20.01.2022, the 1st meeting of the Committee of Creditors (hereinafter referred to as the “CoC”) took place wherein the Applicant was appointed as the RP of the Corporate Debtor by the CoC. D. In the 3rd CoC dated 07.06.2022 the CoC in the following two options were discussed -
OPTION – A
To publish fresh invitation (EOI) to seek fresh bids towards Expression of Interest and Resolution Plans from prospective applicants.
OR
OPTION – B
To approve liquidation proceedings against the Corporate Debtor.
The Resolution Professional submitted the current status of Corporate Debtor during the meeting.
Current Status-
No business operations being carried out since FY-2011-2012 and no related revenue generation since past few years. ii. No fixed assets available with the Corporate Debtor. iii. The only available assets with the Corporate Debtor are unlisted equity shares of European Projects & Aviation Limited, listed shares in small quantity of Syndicate Bank Limited and Debtors etc. iv. The Resolution Professional confirmed that No Resolution Plan was received by him at all till 07.03.2022.
No staff or people on payroll for the past few years i.e. since 2018. vi. On 20.06.2022 was the last day of the 180-day CIRP period.
E. The Applicant further states that in the 3rd CoC meeting dated 07.06.2022 the CoC with 100% voting decided to opt for Liquidation The relevant extract of the resolution is reproduced herein below for ready reference:-
In the event COC opted OPTION “B” namely to approve and initiated liquidation proceedings u/s 33 of Insolvency and Bankruptcy (Liquidation Process) Code 2016 against the Corporate Debtor, the COC need to authorize filing of the Liquidation Application by the Resolution Professional with the appropriate adjudicating authority in respect of the Corporate Debtor. Therefore, the Committee of Creditors / members took note/ reviewed given their consent on the same and the following Resolution was passed:
“RESOLVED THAT Mr. Manoj Kumar Jain, the Resolution Professional for the Corporate Debtor, be and is hereby authorized to file an application at the earlier, with the appropriate adjudicating authority, for commencement of liquidation proceedings in respect of the Corporate Debtor as per the provisions u/s 33 of the IBC, 2016.”
“RESOLVED FURTHER THAT, Mr. Manoj Kumar Jain, Resolution Professional for the Corporate Debtor be and is hereby authorized to do all acts, things, deeds, and actions that are usual, necessary, proper and relevant to give effect to the aforesaid decision of the COC.”
The above resolution was approved with 100% voting by the COC members.