Jalgaon Janta Sahakari Bank Ltd vs Desimran Cartons Pvt Ltd

Mr. Prakhar Tandon, counsel appearing for the Resolution Professional is present through virtual hearing.

The above Application is filed for liquidation of the Corporate Debtor Company. Heard the counsel appearing for the RP and the above Application is allowed. Detail order would follow:

List other pending application on 27.04.2022.

The above application I.A. No. 179/2022 is filed by Resolution Professional, Mr. Vivek Murlidhar Dabhade (hereinafter referred to as the “Applicant”) seeking liquidation of Desimran Cartons Private Limited (hereinafter referred to as the “Corporate Debtor”) under Section 33(1)(a) 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 Applicant mentions that this Tribunal vide its order dated 23.07.2021 in Company Petition No. 1808/IBC/MB/2019 admitted the petition under Section 7 of the Code, filed by Jalgaon Janta Sahakari Bank Limited (hereinafter referred to as the “Financial Creditor”) and Corporate Insolvency Resolution Process (hereinafter referred to as the “CIRP”) was initiated against Desimran Cartons Private Limited. Mr. Vivek Murlidhar Dabhade was appointed as the Interim Resolution Professional (hereinafter referred to as the “IRP”) of the Corporate Debtor by this Tribunal vide Order dated 23.07.2021.

B. It is further stated by the Applicant that on 30.07.2021 a public announcement was made inviting claims from the Creditors of the Corporate Debtor in newspapers namely The Indian Express (English Newspaper, Ahmedabad Edition), The Financial Express (English Newspaper, Mumbai Edition), Punyanagari (Marathi Newspaper, Marathi Newspaper) and Gujarat Guardian (Gujarati Newspaper).

C. On 21.08.2021, in the first meeting of the Committee of Creditors (hereinafter referred to as the “CoC”) the Applicant was appointed as the Resolution Professional.

D. The Counsel for the Applicant states that an advertisement, inviting Expression of Interest (EoI) in Form G was published on 06.10.2021 respectively in Free Press Journal (English Newspaper), Navrashtra (Marathi Newspaper) and Sushila Times (English Newspaper), 21.20.2021 being the last date for receipt of Express of Interest and 05.12.2021 being the last date for submission of Resolution Plan. Thereafter, the Applicant received only 1 Expression of Interest was received by the “Sarla Performances Fibers Limited” till the last date of submission of the Resolution Plan.

E. On 22.12.2021, the Applicant informed the CoC Members that the last date for submission of Resolution Plan has expired on 05.12.2021 but no Resolution Plan from Sarla Performances Fibers Limited has been received.

F. The Applicant further states that in the 6^th CoC meeting dated 03.01.2022 the members decided to opt for Liquidation of the Corporate Debtor with 100% voting as well as appointing Applicant as the Liquidator of the Corporate Debtor with 100% voting share. The relevant extract of the resolution is reproduced herein below for ready reference:-

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 7^th CoC meeting that the CoC has with 100% majority decided to liquidate the Corporate Debtor. The CoC has appointed the Applicant as Liquidator to carry on the process of Liquidation of the Corporate Debtor. The Applicant has agreed to act as Liquidator to carry on the process of Liquidation and given his consent to act as Liquidator. This bench, therefore allows the above Interlocutory Application Number 179 of 2022 and passed the following:

The above I.A. No. 179/2022 is allowed and the Corporate Debtor Desimran Cartons Private Limited is ordered to be liquidated.

a. Mr. Vivek Murlidhar Dabhade, having Registration No. IBBI/IPA-001/IP-P00306/2017-18/10570 and having office at: B-203, Devgiri, Ganeshmala, Singhad Road, Pune, Maharashtra 411030 is hereby appointed as the Liquidator as provided under Section 34(1) of the Code.

b. That the Liquidator for conduct of the liquidation proceedings would be entitled to the fees in the following manner:

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. 179 of 2022 is hereby allowed and disposed of.