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Judgment
I.A. (Liq.) No.14/2025:
1. Heard Ld. Counsels for the parties.
2. Vide separate Order, the Application is allowed and liquidation of the Corporate Debtor is directed. The claim of erstwhile RP for fee/ remuneration for the interregnum is declined.
I.A.No.797/2025:
1. Heard Ld. Counsels for the parties.
2. The suspended Directors claimed to have filed reply. Let rejoinder there to be file with copy to other side. Be listed on 22.01.2026 for arguments.
3. List the case on 22.01.2026.
I.A.No.799/2025:
Heard Ld. Counsels for the parties.
Shri Ganesh R. Ghale, Ld. Counsel representing the I.T. Department, informed that the refund is being processed. After verifying the outstanding TDS demands against the Corporate Debtor, if any, and the needful be done in about three weeks' time. Let the update be reported on 22.01.2026.
This Application is filed on 26.09.2025 under Section 33(2) and Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the National Company Law Tribunal Rules, 2016, for following reliefs: -
a. To pass an Order for the Liquidation of the Corporate Debtor “SSJV Projects Private Limited” having CIN No. U45203KA1998PTC024063 in terms of Section 33 (2) of the Insolvency and Bankruptcy Code, 2016; and
b. To pass an Order appointing Mr. Ravindra Beleyur having IP Regn. No. IBBI/IPA-001/IP-P00189/2017-18/10368, as proposed by the CoC, as the Liquidator of M/s. SSJV Projects Private Limited, whose Written Consent is annexed and marked as Annexure - VII, with the powers and functions vested in him as per Section 35 of the Insolvency and Bankruptcy Code, 2016 r/w the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016;
c. To fix the Fee of the Resolution Professional from the date of filing of Liquidation application with the Adjudicating Authority up to the date of Order of Liquidation by Adjudicating Authority.
Brief facts of the application are given hereunder:
a. The Company Petition bearing C.P (IB) No. 34 of 2024 filed under Section 7 of IBC by Indian Bank to initiate CIRP against SSJV Projects Private Limited (“Corporate Debtor”) was admitted on 04.07.2025 and the Applicant was appointed as Interim Resolution Professional (“IRP”). He was approved as RP by the CoC which was accepted by Adjudicating Authority in IA No. 734/2025.
b. Pursuant to the appointment, the IRP had issued public announcement in “Deccan Herald” (English Paper) and “Viajaya Karnataka” (Kannada Paper) in Karnataka on 09.07.2025 inviting claims from creditors.
c. The RP issued the notice for the 1st Meeting of Committee of Creditors and held the meeting on 01.08.2025. The Current Status of the Affairs of the Corporate Debtor was discussed. The Voting items included appointment of Interim Resolution Professional as Resolution Professional, Fixing of Fee of Resolution Professional, approval of expenses incurred in the first month of IRP, considering the Budget for the CIRP period, reduction of Notice Period and reduction in the interval between Two meetings.
d. The RP obtained quotations from Transaction Auditors and Valuers. However, at the 2nd meeting of CoC, the members advised the RP not to proceed with the Transaction Audit and Valuation, since the CoC recommended for early-stage Liquidation.
e. Accordingly, the third meeting of CoC was held on 09.09.2025 and early Liquidation of the Corporate Debtor on account of fact that the company has no ongoing business operations and there are no tangible assets to realize, further, the company has no employees. The members noted that Section 33(2) which enables the Committee of Creditors to decide, exercising their Commercial Wisdom, for Liquidation of a Corporate Debtor at an early Stage without waiting for submission of Resolution Plans.
f. Canara Bank proposed the name of Mr. Ravindra Beleyur, Insolvency Resolution Professional having Registration Number: IBBI/IPA-001/IP-P00189/2017-18/10368 as the Liquidator. The Consent received from Mr. Ravindra Beleyur is enclosed at Annexure VI. Hence, this Application.
We have heard Ld. Counsel for the applicant besides perusing the material on record.
The provisions of sub-sections (1) and (2) of Section 33 of the Code read as follows:
“33. Initiation of liquidation.-
(1)Where the Adjudicating Authority, —
(a)before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast-track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan under sub-section (6) of section 30; or (b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, it shall:
(i)pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter;
(ii)issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered.
(2)Where the resolution professional, at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors 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).”
Prescribed period for filing application: The present application being under sub-section (2) of Section 33 of the IBC, 2016, limitation is not a bar.
Appointment of Liquidator: The CoC, in its 3rd meeting held on 09.09.2025, approved the appointment of Mr. Ravindra Beleyur, Insolvency Professional, (Registration No. IBBI/IPA-001/IP-P00189/2017-18/10368) as Liquidator of the Corporate Debtor, with the requisite voting majority. Written consent of the proposed Liquidator is on record. In this regard the following Resolution was passed:
(B)To consider appointment of Liquidator for conducting the Liquidation of SSJV Projects Pvt Ltd:
RESOLVED THAT the CoC hereby approves and recommends the appointment of Mr. Ravindra Beleyur, Insolvency Professional, (Registration No. IBBI/IPA-001/IP-P00189/2017-18/10368), and who have submitted their written consent to act as the Liquidator of the Corporate Debtor, subject approval by the Hon'ble National Company Law Tribunal (NCLT).
The same was approved with the following majority:
| Sl. No. | Financial Creditor | Percentage | Remarks |
|---|---|---|---|
| 1 | Canara Bank | 76.13% | Approved |
| 2 | ICICI Bank | 0.33% | Rejected |
| 3 | Indian Bank | 23.54% | Approved |
The CIRP Regulations 39B, 39C and 39D are examined hereunder.
a. Liquidation Cost [Regulation 39B]- The “Estimated Liquidation Cost” as discussed and approved in the 3rd CoC meeting under Regulation 39B of the CIRP Regulations, 2016, at ₹23,32,000 (Rupees Twenty-Three Lakh Thirty-Two Thousand only). The Liquidator shared that the actual expenses to be approved/ ratified by the Stakeholders Consultation Committee to be formed post-liquidation commencement.
b. Assessment of Sale as a going concern [Regulation 39C] - The matter of sale of the Corporate Debtor as a going concern was considered by the CoC. The Liquidator is empowered, as per law, to explore such a sale, if feasible.
c. Fees of the Liquidator [Regulations 39D]- Regarding the fees of the Liquidator, the CoC approves Rs.2 lakh per month as the fee payable to the Liquidator for the period of 90 days to explore Compromise or to sell the Corporate Debtor as a going concern.
d. In regards to the fees to be paid to Resolution Professional from the filing of this Application till the date of Order, reference shall be made to the case of Ravi Sankar Devarakonda v. Avasarala Technologies Ltd. and Ors., Company Appeal (AT) (CH) (Ins) No. 510/2025 decided on 24-Oct-25 wherein Hon'ble NCLAT has held the following in Para 21:
“21... Claim to payment of a fee by a professional will always depend upon the principles of quid pro quo, meaning that entitlement of a fee would be only in lieu of the services discharged by the Interim Resolution Professional in his official capacity. There was nothing on record, which was brought by the Appellant to show that he had effectively discharged any of the functions, which could be correlated with the principles of quid pro quo, to fall to be an act carried in furtherance of CIRP process, during the period of interim stay.”
e. As per the Minutes of the 1st CoC Meeting dated 01.08.2025, the fees of the Resolution Professional up to the liquidation stage already stands determined in terms of Regulation 36B of the CIRP Regulations, 2016. The present application was filed on 26.09.2025 and the order is being pronounced on 27.11.2025, thereby covering a period of approximately two months. During this period, although the RP claimed to have pursued the refund by contacting Income Tax Authorities, yet tangible or significant progress or CIRP-related activity has been placed on record to indicate any substantive steps or development during this period by the RP capable of attracting fee for the interregnum, particularly when the Liquidator now appointed will be continuing the process forward.
f. In view of the principle of quid pro quo laid down by the Hon’ble NCLAT in Ravi Sankar Devarakonda v. Avasarala Technologies Ltd. & Ors., it is held that fee for the said two-month window cannot be granted in absence of demonstrable services rendered, and at best, only administrative expenses, if duly supported by documentation, be considered as part of the CIRP costs by the CoC.
g. Accordingly, upon fulfilment of the essential conditions of Section 33(2) of the Code, the application is allowed, and the Corporate Debtor, SSJV Projects Private Limited, is directed to be liquidated as per the provisions of Chapter III of the Code. Simultaneously, following directions are issued:
In terms of Section 33(5) of the Code, subject to Section 52, no suit or other legal proceeding shall be instituted against the Corporate Debtor except with prior approval of the Adjudicating Authority.
This liquidation order shall be deemed to operate as notice of discharge to the officers, employees, and workmen of the Corporate Debtor unless the business is continued during liquidation by the Liquidator.
All powers of the board of directors, key managerial personnel, and partners shall stand vested in the Liquidator and be exercised by her.
The personnel of the Corporate Debtor and all stakeholders shall extend full cooperation and assistance to the Liquidator as required for the conduct and management of the liquidation, in accordance with Section 19 of the Code.
The Liquidator shall make a public announcement in Form B of Schedule II in accordance with Regulation 12 of the Liquidation Process Regulations, 2016, within five days from the date of receipt of this order. Creditors shall be given notice to submit their claims within 30 days of the liquidation commencement date.
The Liquidator shall individually intimate statutory authorities (including RPFC, RD-ESI, Income Tax, GST, Chief Inspector of Factories, ESI, Registrar of Companies, and others as deemed appropriate) about commencement of liquidation and maintain records of such intimations as per Regulation 45(3) of the Liquidation Regulations.
The Liquidator shall submit a preliminary report within 75 days of commencement of liquidation and thereafter periodic progress reports as per Regulation 15.
A copy of this order be supplied forthwith to the Liquidator and the Registrar of Companies, Bengaluru. On the email address of Liquidator being provided, the Registry shall forward a soft copy of this order to liquidator.