M/s Jain Metal Traders vs M/s Magppie Global Houseware Private Limited

This is an application filed by the Resolution Professional, Mr. Ankit Goel under Section 33(2) read with Section 34 of the Insolvency and Bankruptcy Code, 2016 (“Code”) read with the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (“Liquidation Regulations”), for issuance of directions for liquidation of Corporate Debtor, M/s Magpie Global Houseware Private Limited.

The facts in brief stated in the application is as under: -

a) The Applicant submits that this Adjudicating Authority vide its order dated 15.06.2023 had initiated the Corporate Insolvency Resolution Process against M/s Magpie Global Houseware Private Limited (‘Corporate Debtor’) in C.P.(IB) 235 /ND/2023, being an application filed under Section 9 of the Code by M/s Jain Metal Traders (‘Operational Creditor’) and appointed Mr. Girish Kamal Gupta as the Interim Resolution Professional of the Corporate Debtor.

b) The Applicant submits that the Applicant in compliance of the Section 15 of the Code read with Regulation 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 made public announcement in Financial Express (English- Delhi- NCR Edition) and Jansatta (Hindi - Delhi- NCR Edition) on 20.06.2023. Further, the applicant made another public announcement dated 21.06.2024 in Financial Express (English & Gujarati - Ahmedabad Edition)

c) The Applicant submits that the claims of Rs. 57,666,611 have been admitted till date. The CoC comprises of the sole Financial Creditor, M/s UCO Bank Limited with 100% of voting power.

d) It is submitted that in pursuance of the resolution passed in the 2nd meeting of the CoC dated 11.08.2023, the Interim Resolution Professional (IRP) published Form-G on 17.08.2023, inviting Expressions of Interest (EOIs) from Prospective Resolution Applicants (PRAs). The last date for submission of EOIs was fixed as 01.09.2023

e) The 4th meeting of the Committee of Creditors (CoC) was convened on 15.09.2023, wherein the Interim Resolution Professional (IRP) apprised the CoC that out of the five Expressions of Interest (EOIs) received, only three Prospective Resolution Applicants (PRAs) were found to be eligible for submission of Resolution Plans.

The 7th meeting of the Committee of Creditors (CoC) was convened on 07.03.2024. Under the Item No.4 of the said meeting the Resolution Professional apprised the COC members that since they have not received any expression of interest or resolution plan from PRA's on the last date of submission of plan i.e. 17.01.2024, therefore a fresh form G would need to be published. In the said meeting two resolutions were placed for consideration: (i) extension of the Corporate Insolvency Resolution Process (CIRP) by a further 90 days beyond the 270-day period, and re-publication of Form-G or, (ii) initiation of liquidation proceedings against the Corporate Debtor. The CoC, with a 100% voting share, rejected the resolution for extension of the CIRP and re-publication of Form-G, and accordingly approved initiation of liquidation of the Corporate Debtor Debtor and authorized the Applicant i.e. Resolution Professional to move an appropriate application before the Tribunal for initiation of liquidation process of the Corporate Debtor. The relevant extract of the Resolution passed in the 7th CoC meeting is reproduced hereunder as:

This Adjudicating Authority, vide order dated 03.05.2024, issued notice to the suspended directors of the Corporate Debtor, directing them to file their response prior to the passing of any order of liquidation, however there was no appearance or response on part of the Suspended Management.

Since, during the 7th meeting wherein CoC approved the Liquidation of the Corporate Debtor no liquidator was proposed to be appointed. Subsequently, the sole CoC member i.e. UCO Bank vide email dated 16.07.2024 proposed the name of Mr. Madan Mohan Dhupar, an Insolvency Professional having Registration No. IBBI/IPA-002/IPN00860/2019-2020/12768 as the proposed Liquidator from the CoC along with the documents pertaining to Written Consent (Form AA) and Authorization for Assignment (AFA) of the proposed Liquidator.

In pursuance to the above resolution passed in the 7th meeting of the CoC, the Applicant has preferred the present application for passing the order of Liquidation of the Corporate Debtor in terms of the provisions enumerated under Section 33(2) of the IB Code, 2016 and to appoint Mr. Madan Mohan Dhupar as the Liquidator in the matter.

Section 33(2) of the Code provides that the Adjudicating Authority shall pass an order for liquidation of the Corporate Debtor, if approved by the. In the present case, the CoC with 100% (One Hundred Per Cent) has approved the liquidation of Corporate Debtor.

In light of the above, the application is allowed by ordering liquidation of the corporate debtor, namely M/s Magpie Global Houseware Private Limited with following directions:

a) That Mr. Ankit Goel, the Resolution Professional of the Corporate Debtor, is relieved from the present assignment as Resolution Professional.

b) That Mr. Madan Mohan Dhupar, holding Registration No. IBBI/IPA-002/IPN00860/2019-2020/12768 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;

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.

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.

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.

The Liquidator shall submit Preliminary Report to the Adjudicating Authority within seventy-five days from the liquidation commencement date as per Regulation 13 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016;

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

The CoC is directed to pay the remuneration and expenses of the Applicant including that of professional advisors subject to the provisions of IBC Code, 2016 and CIRP Regulations, 2016.

I.A 17/2024 in CP(IB) 235/ND/2023 stands allowed and is disposed of in the aforesaid terms. Let a copy of the order be served to the parties.