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Judgment
ORDER
Dr. Deepti Mukesh, Hon'ble Member (J)
This is an application filed by the Resolution Professional (the “the Applicant”)under Section 33 (1) of Insolvency and Bankruptcy Code, 2016 (hereinafter referred as the “Code”) for the order for liquidation of the corporate debtor, M/S Macor Packaging Limited.
Vide Order dated 31st July, 2020the CIRP was initiated against the Corporate Debtor M/S Macor Packaging Limited under Section 9 of Insolvency and Bankruptcy Code, 2016, and the applicant MohdNazim Khan was appointed asInterim Resolution Professional.
Thereafter, in terms of Regulation 6 (1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) the said Interim Resolution Professional made a public announcement in FORM-A on 08.08.2020 in Financial Express (English Edition) and Jansatta (Hindi Edition). The Public announcement was also uploaded in the website of Insolvency and Bankruptcy Board of India (IBBI).
That the Applicant has convened the First COC Meeting on 29.08.2020 where the sole COC member has confirmed his appointment as Resolution Professional with 100% Voting Rights.
That it is submitted that pursuant to the provisions of Section 5(14) of the IBC, 180 days of Insolvency Resolution Process Period Commenced on 31.07.2020 and the same is set to expire on 27.01.2021.
That the Applicant Resolution Professional was in receipt of Letter dated 05.10.2020 from Redhex IT Solutions Private Limited, who is the Sole COC Member with 100 % Voting Rights, it was pointed out that on going through the Information Memorandum and Annual accounts for last three years of the Corporate Debtor, it has been seen that the Corporate Debtor is non-operational and assets are not sufficient to cover even CIRP cost as such, hence in order to save further expenses, the Corporate debtor be Liquidated. Thereafter Resolution Professional convened the Second Meeting of CoC on 19.10.2020.
That after detailed deliberations in Second COC Meeting held on 19.10.2020, the COC member has passed the resolution for the Liquidation of the Corporate Debtor with 100% Voting Rights.
The existing Resolution Professional Mr Mohd Nazim Khan consented to act as the liquidator, in the said Meeting. COC passed the following Resolution with 100 %Voting Rights:
“RESOLVED THAT Committee of Creditors of Macor Packaging Limited (Under CIRP), in view of the insufficient Assets of the Corporate Debtor to cover the CIRP and Liquidation Costs and pursuant to the provisions of Section 33 and other applicable provisions of the Insolvency and Bankruptcy Code, 2016 and Rules and Regulations framed thereunder, Macor Packaging Limited (Corporate Debtor) be and is hereby liquidated in the manner as laid down in Insolvency and Bankruptcy Code, 2016.
RESOLVED FURTHER THAT pursuant to the provisions of Section 34 and other applicable provisions of the Insolvency and Bankruptcy Code, 2016 and Rules and Regulations framed there under and other applicable provisions of the Companies Act, 2013 and Rules framed thereunder, Mohd Nazim Khan (IBBI Regn No: IBBI/IPA-002/IP-N00076/2017- 18/10207), Resolution Professional be and is hereby appointed as the Liquidator for the purposes of liquidation of Macor Packaging Limited (Corporate Debtor)
The Corporate Debtor is non-operational and assets are not sufficient to cover CIRP cost, therefore it is seen from the provisions of IBC, 2016 is to only press the liquidation mode as provided under the provisions of section 33 of IBC, 2016 of which the relevant sub-section 1 of section 33 is reproduced hereunder ;
“33.(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.”
Ld. RP represents that valuation report as required to be obtained under the provisions of IBC, 2016 from the registered valuer in relation to the fair value of the assets of the corporate debtor as well as its liquidation value has been duly done bytwo registered valuers.The fair value of assets and liquidation value by both the valuers as per 31.07.2020 is NIL.
This Tribunal in the circumstances taking into consideration the provisions of law as well as on facts is ordering for liquidation of the corporate debtor and in the circumstances the corporate debtor stands liquidated and the incidence of liquidation to follow, on and from the date of this order in terms of the provisions of IBC, 2016 and more particularly as given in Chapter – III of IBC, 2016 and also in terms of Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 along with the following directions:
a. Mohd Nazim Khan Resolution Professional holding registration no. IBBI/IPA- 002/ IP-N00076/2017-18/ 10207, is appointed as Liquidator and has given consent to act as the liquidator vide written communication dated 19.10.2020, under section 34 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
b. Mohd Nazim Khan directed to issue Public Announcement stating that the corporate debtor is in liquidation, in terms of Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016;
c. The 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. In terms of section 178 of the Income Tax Act, 1961, the Liquidator shall give necessary intimation to the Income Tax Department. Similarly, in relation to other fiscal and regulatory authorities which governs the Corporate Debtor, the Liquidator shall also duly intimate about the order of liquidation
e. The Order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and that a fresh Moratorium under Section 33(5) of the Insolvency and Bankruptcy Code shall commence;
f. This order is deemed to be a 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;
g. The Liquidator is directed to proceed with the process of liquidation in a manner laid down in Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016 and in accordance with the relevant regulations.
h. The Liquidator shall submit a 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.
I.A. 4961(ND) /2020 filed in IB 2560(ND)/ 2019 is allowed and the corporate debtor is ordered to be liquidated and disposed of in the aforesaid terms.
The office is directed to communicate a copy of the order to the Operational Creditor, the Corporate Debtor and the Liquidator at the earliest but not later than seven days from today. A copy of this order be also sent to the ROC for updating the Master Data. ROC shall send compliance report to the Registrar, NCLT.