M/s. Shivalik Industries vs Reaselack Polymers P. Ltd.

[ PER: BENCH ]

I. The instant Application is filed by the Resolution Professional (RP) of M/s. Reaselack Polymers P. Ltd. (CD) under Section 33(2) of IBC, 2016 seeking to pass an Order of Liquidation of the Corporate Debtor and direct the COC to settle the dues (fee and CIRP Expenses incurred) of the Resolution Professional.

II. This Adjudicating Authority, vide Order dated 20.10.2022 admitted the Company Petition bearing CP (IB) No.762/9/HDB/2019 filed by M/s. Shivalik Industries (OC) M/s. Reaselack Polymers P. Ltd. (CD) and initiated CIRP process by appointing Mr. K. Vatsa Kumar as the Interim Resolution Professional (IRP). Later, in the 1^st COC Meeting held on 29.11.2022, he was confirmed as Resolution Professional.

III. On assuming charge as Interim Resolution Professional, the Applicant took various steps/actions for completing the CIRP process.

IV. Against the public announcement, the total claim received is Rs.11,62,67,840/- and admitted the amount of Rs.10,98,99,931/-. In the COC, Indian Bank is the lone Financial Creditor with 100% voting share.

V. RP had filed an IA 201/2023 against the suspended directors for non-cooperation, and the Adjudicating Authority vide orders dated 30.03.2023 directed the suspended directors to extend all possible co-operation to the RP. Despite direction, the required information was not submitted by the suspended directors. When the contempt of court notice was sent, the suspended directors furnished the Tally data as on 01.11.2023, Audited Financials as on 01.04.2022 and Provisionals as on 31.10.2022 on 27.05.2023.

VI. The Fair Market Value and Liquidation Value of the 3 asset classes is as below:

VII. In Response to the publication in Form-G on 24.01.2023, 8 EOIs were received. In response to the RFRP, two Resolution Plans were received from the following Prospective Resolution Applicants:

Sri Sharad Arun Kamble in consortium with Sri Pradeep Damani; and

Sri Kapil Mantri

VIII. After discussions & negotiations with the above Prospective Resolution Applicants on 05.07.2023, Sri Sharad Arun Kamble in consortium with Sri Pradeep Damani submitted its Revised Plan amounting to Rs.240 lakhs on 11.07.2023, which was approved by the COC on 11.07.2023. The Resolution Plan submitted by Mr. Kapil Mantri was not considered as the same was not in compliance with RFRP.

IX. Pending decisions of the COC, interim minutes of the 7^th and 8^th COC were issued on the deliberations of 7^th and 8^th COC Meetings dated 27.06.2023 and 15.07.2023 respectively.

X. In the 8^th COC Meeting held on 15.07.2023, the COC passed the following resolution with 100% voting share:

XI. The CIRP cost incurred till 31.08.2023 was Rs.16,06,084/-(Annexure-3), out of which, Rs.8,19,143/- was pending for reimbursement to the RP by Indian Bank.

XII. The last date for completion of the CIRP of the Corporate Debtor, after considering the extensions from time to time was 27.09.2023 and there was no valid Resolution Plan. Hence, the instant application.

XIII. We have heard the Learned Resolution Professional. A perusal of the contents of the application would show that the Resolution Professional has made his best efforts to keep the Corporate Debtor as a going concern, but since no Resolution Plan, which was viable, was received, the CoC with 100% voting has recommended for liquidation of the Corporate Debtor.

XIV. From the above, it would appear that despite all possible steps as required under the Code, taken during the CIRP, the CoC did not receive any viable proposal for revival of the Company.

XV. In view of the facts stated in the Application, this Tribunal allows the Application with the following directions.

XVI. With the above directions, IA.No.1570/2023 in CP (IB) No.762/9/HDB/2019 is allowed and stands disposed of.