Mr. Chandrasekhar Sagutoor vs Mr. Poovazhagan

IA/806/2022 has been filed by the RP in the matter seeking the following reliefs:-

"In light of the above, it is therefore prayed that this Hon'ble Tribunal may be pleased to pass orders requiring the Corporate Debtor to be liquidated and pass such further orders as this Hon'ble Tribunal deems fit and thus render justice."

MA/81/2021 was filed under Section 19(1)(2) of the Insolvency & Bankruptcy Code, 2016 seeking the following reliefs:

"a. Pass order under Section 19(2) of the Code directing the Respondent to forthwith furnish the Annual Financial Statements for the period 2016-17 to 2020-21 and Articles and Memorandum of Association together the entire Tally Data for the financial years and Statutory Registers.

b. Pass such other or further orders as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the case and thus render justice."

It is seen from the Application that vide order dated 02.03.2022 in CP/748/2018 the Corporate Debtor was admitted to CIRP and IRP

was appointed. Vide order dated 03.01.2022 in MA/121/2021 the Applicant herein was appointed as the RP.

It is submitted that the only assets of the Corporate Debtor are two manufacturing facilities comprising of land, factory building and plant and machinery at the below locations in the State of Tamil Nadu.

It is submitted that as on date, certain third parties are in the premises at Plant-2 and the properties are not handed over to the Resolution Professional so far.

This Tribunal vide order dated 18.02.2022 in IA/1145/2021 excluded the period of 180 days in the CIRP of the Corporate Debtor.

Vide order dated 14.03.2022 in IA/165/2022 the CIRP period of the Corporate Debtor was extended by further period of 90 days.

It is seen that three times the Form-G has been issued by the Applicant herein. However, no resolution plan was received.

It is seen that (12^{\text{th}}) meeting of the CoC was held on 27.06.2022. In all 12 CoC meeting have been held in the matter.

The CoC of the Corporate Debtor comprises of one Financial Creditor i.e., Indian Overseas Bank.

In the (12^{\text{th}}) CoC meeting the CoC with (100%) majority has resolved as under: - (page Nos. 56 and 57 of the Application).

To approve the decision on liquidation of the corporate debtor and authorise the Resolution Professional to file application for liquidation of the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.

"RESOLVED THAT the CoC be and hereby approve for initiation of liquidation of the corporate debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 and the Resolution Professional be and hereby authorized to file the necessary applications, deeds and things that may be required to file before the Adjudicating Authority for initiation of liquidation of the corporate debtor."

To approve the estimated cost of Liquidation and the plan for contribution for meeting the liquidation cost under 39B of The Insolvency and Bankruptcy Board of

"RESOLVED THAT the estimated liquidation cost (excluding liquidator fee) or Rs. 13.96 Lakhs excluding applicable GST be and hereby approved by the CoC in the event of Liquidation order passed by the Adjudicating Authority and the member of the Committee of Creditors shall contribute funds as per the voting share".

"FURTHER RESOLVED THAT the approved expenses as and when incurred shall form part of Liquidation cost".

Poll Result: Accepted

Voting Table:

Form-H in the matter was not filed along with the Application by the Ld. RP. Vide order dated 13.09.2022 the RP was directed to file Form-H.

In compliance of the order dated 13.09.2022 Form-H was filed under SR.No.5565 dated 11.10.2022.

The suspended director was represented by the Ld. Counsel Ms. Vaiduriya in the hearing held on 02.08.2022.

In relation to IA/IBC/81/2021 it is seen that the RP in para 2 of the Application has requested for certain documents to be furnished by the Respondent / suspended Board of Directors. In

response, an Affidavit has been filed by the Respondent on 16.06.2022. Several interim orders were passed in the matter on 19.07.2021, 01.11.2021, 06.12.2021, 28.03.2022, 29.04.2022, 16.06.2022 and 19.07.2022. It is required to be noted that the Corporate Insolvency Resolution Process in respect of the Corporate Debtor was triggered under the instance of the Corporate Debtor itself under Section 9 of Insolvency and Bankruptcy Code, 2016. Under the circumstances, we direct the Respondents to provide the copy of the documents referred to in para 2 of the Application to the Applicant / proposed Liquidator within a period of 15 days from the date of this order. Since we are inclined to order for liquidation of the Corporate Debtor, the proposed liquidator appointed, if necessary can file an application seeking cooperation of the board in the liquidation process under Regulation 9 of the IBBI (Liquidation Process) Regulations, 2016. With the above said directions, MA/81/2021 stands disposed of.

In so far as IA/806/2022 is concerned, in view of the resolution passed by the CoC with 100% voting majority to liquidate the Corporate Debtor in absence of any resolution plan, this Tribunal is forced to put this Corporate Debtor into liquidation.

It is seen from the application that the written communication of the proposed Liquidator Mr. Chandrasekhar Sagutoor with Reg. No: IBBI/IPA-001/IP-P00960/2017-2018/11581 (email id: [email protected]) is annexed at page Nos. 60 & 61 of the Application.

Apropos, it can be seen that it satisfies the mandate of 66% voting share under Section 33 (2) of the IBC, 2016. The Section 33 (2) of the IBC, 2016 is extracted hereunder:-

"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 approved by not less than sixty-six percent of the voting share 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)."

It is also seen from the records that the Applicant herein has accorded the written consent, Form AA to act as the Liquidator of the Corporate Debtor and further the Applicant has placed on record a valid AFA till 09.10.2023.

In the circumstances, we hereby order the liquidation of the Corporate Debtor Juku Orchem Pvt. Ltd. Mr. Chandrasekhar Sagutoor with Reg. No: IBBI/IPA-001/IP-P00960/2017-

2018/11581 (email id: [email protected]) is appointed as the Liquidator of the Corporate Debtor to carry out the liquidation process subject to the following terms of the directions:-

With the above directions, this IA(IBC)/806(CHE)/2022 stands allowed.