Punjab National Bank vs M/s. Shri Vishnu Eatables(INDIA)Ltd. & Ors.

ORDER

I. “Direct the liquidation of the Corporate Debtor as referred under sub-section (2) of Section 33 of the Insolvency and Bankruptcy Code, 2016 and in the manner as laid down in Chapter III of the code, 2016;

II. To issue a public announcement stating that the corporate debtor is in liquidation;

III. Require such order to be sent to the authority with which the corporate debtor is registered;

IV. To issue suitable directions to the officers concerned about the initiation of the Liquidation of the corporate debtor”.

“29.

The RP convened 14^th CoC Meeting on 28.06.2023, wherein the RP put forth agendas pertaining to the appointment of Mr. Hemanshu Kumar Jetley as the Liquidator for the liquidation process of the Corporate Debtor and the fees of the liquidator. Wherein, a voting was conducted though raise of hands. Wherein the UCO bank have abstained from voting citing that they had sent the matter to their head office (HO) for approval. Which they had not yet received. However, Punjab National bank, holding the majority share of 90.88%, approved the appointment of Mr. Hemanshu Jetely as the liquidator for the Corporate Debtor. Additionally, they approved a consolidated free amounting Rs. 3,00,000/- (excluding GST) be payable to the liquidator for the liquidation period. Resolution passed by the members of CoC is reproduced hereunder:

AGENDA ITEM NO. 14.07 TO RECOMMEND THE APPOINTMENT OF MR. HEMANSHU

JETLEY AS LIQUIDATOR SUBJECT TO THE APPROVAL OF ADJUDICATING AUTHORITY

“RESOLVED THAT, the appointment of Mr. Hemanshu Jetley to act as Liquidator in the matter of M/s Shri Vishnu Eatables (India) Limited be and is hereby approved by COC members having more than 66% voting rights, subject to the approval of the Adjudicating Authority.”

AGENDA ITEM NO. 14.08 TO CONSIDER AND APPROVE THE FEE AND EXPENSES OF

LIQUIDATOR IN ACCORDANCE WITH REGULATION 39 D OF IBBI (CIRP) REGULATIONS 2016

“RESOLVED THAT a consolidated fee of Rs. 3,00,000/-(excluding GST) be is and hereby approved and payable to the Liquidator for the complete duration of the liquidation period.”

“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.

“33 (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 ¹[approved by not less than sixty-six per cent. 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)

Explanation.-- For the purposes of this sub-section, it is hereby declared that the committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution under sub-section (1) of section 21 and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum.