Punjab National Bank vs Sohrab Spinning Mill Ltd.

The present application has been filed by the liquidator for seeking liquidation of the corporate debtor. Ld. counsel appearing for the liquidator submits that the CoC in its 14^th Meeting held on 09.10.2024 vide Agenda Item No.2, has resolved to liquidate the corporate debtor and the said resolution has been passed with 100 per cent voting share by the sole member of the CoC i.e. Punjab National Bank.

Ld. counsel for the liquidator further submits that vide IA No.810/2024 the CoC in its 15^th meeting dated 13.03.2024 has approved the name of Mr. Rajesh Mehru having Registration No.IBBI/IPA-001/IP/P-02663/2022-23/14082 as liquidator. In terms of the above, the corporate debtor is ordered to be liquidated and Mr. Rajesh Mehru is appointed as liquidator of the Corporate Debtor and his consent Form AA and AFA is also annexed with the application. He is directed to carry out the liquidation process inter alia in terms of the following directions:

The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 (viz. Sections 35, 36, 38, 39 and 41 thereof) and other relevant rules and Regulations including Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 as amended up to date, enjoined upon him.

The Liquidator shall issue the public announcement that the Corporate Debtor is in liquidation. In relation to officers/employees and workers of the Corporate Debtor, taking into consideration Section 33(7) of IBC, 2016, this order shall be deemed to be a notice of discharge.

The Liquidator shall investigate the financial affairs of the Corporate Debtor particularly, in relation to preferential transactions/ undervalued transactions and such other like transactions including fraudulent preferences and file a suitable application before this Adjudicating Authority.

In terms of section 178 of the Income Tax Act, 1961, the Liquidator shall give necessary intimation to the Income Tax Department. In relation to other fiscal and regulatory authorities which govern the Corporate Debtor, the Liquidator shall also duly intimate about the order of liquidation.

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.

The Liquidator is directed to investigate the financial affairs of the Corporate Debtor in terms of the provisions of Section - 35(1) of IBC, 2016 read with relevant rules and regulations and also file its response for disposal of any pending Company applications during the process of liquidation.

The Liquidator shall submit a Preliminary report to this Tribunal within 75 (seventy-five) days from the liquidation commencement date as per regulation. 13 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016. Further such other or further reports as are required to be filed under the relevant Regulations, in addition, shall also be duly filed by him with this Adjudicating Authority.

Copy of this order be sent to the financial creditors, Corporate Debtor and the Liquidator for taking necessary steps and for extending the necessary cooperation in relation to the Liquidation process of the Corporate Debtor, viz., company-in-liquidation.

The Registry is directed to communicate this order to the Registrar of Companies, having jurisdiction over the Corporate Debtor and the Insolvency and Bankruptcy Board of India;

It goes without saying that fee of the Liquidator would be payable in terms of the provisions of Section 34 (7) of the IBC, 2016 read with Regulation 4 of IBBI (Liquidation Process) Regulation 2016.

Thus, IA No.2/2024 stands allowed and disposed of accordingly.

The present application has been filed under Rule 11 of the NCLT Rules, 2016 for placing on record the minutes of 15^th CoC meeting dated 13.03.2024 along with Form AA of Mr. Rajesh Mehru. The same is taken on record subject to just exceptions and IA No.810/2024 is disposed of accordingly.

This application has been filed for placing on record 20th Progress Report for the period from 16.12.2023 to 15.01.2024 along with affidavit. The same is taken on record subject to just exceptions. Thus, IA No. 486/2024 is disposed of accordingly.

This application has been filed for placing on record 19th Progress Report for the period from 1.12.2023 to 15.12.2023 along with affidavit. The same is taken on record subject to just exceptions. Thus, IA No. 489/24 is disposed of accordingly.

This application has been filed for placing on record 13th Progress Report for the period from 1.09.2024 to 15.09.2024 along with affidavit. The same is taken on record subject to just exceptions. Thus, IA No. 544/24 is disposed of accordingly.

This application has been filed for placing on record Progress Report for the period from 16.01.2024 to 15.03.2024 along with affidavit. The same is taken on record subject to just exceptions. Thus, IA No. 796/2024 is disposed of accordingly.