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Judgment
Per: Rajeswara Rao Vittanala, Member (J)
I.A.No.427/2020 in C.P.(IB)No.322/BB/2019 is filed by Mr. Shankar B Iyer (Applicant/Resolution Professional) U/s. 33 (2) of the IBC, 2016, by inter-alia seeking an order of Liquidation, liquidating the Corporate Debtor; appoint him as a Liquidator etc.
Brief facts of the case, which are relevant to the issue, in question, as follows:
Initially, Mr. Rajendra. P (Petitioner) has filed C.P.(IB)No.322/ BB/2019, U/s. 9 of IBC, 2016, R/w Rule 6 of I&B (AAA) Rules, 2016, by inter-alia, seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Indiranagar Chit Fund and Trading Company Private Limited (Respondent/Corporate Debtor) on the ground that it has committed default for an amount of Rs.20,02,250/-. Accordingly, the case was admitted by this Adjudicating Authority, vide Order dated 28.01.2020 by initiating CIRP in respect of the Corporate Debtor, appointing IRP imposing moratorium etc.
The Adjudicating Authority vide order dated 02.09.2020, excluded 77 days from CIRP period on account of days lost due to lockdown. The CIRP completion date was thereby revised to 12.10.2020. Further, the question of CIRP or Liquidation was put up to the COC on the meeting held on 06.10.2020, considering the progress of the CIRP.
The Financial Summary of the status of the Corporate Debtor as on date is as follows:
| Admitted Claims to 18-Sep-20 (OC's) | Rs.21.98 Crores |
| Admitted Claims to date (Employees) | Rs.0.13 Crores |
| Total Liabilities | Rs.22.11 Crores |
| Receivables | Rs.9.0 Crores |
| Deposits with Registrar | Rs.1.5 Crores |
| Vehicles and Office Assets (Estim) | Rs.0.1 Crores |
| Total Assets | Rs.10.6 Crores |
Further, there are no Fixed Assets in the name of the Company apart from the above. In the light of unlikelihood of any resolution plans emerging given that the Company was not a going concern since May 2019 when an FIR has been filed against the promoters, he has put up the matter for vote on extension of CIRP or for liquidation of the Corporate Debtor to the COC.
It is stated that the 4th Meeting of the COC of the Respondent took place on 06.10.2020 at 8:00 PM, whereby, the COC resolved to approve Liquidation of the Corporate Debtor by a vote of 100% of the vote share. The COC also resolved to appoint Shri Shankar B Iyer as the Liquidator with a voting share of 100% and in line with Sec 34(1) of the IBC Code.
Heard Shri Susheel Shankar, learned Counsel for the Applicant, through Video Conference. We have carefully perused the pleadings of Party and extant provisions of the Code and Rules made thereunder.
As detailed supra, the Resolution Professional and the COC of the Corporate Applicant, have made their best assessment of assets Vis-a- Vis liabilities of Corporate Applicant and thus found that there would be no possibility of getting any Resolution Plan and thus it has been rightly decided to go for liquidation directly. The Resolution to initiate liquidation was unanimously approved by the COC and the instant Application is filed strictly in accordance with law. The COC has also proposed Shri Shankar B Iyer with Registration No. IBBI/IPA-002/IP-N00615/2018-19/11850 as a Liquidator, for liquidating the Corporate Debtor, who has filed a written consent dated 08th October, 2020 to act as Liquidator of the Corporate Debtor i.e., M/s. Indiranagar Chit Fund and Trading Co P Ltd by inter-alia declaring that he is not serving as an IRP in any case; serving as Liquidator in case of CP (IB) No.92/BB/2018; that there are no disciplinary proceedings pending against him with the Board or ICSI IIP etc. Hence, he is provisionally eligible to be appointed as Liquidator. Therefore, it is a fit case to initiate Liquidation in respect of Corporate Debtor.
In view of the facts and circumstances of the case, the Adjudicating Authority, by exercising powers conferred on it , under Section 33(2) of the IBC, 2016, disposed of I.A No.427 of 2020 in C.P.(IB)No.322/BB/2019 with following directions:
It is hereby ordered that M/s. Indiranagar Chit Fund and Trading Company Private Limited, Corporate Applicant be liquidated in the manner as laid down in Chapter III of Part II of Code, R/w IBBI (Liquidation process) Regulations, 2016.
Shri Shankar B Iyer is hereby appointed as a Liquidator, subject to the terms and conditions to be agreed upon by the parties in the light of extant provisions of the IBBI. He is directed to follow due process of law as per above Chapter and Regulations and to issue public announcement immediately by stating that the Corporate Debtor is in liquidation.
The Liquidator is directed to strictly adhere to the extant provisions of the Code and the Rules made thereunder framed by the IBBI from time to time and also directed to take expeditious steps to complete the liquidation process in the light of various orders.
He is further directed to take steps for early dissolution of Corporate Debtor, in terms of Rule 14 of IBBI (Liquidation Process) Regulations;
The Registry is directed to communicate this order to the Registrar of Companies, Karnataka for information and necessary action and also to the Liquidator.
Post the case for report of Liquidator on 18th December, 2020.