AI Structured Summary
Not yet generated for this judgment
Judgment
Per Shri H. V. Subba Rao, Member (Judicial)
This is an application filed by the Resolution professional seeking liquidation of the Corporate Debtor namely (M/s. Kosak Engineering and Rubber Products Pvt. Ltd.) on the ground that no resolution plan has been received by him, hence this application under Section 33 (1) of the Insolvency and Bankruptcy Code, 2016, praying following reliefs:
a. To pass an order to liquidate the Corporate Debtor in accordance with Chapter III of the Insolvency and Bankruptcy Coe, 2016;
b. To appoint the Applicant Liquidator of the Corporate Debtor to conduct the liquidation process of the Corporate Debtor in accordance with chapter III of the Insolvency and Bankruptcy Coe, 2016;
c. For such any other reliefs as in the circumstances this Hon'ble Tribunal deems fit and proper."
The Adjudicating Authority vide its order dated 25.09.2019 on a Petition filed by the Financial Creditor under Section 7 of the Code directed initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor namely M/s. Kosak Engineering and Rubber Products Pvt. Ltd., wherein Mr. Pankaj Sham Joshi, was appointed as Interim Resolution Professional (IRP). Thereafter, in the 1st Committee of Creditors (CoC) meeting held on 25.01.2019, CoC decided to appoint Applicant Mr. Pankaj Sham Joshi as Resolution Professional.
It is submitted that the public announcement of the initiation of the CIRP was issued in Form A on 02.10.2019 in "Free Press Journal" (English edition) and "Navrashtra" (Marathi edition). The last date for submission of claims by creditors is 15.10.2019.
It is further submitted that an advertisement, inviting Expression of Interest (EoI) in Form G was published on 14.12.2019 in "Free Press Journal" (English edition) and "Navakal" (Marathi edition) having wide circulation in Mumbai and also in "Financial Express" (English edition) and "Pudhari" (Marathi edition) having wide circulation in Sholapur. The last date for submission of resolution plan by prospective resolution applicant is 13.02.2020.
The CoC in its meeting decided to appoint a Valuer. The RP accordingly appointed three registered valuers as required under Regulation 27 of the IBBI (IRP for Corporate Persons) Regulations, 2016 and the Information Memorandum was prepared as provided under Regulation 36(1) of the said regulation. On the perusal of the valuation report filed by the valuers reveals that the average fair value and liquidation value of the land & Building and plant & Machinery of corporate debtor are as follow:
| Sr. No. | Particular | Fair Value for Land & Building and Plant & Machinery (In INR) | Liquidation Value for land & Building and plant and Machinery (in INR) |
|---|---|---|---|
| 1 | Average of Land Building | 2,75,05,000 | 1,99,03,500 |
| 2 | Average of Plant Machinery | 54,73,500 | 34,27,000 |
| Average | 3,29,78,500 | 2,33,30,500 |
The CoC in the 2nd CoC meeting held on 14.01.2020 was informed in the meeting that there are no chances of revival of the Corporate debtor Company as corporate debtor is not a going concern. Therefore, the CoC in its wisdom passed the following Resolution;
"RESOLVED THAT the process for liquidation under section 33(1)(a) be initiated against the Corporate Debtor."
Hence, the CoC in its 2nd meeting held on 14.01.2020, unanimously with 100% passed a resolution for liquidating the company. Accordingly, the Resolution Professional filed this application for liquidation of the Company as provided u/s. 33 of the Insolvency & Bankruptcy Code, 2016 (Code).
The Applicant/ Resolution Professional Mr. Pankaj Sham Joshi, has agreed to act as liquidator and given consent to carry on the process of liquidation.
Upon hearing the submissions of the Applicant and on the perusal of the Application and the documents enclosed therein it is found, the RP has complied with the procedure laid down under the Code; Regulations made thereunder. The reasons assigned in the petition with regards to taking the decision of liquidation of Corporate Debtor by CoC appears to be genuine and convincing as the Corporate Debtor is not a going concern. On verification, we are of the considered view that this is a fit case to pass liquidation order under sub-section 1 of section 33 of the Code for liquidation in the absence of any resolution plan. Accordingly, we pass the following:
ORDER
a. The I. A. No. 366 of 2021 is hereby allowed.
b. Mr. Pankaj Sham Joshi, Registration No. IBBI/IPA-002/IP-N00507/2017-2018/11556, herein is hereby appointed as Liquidator as provided under Section 34(1) of the Code.
c. That the Liquidator for conduct of the liquidation proceedings would be entitled to the fees as provided in Regulation 4(2)(b) of the IBBI (Liquidation Process Regulations), 2016.
d. The Liquidator appointed in this case to initiate liquidation process as envisaged under Chapter-III of the Code by following the liquidation process given in the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
e. The Liquidator appointed under section 34(1) of the Code. Will have all powers of the board of directors, key managerial personnel and the partners of the Corporate Debtor, as the case may be, shall cease to have effect and shall be vested with the liquidator.
f. That the Corporate Debtor to be liquidated in the manner as laid down in the Chapter by issuing Public Notice stating that the Corporate Debtor is in liquidation with a direction to the Liquidator to send this order to the ROC under which this Company has been registered.
g. All the powers of the Board of Directors, key managerial persons, the partners of the Corporate Debtor hereafter ceased to exist. All these powers henceforth vest with the Liquidator.
h. That the personnel of the Corporate Debtor are directed to extend all co-operation to the Liquidator as required by him in managing the liquidation process of the Corporate Debtor.
That on having liquidation process initiated, subject to section 52 of the Code, no suit or other legal proceeding shall be instituted by or against the Corporate Debtor save and except the liberty to the liquidator to institute suit or other legal proceeding on behalf of the corporate debtor with prior approval of this Adjudicating Authority.
j. This liquidation order shall be deemed to be a notice of discharge to the officers, employees and workmen of the Corporate Debtor except to the extent of the business of the Corporate Debtor continued during the liquidation process by the Liquidator.
k. The I. A. No.366 of 2021 is hereby allowed and disposed of.