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Judgment
This is an Application filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (the Code) seeking orders for Liquidation of the Corporate Debtor i.e., M/s. Kolla Innovatives Infotech Private Limited and for appointment of Liquidator.
The brief facts of the Application are that:
This Tribunal admitted the Petition i.e. CP (B) No. 216/9/AMR/2019 by virtue of order dated 15.03.2021 under Section 9 of the Insolvency Bankruptcy Code, 2016 initiating Corporate Insolvency Resolution Process (CIRP) of M/s.Kolla Innovatives Infotech Private Limited and appointed Mr. Sai Ramesh Kanuparthi, (Applicant herein) as the Interim Resolution Professional (IRP) and take charge of the Corporate Debtor and necessary steps in furtherance of CIRP. He made a paper publication dated 28.07.2021 for inviting claims from the creditors of the Corporate Debtor as per the Insolvency and Bankruptcy Board of India (IBBI) Regulations, 2016.
The applicant filed his report along with list of creditors before the Tribunal, dated 16.08.2021. The list of creditors are as under:
| Sl. No. | Name of the Creditor | Amount claimed by the Creditors | Amount Admitted Rs. | Details of security Interest |
|---|---|---|---|---|
| 1 | Financial Creditors: Axis Bank | 3,04,99,526 | 3,04,99,526 | Composite Hypothecation on entire current assets and unencumbered movable fixed asset of the Corporate Debtor |
| 2 | Operational Creditor Ingram Micro India Pvt Ltd | 1,42,60,413 | 1,42,60,413 | NIL |
| 3 | Workmen/ Employees | NIL | NIL | NIL |
| 4 | Other Claimants | NIL | NIL | NIL |
First meeting of the CoC was held on 25.08.2021 and the Applicant/IRP was appointed as Resolution Professional. The 2nd CoC meeting, held on 08.09.2021 comprising of sole Financial Creditor informed the IRP to proceed for early liquidation of the Corporate Debtor and approved by the Sole CoC member with 100% voting share by e-voting held from 8 pm on 11.09.2021 to 5 pm on 13.09.2021, in respect of liquidation of the Corporate Debtor. Hence, the Applicant opened e-voting window on 11.09.2021 at 8 PM to 13.09.2021 at 5 PM (as per request of Axis Bank i.e., a Sole CoC Member) and voted in favour of Liquidation.
Hence the Applicant came up with this application and has suggested one name i.e., Mr. Satyanaryana Veera Venkata Chebrolu (IBBI/IPA-003/IPA-ICAI-N00224/2019-2020/1267) who has given his written consent and sought to appoint him as Liquidator.
From the above, it would appear that despite all possible steps as required under the Code, taken during the CIRP, the CoC did not receive any viable proposal for revival of the Company. The CoC in its wisdom has resolved with 100% voting share in favour of the Liquidation of the Corporate Debtor.
ORDER
Heard. In view of the facts stated in the Application, this Tribunal allowed the Application with the following directions.
Mr. Satyanaryana Veera Venkata Chebrolu (Registration No. IBBI/IPA-003/IPA-ICAI-N00224/2019-2020/1267) at Flat No.201, Chandana Residency, M I G -512 and 513, Near Temple Bus Stop, K P H B Colony, Kukatpally, Hyderabad, Telangana -500072; e-mail: [email protected] is appointed as the Liquidator for the Corporate Debtor. No disciplinary proceeding is pending against him as per the IBBI website.
He shall issue public announcement stating that Corporate Debtor is in Liquidation.
The Moratorium declared under Section 14 of the IBC, 2016, shall cease to operate here from.
Subject to section 52 of the IBC, 2016, no suit or other legal proceedings shall be instituted by or against the Corporate Debtor. This shall however not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
All powers of the Board of Directors, Key Managerial Personnel and partners of the Corporate Debtor shall cease to have effect and shall be vested in the Liquidator.
The liquidator shall exercise the powers and perform duties as envisaged under Sections 35 to 50 and 52 to 54 of the Code, read with Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016.
Personnel connected with the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as will be required for managing its affairs.
The Liquidator shall be entitled to such fees as may be specified by the Board in terms of Section 34 (8) of the Code.
This Order shall be deemed to be a notice of discharge to the officers, employees and workmen of the Corporate Debtor, except when the business of the Corporate Debtor is continued during the Liquidation process by the Liquidator.
Copy of the Order shall be furnished to the IBBI, to the Regional Director (South Eastern Region), Ministry of Corporate Affairs; Registrar of Companies & Official Liquidator, Andhra Pradesh, the Registered Office of the Corporate Debtor; and the Liquidator.
With the above directions IA (IBC).No.112/2021 in CP (IB) No.216/9/AMR/2019 is disposed of. Hence this Order.