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Judgment
ORDER
Per Rajasekhar V.K., Member (Judicial)
This court convened via video conferencing.
This is an application filed by the Resolution Professional upon the instructions of the Committee of Creditors (‘CoC’) seeking liquidation of the Corporate Debtor, viz., Nekka Oil and Fats Private Limited [CIN:U51909WB2017PTC219656], on the ground that there is no scope for revival of the business of the Corporate Debtor and no viable Resolution Plan could be evolved in terms f section 30 of the Insolvency and Bankruptcy Code, 2016.
This Adjudicating Authority vide its order dated 19.02.2020 on a Petition filed by Dayanand Agarwal carrying on business in the name and style of Shradha Trading Co. (‘operational creditor’) under section 9 of the Insolvency and Bankruptcy Code, 2016 (‘the Code’) directed initiation of the Corporate Insolvency Resolution Process (‘CIRP’) against the Corporate Debtor and appointed Mr. Neeraj Kejriwal (Reg. No.IBBI/IPA-001/IP-P00392/2017-18/10710) as the Interim Resolution Professional (‘IRP’).
The Applicant submits that in terms of section 15 of the Code, public announcement was made on 22.02.2020, in Financial Express (English) and Aajkal (Bengali) (Kolkata Edition), fixing 03.03.2020 as the last date for submitting the claim. The public announcement was uploaded on the website of IBBI.
The Committee of Creditors was duly constituted with one financial creditor and the Report certifying the constitution of the CoC was filed with the Adjudicating Authority on 12.03.2020.
The first meeting of the CoC was held on 19.03.2020 wherein the CoC confirmed the appointment of the IRP as the RP. The CoC in the eight CoC meeting held on 05.06.2020, passed a resolution to liquidate the Corporate Debtor in the absence of any scope for revival of the business of the Corporate Debtor as the Corporate Debtor is not a going concern and the assets of the Corporate Debtor are negligible.
Hence, the RP has filed an application under section 33 of the Code, before the Adjudicating Authority for liquidation of the Corporate Debtor no Expression of Interest (EoI) had been received by the Resolution Professional. The CoC has passed resolution by 100% voting shares 1 that the Corporate Debtor be liquidated under the provisions of section 33(2) of the Code.
The Applicant/Resolution Professional, Mr. Neeraj Kejriwal (Reg. No. IBBI/IPA-001/IP-P00392/2017-18/10710), has agreed to act as liquidator to carry on the process of liquidation and given his consent to act as Liquidator, in terms of section 34(1) of the Code2 and has also filed a valid Authorisation for Assignment (AFA) issued by the Insolvency Professional Agency (IPA) of which he is a professional member, which is valid till 09.12.20213.
We have considered the submission made by the learned Counsel on behalf of the Applicant/RP and perused the record.
Section 33(2) of the Code enjoins the Adjudicating Authority to pass an order for liquidation of the Corporate Debtor where the resolution professional, at any time during the CIRP but before confirmation of the resolution plan, intimates the Adjudicating Authority of the decision of the CoC approved by not less than sixty-six percent of the voting share, to liquidate the Corporate Debtor. In the present case, the CoC has resolved by 100% voting share to liquidate the Corporate Debtor.
This Bench, therefore, hereby orders as follows: -
a. Prayers as sought for in I.A. (IB) No. 595/KB/2021 filed by Mr. Neeraj Kejriwal, RP of Nekka Oil & Fats Private Limited, the Corporate Debtor, is allowed and the Corporate Debtor is ordered to be liquidated in terms of section 33(2) of the Code read with sub-section (1) thereof;
b. Mr. Neeraj Kejriwal (Regn. No. IBBI/IPA-001/IP-P00392/2017-18/10710), is hereby appointed as Liquidator as provided under section 34(1) of the Code.
c. The Liquidator shall initiate liquidation process as envisaged under Chapter-III of the Code and the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
d. Public Notice shall be issued in the same newspapers in which advertisements were issued earlier, i.e., Financial Express (English) and Aajkal (Bengali) (Kolkata edition), stating that the Corporate Debtor is in liquidation.
e. All the powers of the Board of Directors, and of key managerial persons, shall cease to exist in accordance with section 34(2) of the Code. All these powers shall henceforth vest in the Liquidator.
f. The personnel of the Corporate Debtor are directed to extend all assistance and co-operation to the Liquidator as required by him in managing the liquidation process of the Corporate Debtor.
g. On initiation of the liquidation process but 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, as provided in section 33(5) of the Code read with its proviso.
h. In accordance with section 33(7) of the Code, 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.
In terms of section 33(1)(b)(iii), the Liquidator shall file a copy of this Order with the Registrar of Companies, West Bengal, Kolkata, within whose jurisdiction the Corporate Debtor is registered. Additionally, the Registry shall also forward a copy of this Order to the Registrar of Companies, West Bengal, Kolkata.
The application bearing IA (IB) No. 595/KB/2021 shall stand disposed of in accordance with the above directions.
The Registry is directed to send e-mail copies of the order forthwith to all the parties and their Ld. Counsel for information and for taking necessary steps.
Certified copy of this order may be issued, if applied for, upon compliance of all requisite formalities.
List the main CP (IB) No. 1116/KB/2019 for reporting progress on 14.02.2022.