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Judgment
Per Shri H. V. Subba Rao, Member (Judicial)
ORDER
It is an application filed by the Resolution Professional, seeking liquidation of the Corporate Debtor namely (M/s. Phoenix Aluminium 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 under Section 33(1) of the Code for liquidation of the Corporate Debtor namely Phoenix Aluminium Products Pvt. Ltd.;
b. To appoint Mr. Suil Nanal as Liquidator at the remuneration proposed in the Application.
The Adjudicating Authority vide its order dated 13.11.2019 on a Petition filed by the Operational Creditor under Section 9 of the Code directed initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor namely M/s. Phoenix Aluminium Products Pvt. Ltd., wherein Mr. Praksh Naringrekar, was appointed as Interim Resolution Professional (IRP). Thereafter, Committee of Creditors (CoC) decided to appoint Mr. Harshad Deshpande, as Resolution Professional (RP) and the same was approved by this Bench vide an Order dated 28.01.2020.
It is further submitted by the Counsel for the Applicant that an advertisement, inviting Expression of Interest (EoI) in Form G was published on 11.02.2020, 24.06.2020 and 11.04.2020, 23.08.2020 being the last date for submission of Resolution Plan the same was uploaded on the IBBI site. Thereafter, no EoI was invited and no Resolution plan was received. It is submitted that the CIRP period was not extended further.
The CoC in its meeting decided to appoint a Valuer. The RP accordingly appointed two 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.
The CoC in its CoC meeting held on 21.09.2020, it was informed in the meeting that there are no chance of revival of the Corporate debtor Company. The following Resolution was passed;
“Resolved that subject to approval of the Hon’ble National Company Law Tribunal, Mumbai Bench, Mumbai the approval of Committee of creditors be and is hereby accorded for liquidation of the Corporate Debtor namely Phoenix Aluminium Products Pvt. Ltd.”
Resolved that Mr. Sunil Nanal, Insolvency Professional (IBBI Reg. No. IBBI/IPA-002/IP-N00194/17-18/10560) having his office at C/o. Kanj & Co. LLP, 3-4, Aishwary Sankul, S No. 17, Kothorud, Pune 411 038 be and is hereby appointed as the Liquidator for winding up the affairs of the Corporate Debtor.”
Hence, the CoC in its meeting held on 21.09.2020, unanimously with 100% voting rights 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).
Mr. Sunil Nanal, has agreed to act as liquidator to carry on the process of liquidation and given his consent to act as Liquidator.
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 convincing. 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. Hence ordered;
ORDER
a. The Miscellaneous Application No. 2439 of 2020 is hereby allowed.
b. Mr. Sunil Nanal, Insolvency Professional (IBBI Reg. No. IBBI/IPA-002/IP-N00194/17-18/10560), 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 Miscellaneous Application No. 2439 of 2020 is hereby allowed and disposed of.