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Judgment
ORDER
This is an application filed by Mr. Gaurang Chhotalal Shah, Resolution Professional of the Corporate Debtor seeking liquidation of Blue Arcade Properties Private Limited under Section 33 of Insolvency and Bankruptcy Code, 2016 (hereinafter called as the “Code”).
Brief facts of the Application are as follows:
This Tribunal vide an order dated 28.03.2024, in Company Petition bearing C.P.(IB)/277(MB)2021 filed under Section 7 of the Code, by SREI Equipment Finance Limited (hereinafter referred to as the “Financial Creditor”), admitted the Company Petition and Corporate Insolvency Resolution Process (“CIRP”) was initiated against Blue Arcade Properties Private Limited (hereinafter called as the “Corporate Debtor”) and appointed Mr. Gaurang Chhotalal Shah as Interim Resolution Professional and confirmed as a Resolution Professional on 2nd CoC meeting held on 23.05.2024.
Pursuant to the above said Order, the IRP issued a Public Announcement on 02.04.2024, in FORM-A, thereby calling upon the Creditors of the Corporate Debtor to file their claims, along with proof on or before 16.04.2024.
The Applicant submits that the Applicant issued Form-G Invitation for Expression of Interest dated 18.07.2024 (Under Regulation 36A(1) of the Insolvency and Bankruptcy Board of India, Regulation, 2016) in the matter of the Corporate Debtor.
The Applicant submits that he received four inquiries regarding the Expression of Interest (EOI) from various Prospective Resolution Applicants. As per Form G, the last date to submit the Resolution Plan was 13.09.2024. However, the Applicant received a request from one Prospective Resolution Applicant for an extension in the last date for submitting the Resolution Plan. Accordingly, after consulting with the Committee of Creditors, the last date for submission of Resolution Plan was extended upto 25.09.2024. However, the Applicant did not receive any Resolution Plan.
The Applicant stated that in its 6th CoC meeting dated 06.11.2024 passed a resolution with 100% majority for Liquidation and appointment of Liquidator. The relevant extract of the Resolution is reproduced below:
“RESOLVED THAT pursuant to Section 33(2) of Insolvency and Bankruptcy Code 2016 and amendments thereof including the Regulations made there under. the liquidation of the Corporate Debtor be and is hereby approved by the Committee of Creditors of M/s Blue Arcade Properties Private Limited.”
“RESOLVED THAT, the Committee of Creditors hereby approves the recommendation with respect to the appointment of Mr. Girish Hingorani as liquidator as per Regulation 39D of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and in accordance with any other provisions, rules and regulations made thereunder.”
Hence, the present Interlocutory Application has been filed for seeking Liquidation of the Corporate Debtor.
In that view of the matter, having considered the submissions and on perusal of averments made in the present Interlocutory Application; this Bench is satisfied and is of the considered opinion that the present Interlocutory Application is in consonance with Section 33(2) of the Code. Accordingly, this Authority has left with no option except to pass an order for Liquidation of the Corporate Debtor Company in the manner laid down in Chapter III of the Code considering the fact there is no Resolution Plan for consideration and CoC does not foresee any possibility of getting Plans for the Corporate Debtor. Hence ordered.
ORDER
The Present Application viz. IA/108/2024 in Company Petition no. 277(MB)/2021 stands allowed. The Corporate Debtor, Blue Arcade Properties Private Limited, shall be liquidated in the manner as laid down
We hereby appoints Mr. Girish Hingorani, having Registration No. IBBI/IPA-002/IP-N00842/2019-2020/12695; as the Liquidator to conduct liquidation process of “Blue Arcade Properties Private Limited” as provided under Section 34(4) of the Code.
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.
The Moratorium declared under Section 14 of the IBC 2016 shall cease to operate here from.
Liquidator shall issue public announcement stating that Corporate Debtor is in liquidation.
The Liquidator shall endeavor to sale the Company as a going concern during the liquidation in terms of Regulation 32A of the Liquidation Process Regulations. In case, he is not able to do so within a period of 90 days from this date, he shall proceed in accordance with clauses (a) to (d) of Regulation 32 of the Liquidation Process Regulations.
Subject to Section 52 of the Code 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 the Liquidation Process Regulations.
Personnel connected with the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as will be required for managing its affairs.
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.
The Liquidator shall submit Progress Reports as per Regulation 15 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, and shall apprise the Bench about the Liquidation Process of the Corporate Debtor.
The Liquidator is hereby Authorized to represent the Corporate Debtor before the Government Authorities, if need be.
Registry shall furnish a copy of this Order to:
Insolvency and Bankruptcy Board of India, New Delhi;
Regional Director (Western Region), Ministry of Corporate Affairs;
Registrar of Companies & Official Liquidator, Maharashtra;
Registered Office of the Corporate Debtor; and
Liquidator, Mr. Mahesh Goverdhan Bagla.
With the aforesaid observations and directions, the Interlocutory Application bearing IA No. 108 of 2024 IN C.P.(IB)/277(MB)2021, stands disposed of as Allowed. There would however be no order as to costs. Ordered Accordingly.