Sri Aranath Logistics Limited

This is an application filed by the Resolution Professional seeking liquidation of the Corporate Debtor and appointment of liquidator to oversee the process.

The Corporate Debtor was admitted into CIRP vide order dated 08/11/2019 in C.P. (IB)/676(KB)2018 appointing Mr. Soumitra Lahiri as RP. Form G Inviting for Expression of Interest was published in the newspapers, “The Financial Express” (English) and “Ekdin”(Bengali) on 28.10.2020, in response thereto prospective applicants has filed Expression of Interest. The Information Memorandum Evaluation Matrix and RFRP documents were circulated on 27.11.2020. Considering these aspects, the CIRP was also extended vide an order dated 18.03.2021 until 16/04/2021.However, on 13.04.2021 at the 9^th meeting of the CoC it was resolved to recommend liquidation of the Corporate Debtor. In these circumstances the present petition RP has given his consent to act as liquidator which placed at page 127 of the present application. He is stated to have a valid authorization for assignment.

In view of the above it is hereby ordered as follows:

IA No. (I.B.C)/607(KB)2021- the RP of 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;

Mr. Soumitra Lahiri as RP is hereby appointed as liquidator as provided under section 34(1) of the Code, subject, however, to his possessing a valid Authorisation for Assignment (AFA) issued by the Insolvency Professional Agency (IPA) of which he is a professional member, in terms of regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2019.

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.

Public Notice shall be issued in the same newspapers in which advertisements were issued earlier, stating that the Corporate Debtor is in liquidation.

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.

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.

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.

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 No. 607/2021 shall stand disposed of with the above directions.

IA (I.B.C)/1056 (KB)2020 is an application filed by Centrum Financial Services Limited against the decision of the RP not to collate the claim filed by the applicant. IA(I.B.C)/1178(KB)2020 is an application filed by CFM Asset Reconstruction Private Limited ( which at present is the sole constituent of the CoC) seeking to intervene in the application bearing IA No. 1056/2020 filed by Centrum Financial Services Limited. Both these applications have become infructuous today in the light of the order in IA (I.B.C)/607(KB)2021.

The applicant in IA(I.B.C)/1056(KB)2020 is hereby directed to file its claim with the liquidator appointed in the matter, who has to adjudicate the same on its own merit, irrespective of whether such claims have been filed before the RP or not . The other financial creditor is also directed to file its claim with the liquidator, who shall again proceed to adjudicate the claim on its own merit. With these directions IA (I.B.C)/1056 (KB)2020 and IA(I.B.C)/1178(KB)2020 shall stand disposed of .