TJSB Sahakari Bank Limited vs V-Accurate Management Services Private Limited

Per: Coram

This is an Application filed under Section 33(3) of the Insolvency and Bankruptcy Code, 2016 (Code) by TJSB Sahakari Bank Limited, the Financial Creditor (FC) seeking an order of liquidation against V-Accurate Management Service Pvt. Ltd., the Corporate Debtor (CD) pursuant to the resolution passed in the 1st meeting of Monitoring Committee held on 14.08.2024.

It is submitted that CP No. (IB)-(MB) 1359/2019 for initiating Corporate Insolvency Resolution Process (CIRP) against the CD was admitted by this Tribunal on 09.03.2021 and Mr. Ritesh R. Mahajan was appointed as Interim Resolution Professional (IRP).

The IRP published requisite Form A as per Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) on 11.03.2021.

It is further submitted that based on the claims received by the IRP, the Committee of Creditors (CoC) was constituted.

After the formation of the CoC, the appointment of the IRP as Resolution Professional (RP) of the CD was approved in the first meeting of the CoC held on 25.05.2021.

Thereafter, the RP prepared the Information Memorandum (IM) and it was circulated to all the CoC members on 08.06.2021.

In the 3rd CoC meeting held on 04.08.2021, the CoC approved the eligibility criteria for the Prospective Resolution Applicants (PRAs) and Expression of Interest (EoI) in Form G. The last date of submission of EoI was 21.08.2021. Pursuant to the same, the RP received one response to the Form G. Thereafter, the RP provided the eligibility criteria and detailed EoI to the PRAs with a request to submit the relevant documents.

The provisional list of eligible PRAs was circulated to the CoC and the PRA on 26.08.2021.

In the 4th CoC meeting held on 31.08.2021, the draft of Request for Resolution Plan (RFRP) along with the evaluation matrix was discussed and the same was amended and approved by the CoC through e-voting. The approved RFRP and evaluation matrix were then sent to the PRA by email dated 31.08.2021.

No objection to the provisional list of PRAs was received from the CoC members and accordingly, the final list of PRAs was circulated on 05.09.2021 to the CoC members.

Thereafter, the RP received the Resolution Plan from one of the PRAs, Mr. Ranjit Jagtap in a sealed envelope on 16.10.2021 along with the Demand Draft of Rs.3,00,000/- (Three Lakhs Rupees) as a Bid Bond Amount. Further, the said Resolution Plan was examined by the RP as per the provisions of Section 30(2) of the Code, and the Plan was kept for discussion before the CoC in its 6th CoC meeting on 15.11.2021 and the CoC requested the Resolution Applicant to further amend the Resolution Plan.

In the 10th CoC meeting held on 23.02.2022, the RP placed the revised Resolution Plan before the CoC members and detailed deliberations took place between CoC members and the Resolution Applicant on the revised Resolution Plan. Accordingly, the e-voting was opened on 03.03.2022 for voting on the Resolution Plan and voting was kept open till 04.03.2022 ended at 02:30 pm pursuant to which Mr. Ranjit Jagtap emerged as the Successful Resolution Applicant (SRA).

The CoC member after concluding that the Resolution Plan is feasible and viable, approved the Resolution Plan with 100% voting.

Thereafter, an IA for approval of the Resolution Plan was filed by the RP before this Tribunal, which has been approved vide order dated 02.01.2024.

The RP by e-mail dated 01.02.2024, informed the SRA that his Resolution Plan has been approved by this Tribunal and requested him to take necessary steps for the implementation of the Resolution Plan.

Thereafter, the SRA informed the RP by e-mail dated 10.03.2024 that an amount of Rs.5,00,000/- (Five Lakh Rupees) was deposited in the CIRP bank account of the CD towards performance security.

Thereafter, the RP by emails dated 17.04.2024 and 04.06.2024, h requested the SRA to expedite the implementation of the approved Resolution Plan as directed by this Tribunal. Again, vide email on 17.06.2024, the RP requested the SRA to expedite implementation of the approved Resolution Plan and further stated that in case of non-adherence to the same would compel him to call a meeting of the Monitoring Committee and file application under section 33 of the Code, for the CD’s liquidation for failure of implementation of the Plan.

The SRA was required to pay the CIRP cost and the first tranche of payment by 30.06.2024 but he failed to transfer the same and requested to grant an extension till 05.08.2024, which was granted. However, the SRA again failed to deposit the first tranche of payment and the CIRP cost.

The SRA again requested the sole FC for an extension until 16.08.2024, but the request was rejected, as sufficient time had already been granted for the first installment.

Thereafter, the 1st meeting of the Monitoring Committee was held on 14.08.2024, wherein the following discussions took place between the sole FC, SRA, and RP:

- The SRA requested the sole FC /Applicant to grant further extension of 8 days from the date of the meeting. Thereafter, the FC directed the RP to file liquidation application with this Tribunal owing to contravention/non-implementation of the Resolution Plan by the SRA.

- The RP placed his unwillingness with the FC to act as liquidator of the CD and stated that application for liquidation shall be filed and if the payment is made by the SRA, then, the same would be brought to the notice of this Tribunal by him, as and when the liquidation application is listed.

Thereafter, the FC sent the ballot paper on 26.08.2024 wherein the following resolutions approving the filing of IA for liquidation of the CD was approved by the FC:

The Applicant submitted that Mr. Pankaj Sham Joshi, Insolvency Professional has provided his written consent in Form AA to be appointed as a liquidator. A copy of the written consent has been attached with the Application.

Having considered the Application and upon hearing the Ld. Counsel for the Applicant, we are of the considered opinion that this is a fit case for liquidation. Therefore, we hereby order the following:

a. The CD, viz., V-Accurate Management Services Pvt. Ltd. is liquidated in terms of Section 33(3) of the Code;

b. The Mr. Pankaj Sham Joshi, holding Registration No. IBBI/IPA-002/IP-NO0507/2017-2018/11556, is appointed as the Liquidator of the CD in terms of Section 34 of the Code;

c. The RP is directed to create a fixed deposit in the CIRP Bank Account of the CD, out of the proceeds arising from the forfeiture of EMD of Rs.5,00,000/- (Five Lakh Rupees) deposited by the SRA, within ten days from the date of this Order published on the website of NCLT;

d. Registry is directed to communicate this Order to the Registrar of Companies, Mumbai, and to the Insolvency and Bankruptcy Board of India;

e. The Order of Moratorium passed under Section 14 of the Code shall cease to have its effect and a fresh Moratorium under Section 33(5) of the Code shall commence;

f. This Order shall be deemed to be a notice of discharge to the officers, employees and workmen of the CD in terms of Section 33(7) of the Code;

g. The Liquidator is directed to proceed with the process of liquidation in the manner laid down in Chapter III of Part II of the Code, and in accordance with the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (Liquidation Process Regulations).

h. The Liquidator shall follow upon and continue to investigate the financial affairs of the CD in accordance with provisions of Section 35(1) of the Code.

j. The Liquidator shall submit a Preliminary Report to this Adjudicating Authority within seventy-five days from the liquidation commencement date as per Regulation 13 of the Liquidation Process Regulations;

k. Copy of this Order be sent to the FC, the CD and the Liquidator for taking necessary steps.

In the result, IA 95/2024 filed by the FC for Liquidation of the CD stands allowed and disposed of.