Union Bank Of India

The Present application has been filed under Section 33 of the Insolvency & Bankruptcy code, 2016 (herein after termed as “the Code”) by Union Bank of India, is a Financial Creditor and the sole member of the Committee of Creditor with respect to Regency Linx Exports Private Limited, i.e. the Corporate Debtor (hereinafter referred as “CD”) seeking following reliefs hereby:

The Corporate Insolvency Resolution Process ("hereinafter referred as CIRP") of the Corporate Debtor was initiated vide order dated 25.01.2020, pursuant to an application filed by an Operational Creditor under Section 9 of the IBC, 2016.

It is also submitted that upon admission of the CIRP, Mr. Kedarram R Laddha was appointed as the Interim Resolution Professional and subsequently took charge of the Corporate Debtor as the Resolution Professional.

It is submitted that public announcements were made on 01.02.2020 and invitations for submission of claims were issued, pursuant to which the Applicant lodged its claim on 29.02.2020 for an amount of Rs.13,69,00,630/- and was invited as a CoC member of the Corporate Debtor.

It is submitted that during the course of the CIRP, the promoters and management of the Corporate Debtor failed to cooperate with the Resolution Professional and the CoC despite repeated emails and reminders, thereby hampering the resolution process.

It is further submitted that the last audited financial statements available on the records of the Registrar of Companies pertain to the financial year 2014–2015, and although several assets were disclosed in earlier records, no assets were found to be existing or available at the time of CIRP.

It is submitted that the Resolution Professional and the CoC made several attempts to identify, trace, and verify the assets of the Corporate Debtor. However, such efforts revealed that the Corporate Debtor was asset-less, and no realizable assets were available.

It is submitted that considering the high CIRP costs and the absence of assets, the Applicant, exercising commercial prudence, decided that there was no justification to file further applications before this Hon’ble Tribunal for recovery or avoidance of transactions, as the same would not yield any meaningful value.

It is further submitted that no Resolution Applicants were invited, as the Corporate Debtor had no viable business operations, no assets, and no financial statements, making the resolution process commercially unfeasible.

It is submitted that in the 15th meeting of the CoC held on 24.03.2022, the Applicant, being the sole CoC member, resolved not to proceed further with the resolution process and decided to seek internal approvals for liquidation of the Corporate Debtor.

It is submitted that during the pendency of the CIRP, the then Resolution Professional, Mr. Kedarram Ramratan Laddha, was suspended by the Insolvency and Bankruptcy Board of India, Insolvency and Bankruptcy Board of India, and consequently ceased to have authority to continue as Resolution Professional in the present matter.

It is further submitted that thereafter, in the 17th meeting of the CoC held on 06.07.2022, the Applicant resolved to proceed with liquidation of the Corporate Debtor and adjourned the matter for proposing the name of a new Liquidator in view of the suspension of the existing Resolution Professional.

It is submitted that on 16.01.2023, Bondalapati Srinivasarao, Insolvency Professional, approached the Applicant and expressed his willingness to act as the Liquidator of the Corporate Debtor. The Applicant, after obtaining necessary internal approvals from the competent authority, approved his appointment as Liquidator.

It is also submitted that there was a delay in filing the present application due to the time consumed in obtaining internal approvals for change of Liquidator, especially in light of the suspension of the earlier Resolution Professional.

It is reiterated that the CIRP period has expired, there are no assets available with the Corporate Debtor, no resolution plan has been received, and continuation of CIRP would serve no purpose, the present application is filed seeking initiation of liquidation proceedings under Section 33 of the Insolvency and Bankruptcy Code, 2016 and for appointment of the Applicant as Liquidator.

Heard the Ld. Counsel appeared on behalf of the applicant and perused the records.

From the Compliance certificate (Form H) attached with the application the dates and events subsequent to initiation of CIRP of the CD is as follows,

It is seen that the Applicant submitted FORM-H dated 25.10.2025 as per Regulation 39 (4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations 2016. The same is placed at Page 90-97 of the application. As observed from Form-H, there is no PUFE applications pending in respect of the CD.

It is seen from the records that despite the CIRP having continued for a considerable period, no Resolution Plan has been received, nor was any Resolution Applicant invited, owing to the absence of assets, business operations, and updated financial statements of the Corporate Debtor.

The material placed on record clearly establishes that the promoters and erstwhile management of the Corporate Debtor failed to cooperate with the Resolution Professional during the CIRP, thereby frustrating the very objective of the resolution process.

It is further evident that the last audited financial statements available are for the year 2014–2015, and repeated efforts made by the Resolution Professional as well as the CoC to trace and verify assets of the Corporate Debtor proved futile. The Corporate Debtor is admittedly asset-less.

We note that the Applicant, exercising its commercial wisdom, consciously decided not to pursue avoidance or recovery proceedings, considering the high CIRP costs involved and the absence of any realizable value. Such a decision squarely falls within the domain of the CoC and does not warrant judicial interference.

It is also an admitted position that the CIRP period has expired, and continuation of CIRP would only lead to further depletion of value, without serving any useful purpose under the Insolvency and Bankruptcy Code, 2016.

We further take note of the fact that the earlier Resolution Professional was suspended by the Insolvency and Bankruptcy Board of India, and therefore could not continue to discharge his functions under the Code.

It is noted that Bondalapati srinivasarao has been proposed as the Liquidator in this application.

Therefore, we appoint Bondalapati srinivasarao, having Reg. No. IBBI/IPA-001/IP-P-01643/2019-2020/12743, email id: bsrfca@gmail.com , having valid AFA upto 30-06-2026 as the Liquidator under Section 34(1) of the Code for the Corporate Debtor.

From the above facts and circumstances, considering the decision taken by the CoC of the Corporate Debtor, this Adjudicating Authority deems it fit to order Liquidation of the Corporate Debtor. Accordingly, we order Liquidation of the Corporate Debtor i.e. Regency Linx Exports Private Limited by appointing the above Bondalapati srinivasarao as the Liquidator to carry out the liquidation process subject to the following terms/directions: -

Accordingly, with the above directions, IA(IBC)(LIQ)/26(CHE)/2025 in IBA/1182(CHE)/2019 stands allowed and disposed of.