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Judgment
Per Shri H. V. Subba Rao, Member (Judicial)
This is an application filed by the Resolution professional seeking liquidation of the Corporate Debtor namely (M/s. Punjab Biomass Power 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:
1.a. To pass an order in respect of the Corporate Debtor under clause (a) of section 33(1) of the Code;
2.b. To appoint the Applicant Liquidator of the Corporate Debtor under Section 34(4) of the Code;
c. To maintain the matter to seek listing for the present application for urgent reliefs;
d. To provide costs: and
e. For any other that this Hon'ble Tribunal deems fit in the interest of equity, justice and good conscience."
The Adjudicating Authority vide its order dated 14.10.2019 on a Petition filed by the Financial Creditor under Section 7 of the Code directed initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor namely M/s. Punjab Biomass Power Ltd., wherein Mr. Om Prakash Kanoongo, was appointed as Interim Resolution Professional (IRP). Thereafter, in the 1st Committee of Creditors (CoC) meeting held on 15.11.2019, CoC decided to appoint Applicant Mr. Om Prakash Kanoongo as Resolution Professional.
It is submitted that the public announcement of the initiation of the CIRP was issued in Form A on 21.10.2019 in "Free Press Journal" and "Navshakti". The last date for submission of claims by creditors is 02.11.2019.
It is further submitted that an advertisement, inviting Expression of Interest (EoI) in Form G was published on 09.11.2019 in "Jagwani" local newspaper of Patiala in vernacular language.
The CoC in its 1st meeting held on 15.11.2019 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.
The RP was not able to prepare Information Memorandum and thereby couldn't carry out the publication of advertisement inviting Expression of interest. Further the RP states that the CoC unanimously decided not to extend the CIRP Period.
The RP submits that the fair value of all assets of the Corporate Debtor arrived from the Valuation Report is Rs. 5,46,31,218/- and the average Liquidation value is Rs. 4,00,52,542/-.
The CoC in the 4th CoC meeting held on 27.05.2020 was informed in the meeting that there are no chances of revival of the Corporate debtor Company as corporate debtor is not a going concern and only few assets in the form of land. Therefore, the CoC in its wisdom passed the following Resolution;
"TO RESOLVED THAT the Corporate Debtor be liquidated by the Adjudicating Authority in accordance with Section 33(1) of the Insolvency and Bankruptcy Code, 2016"
Hence, the CoC in its 4th meeting held on 27.05.2020, unanimously 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).
The Applicant/ Resolution Professional Mr. Om Prakash Kanoongo, has agreed to act as liquidator and given consent to carry on the process of liquidation.
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 genuine and convincing as the Corporate Debtor is not a going concern. 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. Accordingly, we pass the following:
ORDER
a. The I. A. No. 1843 of 2020 is hereby allowed.
b. Mr. Om Prakakash Kanoongo, Registration No. IBBI/IPA-001/IP-P00410/2017-2018/10726, 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. - i. 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 I. A. No.1843 of 2020 is hereby allowed and disposed of.