2017 (9) TMI 1798 - Tri - Insolvency and Bankruptcy

Insolvency case: Court appoints Interim Resolution Professional, outlines duties

State Bank of India Versus MOR Farms Pvt. Ltd.

The court admitted a petition by a Financial-Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016, appointing an Interim Resolution ... Initiating the insolvency resolution process - formal order of appointment of Interim Resolution Professional. Mr.AniI Kohli. who has furnished communication in Form No. 2, which was found to be in order - Interim Insolvency Resolution Professional shall positively file a report of events before this Tribunal every seven days in relation to the Corporate Debtor'. Issues:1. Appointment of Interim Resolution Professional under Section 7 of the Insolvency and Bankruptcy Code, 2016.2. Directions issued to the Interim Resolution Professional for managing the affairs of the Corporate Debtor.3. Constitution of Committee of Creditors and public announcement requirements.4. Appointment of registered valuers to determine the liquidation value of the Corporate Debtor.5. Reporting obligations of the Interim Insolvency Resolution Professional to the Tribunal.Analysis:1. The judgment pertains to a petition filed by the Financial-Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the insolvency resolution process. The petition was admitted, and an Interim Resolution Professional, Mr. Anil Kohli, was appointed for a period of 30 days or as determined by the committee of creditors, with the suspension of powers of the Board of Directors in favor of the Interim Resolution Professional.2. The Interim Resolution Professional was directed to take control and custody of the assets of the Corporate Debtor, prepare an inventory list of assets, act in accordance with the Code and related rules, and constitute the Committee of Creditors within three weeks. Cooperation from the Corporate Debtor and associated personnel was mandated, along with the public announcement of the initiation of the Corporate Insolvency Resolution process and the appointment of registered valuers for determining the liquidation value.3. The Interim Resolution Professional was further instructed to file a report of events before the Tribunal every seven days, emphasizing the reporting obligations. The order and related communications were to be shared with all concerned parties, with copies sent to the Interim Resolution Professional for compliance and further actions.This judgment outlines the procedural and managerial steps to be undertaken by the Interim Resolution Professional in overseeing the affairs of the Corporate Debtor, ensuring compliance with the Code, and facilitating the insolvency resolution process efficiently and transparently.