Tribunal approves liquidation of Corporate Debtor, appoints Liquidator for efficient process

The Tribunal approved the liquidation of the Corporate Debtor based on the Resolution Professional's recommendation and the Committee of Creditors' decision. Mrs. Aruna Ramachandran was appointed as the Liquidator, and the moratorium was lifted. The Liquidator was tasked with managing the affairs of the Corporate Debtor and submitting progress reports periodically. The Tribunal ordered full cooperation from the Corporate Debtor's personnel for a smooth liquidation process, in compliance with the Insolvency and Bankruptcy Code, 2016.

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Issues: Liquidation of Corporate Debtor

Issue 1: Appointment of Resolution Professional
The Tribunal received a Miscellaneous Application from the Resolution Professional (RP) for a company under Corporate Insolvency Resolution Process (CIRP). The RP was appointed based on recommendations from the Insolvency and Bankruptcy Board of India (IBBI) and subsequent approval by the Tribunal. The RP sought an extension of the moratorium period and constituted the Committee of Creditors (CoC) in compliance with the Insolvency and Bankruptcy Code, 2016.

Issue 2: Valuation of Assets and Resolution Process
The RP appointed government-approved valuers to assess the value of unsold assets of the Corporate Debtor, including apartments in a specific project. Despite advertising for expression of interest and resolution plans, no viable proposals were received. The CoC unanimously agreed that liquidation was the only viable option due to the lack of infrastructure and resources necessary for revival.

Issue 3: Recommendation for Liquidation
Considering the circumstances and the CoC's decision, the RP recommended the liquidation of the Corporate Debtor. The Tribunal, exercising powers under Section 33 of the I&B Code, 2016, ordered the liquidation process to commence. Mrs. Aruna Ramachandran was appointed as the Liquidator, and the moratorium was lifted. The order specified the cessation of powers of the Board of Directors and other key personnel, transferring them to the Liquidator.

Issue 4: Liquidation Process and Reporting
The Liquidator was tasked with managing the affairs of the Corporate Debtor, charging fees proportionate to the liquidation estate assets. The Liquidator was required to submit progress reports periodically as per the regulations. The Tribunal directed full cooperation from the Corporate Debtor's personnel to the Liquidator for a smooth liquidation process.

In conclusion, the Tribunal approved the liquidation of the Corporate Debtor based on the RP's recommendation and the CoC's decision, appointing a Liquidator to oversee the process in accordance with the I&B Code, 2016.

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