Tribunal orders liquidation of Corporate Debtor after rejecting exemption application and approving condonation of delay.

The Tribunal rejected the application to exempt the CIR Process period and reconstitute the CoC, affirming the Resolution Professional's actions. The Tribunal allowed the condonation of a 9-day delay in filing an application and accepted it. With no Resolution Plan received within the stipulated period, the Tribunal ordered the liquidation of the Corporate Debtor, appointing the Resolution Professional as the Company Liquidator. Various directives were issued for the liquidation process, emphasizing immediate compliance.

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Issues Involved:
1. Application to exempt CIR Process period and reconstitute CoC.
2. Application to condone delay in filing.
3. Application for liquidation of the Corporate Debtor.

Issue I: Application to exempt CIR Process period and reconstitute CoC

The erstwhile Directors filed an application (MA/443/2019) under Section 60(5) of the I&B Code, 2016, seeking to exempt the entire CIR Process period for the Corporate Debtor and to reconstitute the Committee of Creditors (CoC). The Resolution Professional opposed the application, arguing that exempting the CIR Process would not benefit the depositors and could demoralize them. The Resolution Professional had already sought liquidation of the Corporate Debtor and was competent to make recoveries, rendering the Directors' suggestion baseless. The Tribunal rejected the application, affirming the Resolution Professional's actions.

Issue II: Application to condone delay in filing

The Resolution Professional filed an application (MA/453/2019) to condone a 9-day delay in filing another application (MA/454/2019). The Tribunal found the reasons provided in the Affidavit convincing and allowed the condonation of the delay, thereby accepting the application (MA/453/2019) in the Corporate Debtor's case.

Issue III: Application for liquidation of the Corporate Debtor

The Resolution Professional filed an application (MA/454/2019) under Section 33(2) of the I&B Code, 2016, seeking the liquidation of the Corporate Debtor, M/s. Thiripura Chits Private Limited. The Resolution Professional detailed the challenges faced, including the unavailability of records, inability to appoint valuers, and the involvement of numerous deposit holders. With no Resolution Plan received within the stipulated period, the Tribunal ordered the liquidation of the Corporate Debtor. The Resolution Professional was appointed as the Company Liquidator, and various directives regarding the liquidation process were issued. The Order was communicated for immediate compliance.

This comprehensive analysis of the judgment from the National Company Law Tribunal, Chennai Bench, outlines the issues addressed, the arguments presented, and the final decisions made regarding the applications filed in the context of the Corporate Debtor's insolvency proceedings.

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