Company liquidated as no resolution plan filed, Resolution Professional appointed Liquidator

The Tribunal ordered the liquidation of the Company under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, appointing the Resolution Professional as the Liquidator of the Corporate Debtor due to the absence of any resolution plan within the stipulated period, leading to a unanimous decision by the Committee of Creditors to proceed with liquidation as the Corporate Insolvency Resolution Process timeframe had lapsed.

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Issues involved:
Liquidation of the Company under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 and Appointment of the Resolution Professional as Liquidator of the Corporate Debtor.

Detailed Analysis:

1. Background and Proceedings: The application was filed for liquidation of the Corporate Debtor under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. The NCLT, Chennai Bench admitted the application under Section 7 of the IB Code by the Financial Creditor against the Corporate Debtor and appointed the applicant as the Interim Resolution Professional. The Committee of Creditors (CoC) was formed, and the Resolution Professional was appointed unanimously.

2. Compliance and Actions Taken: The Resolution Professional undertook various actions, including appointing Forensic Auditors for a forensic audit, preparing and sharing an information memorandum with the CoC, and calling meetings to discuss the Expression of Interest (EoI) process for the Company's revival. Public announcements were made in newspapers and on relevant websites regarding the EoI process.

3. Extension of Time and Decision for Liquidation: Despite efforts to attract resolution applicants, no Expression of Interest was received within the specified time frame. The CoC members, after due deliberation, decided to extend the time frame for EoI submission. However, no resolution plans were received even after the extension. Consequently, with a 100% vote, the CoC decided to liquidate the Corporate Debtor as the 180-day period for Corporate Insolvency Resolution Process (CIRP) had expired.

4. Legal Provisions and Order: Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 empowers the Adjudicating Authority to order liquidation of the Corporate Debtor if no resolution plan is received within the stipulated period. In this case, considering all aspects, the Tribunal ordered the liquidation of the Company under Section 33(1)(a) of the Code and appointed the Resolution Professional as the Liquidator of the Corporate Debtor.

5. Disposition of the Matter: The Tribunal disposed of the matter by passing the order for liquidation and appointing the Resolution Professional as the Liquidator of the Corporate Debtor, in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

This detailed analysis outlines the sequence of events, actions taken, decision-making process, legal provisions applied, and the final order of the Tribunal regarding the liquidation of the Corporate Debtor under the specified sections of the Insolvency and Bankruptcy Code, 2016.

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