Tribunal approves liquidation of M/s. Bunt Solar India Private Limited

The Tribunal allowed the application for liquidation of the Corporate Debtor, M/s. Bunt Solar India Private Limited. The Resolution Professional (RP) was appointed as the Liquidator, with directions to follow all relevant provisions of the Insolvency and Bankruptcy Code (IBC), 2016. The decision was based on the CoC's resolution, compliance with legal provisions, and the unviability of the Corporate Debtor as a going concern. The case was scheduled for further reporting on 25.10.2019.

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Issues Involved:
1. Appointment of Resolution Professional as Liquidator.
2. Financial status and valuation of the Corporate Debtor.
3. Decision of the Committee of Creditors (CoC) to liquidate the Corporate Debtor.
4. Legal provisions and compliance under the Insolvency and Bankruptcy Code (IBC), 2016.
5. Directions and responsibilities of the Liquidator.

Issue-wise Detailed Analysis:

1. Appointment of Resolution Professional as Liquidator:
The application was filed by the Resolution Professional (RP) seeking to act as Liquidator to liquidate the Corporate Debtor, as recommended by the CoC. The RP, Shri Gorur Narasimhamurthy Venkataraman, was appointed as the Interim Resolution Professional (IRP) and subsequently as RP with 100% voting share. The RP finalized the accounts for the years 2016-17, 2017-18, and 2018-19, and appointed auditors to review the financials. The CoC, in its first meeting, resolved to liquidate the Corporate Debtor, and the RP was recommended to be appointed as the Liquidator.

2. Financial Status and Valuation of the Corporate Debtor:
The RP conducted a thorough review of the Corporate Debtor’s financials, which revealed continuous losses over three years and a negative liquidation value of Rs. 18,88,57,293/-. The Corporate Debtor had no business operations, assets, or infrastructure, making it unviable as a going concern. The CoC considered these financials and the Information Memorandum, concluding that liquidation was the only viable option.

3. Decision of the Committee of Creditors (CoC) to Liquidate the Corporate Debtor:
The CoC, in its meeting on 13.08.2019, unanimously resolved to liquidate the Corporate Debtor with 100% voting share. The CoC’s decision was based on the lack of assets and ongoing business, as detailed in the Information Memorandum and the auditor’s review report. The CoC also approved the CIRP expenses and authorized the RP to operate the Corporate Debtor’s bank transactions, although Karnataka Bank Ltd. did not agree to the latter.

4. Legal Provisions and Compliance under the Insolvency and Bankruptcy Code (IBC), 2016:
The Tribunal referred to Sections 33(1) and 33(2) of the IBC, 2016, which mandate liquidation if no resolution plan is received or if the resolution plan is rejected. The CoC’s resolution to liquidate, approved by 100% voting share, complied with these provisions. The Tribunal found that all efforts to find a suitable resolution plan had been exhausted, necessitating liquidation.

5. Directions and Responsibilities of the Liquidator:
The Tribunal issued several directions for the liquidation process:
- The Corporate Debtor, M/s. Bunt Solar India Private Limited, was ordered to be liquidated.
- The RP, Shri Gorur Narasimhamurthy Venkataraman, was appointed as the Liquidator.
- The Liquidator was directed to issue a public announcement of liquidation and to follow all relevant IBC provisions and regulations.
- A fresh moratorium under Section 33(5) was imposed, and all powers of the Corporate Debtor’s board and personnel were vested in the Liquidator.
- The Liquidator was tasked with managing the liquidation process, submitting a preliminary report within 75 days, and reporting progress to the Adjudicating Authority.
- The Tribunal directed the communication of the liquidation order to relevant authorities, including the Registrar of Companies and the Insolvency and Bankruptcy Board of India.

The Tribunal concluded that the application for liquidation was allowed, and the case was posted for further reporting on 25.10.2019.

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