Approval of Liquidation Application for M/s. Radhey Sham Tandon Manufacturing

The Tribunal approved the application for liquidation under section 33(2) of the Insolvency and Bankruptcy Code, 2016, appointing Mr. Sanjeev Bindal as the Liquidator for M/s. Radhey Sham Tandon Manufacturing Private Limited. The Committee of Creditors unanimously decided to liquidate the Corporate Debtor's assets due to lack of business activity and limited assets. Various directions were issued for the liquidation process, including communication of the order to relevant authorities, cessation of the previous moratorium, and investigation of financial affairs.

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Issues:
1. Application for liquidation under section 33(2) of the Insolvency and Bankruptcy Code, 2016.
2. Decision of the Committee of Creditors (CoC) to liquidate the assets of the Corporate Debtor.
3. Appointment of the Liquidator and related directions for the liquidation process.

Analysis:
1. The Tribunal received an application from the Resolution Professional under section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the Corporate Debtor, M/s. Radhey Sham Tandon Manufacturing Private Limited. The CoC had previously initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, and after thorough deliberations, decided to proceed with liquidation due to the Corporate Debtor's lack of business activity and limited assets.

2. The CoC, in its 5th meeting, unanimously resolved to liquidate the assets of the Corporate Debtor, and subsequently, in the 9th meeting, passed further resolutions with 100% voting share to file a liquidation application before the Tribunal. The Resolution Professional proposed the liquidation in the 5th CoC meeting, and after extensive discussions, the CoC confirmed the decision to liquidate under Section 33 of the Code.

3. The Tribunal allowed the application for liquidation and appointed Mr. Sanjeev Bindal as the Liquidator in accordance with Section 32(1) of the Code. Various directions were issued, including communication of the order to relevant authorities, cessation of the previous moratorium, initiation of a fresh moratorium, discharge notice to employees, commencement of the liquidation process as per the Code, investigation of financial affairs, disposal of pending applications, submission of a Preliminary Report, and notification to concerned parties. Additionally, a related application was disposed of in line with the terms of the liquidation order.

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