2018 (9) TMI 942 - Tri - Insolvency and Bankruptcy

Associated Cylinders: Liquidation Order under Insolvency & Bankruptcy Code

The Tribunal ordered the liquidation of the Corporate Debtor, M/s. Associated Cylinders and Accessories Private Limited, under Section 33 of the ... Liquidation of the assets of the Corporate Debtor - Corporate Insolvency Resolution Process (CIRP) - Held that:- Resolution Professional has filed the Miscellaneous Application falling under Section 33(2) of the I&B Code, 2016, to liquidate the Corporate Debtor. A perusal of the of the Minutes of the Meeting of CoCs dated 03.07.2018 reveals during the CIRP, the CoCs has decided to liquidate the Corporate Debtor, the intimation of which has been given by the Resolution Professional by filing the present MA. In view of the facts and circumstances recorded by Resolution Professional in the Miscellaneous Application and the resolution passed by the CoCs as referred hereinabove, this Authority in exercise of powers conferred under Sub-Clauses (i), (ii) and (iii) of Clause (b) of Sub-Section (1) of Section 33 of the I&B Code, 2016, proceed to pass Order. This Authority order for liquidation of the Corporate Debtor viz., M/s. Associated Cylinders and Accessories Private Limited, which shall be conducted in the manner as laid down in Chapter III of Part II of the I&B Code, 2016. This Authority appoints the Resolution Professional viz., Mrs. SatyadeviAlamuri as Company Liquidator, who shall issue a public announcement stating therein that the Corporate Debtor is in liquidation; Issues:Liquidation of Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.Analysis:The judgment revolves around the Miscellaneous Application filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor. The Corporate Debtor, M/s. Associated Cylinders and Accessories Private Limited, had been undergoing Corporate Insolvency Resolution Process (CIRP) since 10.01.2018, and the 180-day period had expired on 08.07.2018. The decision to liquidate the Corporate Debtor was based on the CoCs' resolution as there were no viable Resolution Plans forthcoming, and the Corporate Debtor had ceased operations since 2017 with a turnover of 'nil' as per provisional accounts.The CoCs unanimously resolved to appoint the Resolution Professional, Mrs. Satyadevi Alamuri, as the RP during a meeting held on 27.03.2018. Despite efforts to invite Resolution Plans, no viable options emerged, leading to the decision to liquidate the Corporate Debtor. The meeting held on 03.07.2018 resulted in a unanimous resolution to liquidate the Corporate Debtor and appoint the Resolution Professional as the Liquidator, subject to NCLT approval, under Section 33(1)(a) of the I&B Code, 2016.Based on the facts presented in the Miscellaneous Application and the resolutions passed by the CoCs, the Tribunal, in exercise of powers under Section 33 of the I&B Code, 2016, ordered the liquidation of the Corporate Debtor. The Order detailed the appointment of the Resolution Professional as the Company Liquidator, the cessation of moratorium, and the transfer of powers from the Board of Directors to the Liquidator. The Order also emphasized the cooperation required from the Corporate Debtor's personnel and outlined the fee entitlement of the Company Liquidator for conducting the liquidation proceedings.The Tribunal's Order directed compliance measures, including sending a copy of the Order to relevant authorities and the Company Liquidator for information and implementation. The judgment effectively concluded the proceedings related to the liquidation of the Corporate Debtor, M/s. Associated Cylinders and Accessories Private Limited, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.