2019 (7) TMI 964 - Tri - Insolvency and Bankruptcy

Tribunal Orders Liquidation of M/s. BKR Hotels & Resorts: Resolution Professional Appointed

The Tribunal ordered the liquidation of M/s. BKR Hotels & Resorts Private Ltd. due to the lack of viable resolution plans, with 95.90% of the ... Admissibility of petition - initiation of Corporate Insolvency Resolution Process (CIRP) - Corporate Debtor - HELD THAT:- The Resolution Professional has not received any viable and feasible Resolution Plan from the Resolution Applicants in respect of the Corporate Debtor and therefore, the CoC has decided to recommend for liquidation of the Corporate Debtor - the CoC vide electronic voting conducted between 22.02.2019 10.30 A.M and 23.02.2019 10.30 A.M., decided to liquidate the business of the Corporate Debtor with a vote of 95.90%. The Resolution Professional has filed the instant MA/232/2019 in CP/472/IB/2017 for seeking order for liquidation of the Corporate Debtor viz., M/s. BKR Hotels & Resorts Private Limited, Since, no Resolution Plan has been received by this Authority under Sub-section (6) of Section 30 of the I&B Code, 2016, before the expiry of the maximum period of CIR Process, the Corporate Debtor has to be ordered for Liquidation. Application disposed off. Issues:Liquidation of Corporate Debtor under Section 33 of the Insolvency and Bankruptcy Code, 2016.Analysis:1. The case involved an application (MA/232/2019) filed in CP/472/IB/2017 under Section 33 of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional sought an order to liquidate the Corporate Debtor, M/s. BKR Hotels and Resorts Private Limited, as no viable resolution plan had been received.2. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an application by Indian Bank under Section 7 of the I&B Code. The Resolution Professional took over the management, invited claims from creditors, and constituted the Committee of Creditors (CoC).3. Several Resolution Applicants expressed interest, but only 3 submitted plans. Despite extensions granted to some applicants, the CoC rejected various plans for non-compliance with the I&B Code provisions.4. The CoC ultimately recommended liquidation of the Corporate Debtor due to the lack of viable resolution plans. A voting process resulted in a decision to liquidate with 95.90% in favor.5. The Tribunal, exercising powers under Section 33 of the I&B Code, ordered the liquidation of M/s. BKR Hotels & Resorts Private Ltd. The Resolution Professional was appointed as the Company Liquidator to manage the liquidation process as per the Code's provisions.6. The moratorium declared under Section 14 of the I&B Code ceased to have effect, and legal proceedings against the Corporate Debtor were restricted. The Company Liquidator was authorized to handle legal matters on behalf of the Corporate Debtor with the Tribunal's approval.7. The Order detailed the transfer of powers from the Board of Directors to the Company Liquidator, the discharge of officers and employees, and the Liquidator's entitlement to fees as per regulations.8. The Company Liquidator was directed to notify relevant authorities and comply with the Order. The Registry was instructed to provide a copy of the Order to the Company Liquidator promptly for information and compliance, thereby concluding the liquidation proceedings against the Corporate Debtor.This comprehensive analysis covers the key details and legal implications of the judgment related to the liquidation of the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016.