Insolvency Petition Admitted, Liquidation Ordered: Key Steps & Roles

The Tribunal admitted an insolvency petition against the Corporate Debtor under Section 9 of the Insolvency and Bankruptcy Code, 2016, leading to the appointment of an Interim Resolution Professional. After failed attempts to secure a resolution plan, the Committee of Creditors agreed on liquidation. The Tribunal ordered liquidation under Section 33(1) of the IBC, appointing a Liquidator to oversee the process. The Liquidator was instructed to issue public announcements, submit a Preliminary Report, and initiate the liquidation process as per relevant regulations.

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Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP)
2. Public announcements and appointment of Authorized Representative
3. Constitution and meetings of the Committee of Creditors (CoC)
4. Resolution Professional's actions and applications
5. Liquidation of the Corporate Debtor

Detailed Analysis:

1. Initiation of Corporate Insolvency Resolution Process (CIRP):

The Tribunal admitted an insolvency petition filed by the Operational Creditor against the Corporate Debtor under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Tribunal was convinced of the non-payment of the claim amount, indicating a default as per Section 9 of IBC, 2016. Consequently, Ms. Sarita Duck was appointed as the Interim Resolution Professional (IRP).

2. Public Announcements and Appointment of Authorized Representative:

Following Regulation 6(1) of the CIRP Regulations, the IRP made a public announcement on 05.11.2018. Upon receiving claims from homebuyers, another announcement was made on 20.11.2018, offering three choices for an Authorized Representative. Mr. Vikas Rajvanshi was selected as the Authorized Representative of Financial Creditors in the class of Form CA.

3. Constitution and Meetings of the Committee of Creditors (CoC):

The IRP constituted the Committee of Creditors (CoC) and convened the first meeting on 05.12.2018. The CoC confirmed the IRP's appointment as the Resolution Professional (RP) and noted various claims from Financial Creditors, Operational Creditors, Workmen, Employees, Home Buyers, and other creditors. The CoC resolved to appoint legal representatives for litigation and a valuer for property assessment. Interest at 8% was to be charged on all admitted financial claims for voting rights calculation.

Subsequent meetings addressed various issues:
- Second Meeting (15.01.2019): Resolved to open an account with Kotak Mahindra Bank, publish Expression of Interest (EoI), and handle flat registrations upon Tribunal approval.
- Third Meeting (27.02.2019): Resolved to raise interim finance through property sale, conduct a forensic audit, and investigate undervalued transactions.
- Fourth Meeting (27.04.2019): Decided to extend the CIRP period by 90 days, raise interim finance, and settle home buyers' issues.
- Fifth Meeting (22.07.2019): Agreed on liquidation due to the absence of a resolution plan.

4. Resolution Professional's Actions and Applications:

The RP filed several applications:
- IA No. 84/JPR/2019: Sought possession of premises from Narayandham Residential Welfare Society.
- IA No. 97/JPR/2019: Requested possession of a flat from Mr. Hukum Singh Shekhawat.
- IA No. 114/JPR/2019, IA No. 115/JPR/2019, IA No. 116/JPR/2019, IA No. 125/JPR/2019: Home Buyers' applications for condonation of delay in filing claims.
- IA No. 124/JPR/2019: Addressed unauthorized construction by the Corporate Debtor.
- IA No. 126/JPR/2019: Sought payment of Rs. 36,00,000 from Mr. Shiv Kumar Lath and others.
- IA No. 142/JPR/2019, IA No. 143/JPR/2019, IA No. 173/JPR/2019, IA No. 209/JPR/2019: Home buyers' applications for condonation of delay in filing claims.
- IA No. 153/JPR/2019: Home buyers' application against the RP.
- IA No. 193/JPR/2019: Sought payment of Rs. 44,00,000 from Mr. Rajendra Singh Rathore.
- IA No. 229/JPR/2019: Filed under Section 66 of IBC against ex-directors.

5. Liquidation of the Corporate Debtor:

Due to the absence of a resolution plan within the maximum period of 270 days, the CoC assented to the liquidation of the Corporate Debtor. The Tribunal ordered the liquidation under Section 33(1) of IBC, 2016, appointing Ms. Sarita Duck as the Liquidator. The Tribunal directed the Liquidator to issue a public announcement, communicate the order to relevant authorities, and proceed with the liquidation process as per Chapter III of Part II of IBC, 2016, and relevant regulations.

The Tribunal also ordered the cessation of the moratorium under Section 14 and the commencement of a fresh moratorium under Section 33(5). The Liquidator was instructed to submit a Preliminary Report within seventy-five days and proceed with the liquidation process, including notifying fiscal and regulatory authorities.

Pending applications related to the liquidation process were directed to be listed along with the main liquidation proceedings.

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