Corporate Debtor M/s. Gaytech Engineering Pvt. Ltd. ordered for liquidation post unsuccessful CIRP

The Adjudicating Authority ordered the liquidation of the Corporate Debtor, M/s. Gaytech Engineering Pvt. Ltd., following the closure of the Corporate Insolvency Resolution Process (CIRP) due to unsuccessful asset sale and pending litigations, with no revival prospects. The Resolution Professional, CA Vinod Pahelwani, was appointed as the Liquidator as per the terms approved by the Committee of Creditors (CoC). The Liquidator was directed to issue a public announcement about the liquidation and inform the Registrar of Companies, with actions to be in accordance with Section 35 of the IBC and the Adjudicating Authority's directions.

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Issues:
Liquidation of Corporate Debtor under IBC, Appointment of Liquidator, Public Announcement, Cooperation of Corporate Debtor Personnel, Disputed Receivables Litigation, Replacement of Liquidator.

Analysis:
The application filed by the Resolution Professional sought orders for liquidation of the Corporate Debtor under sections 33(1) and 33(2) of the IBC, appointment of a liquidator under section 34(1) of the IBC, issuance of a Public Announcement declaring the Corporate Debtor in liquidation, and direction to intimate the liquidation order to the Registrar of Companies. The Corporate Debtor's Committee of Creditors (CoC) had resolved to close the Corporate Insolvency Resolution Process (CIRP) due to unsuccessful asset sale and pending litigations, indicating no revival prospects.

The CoC further resolved that the Resolution Professional, CA Vinod Pahelwani, would act as the Liquidator unless replaced by the Adjudicating Authority. The Adjudicating Authority noted the closure of CIRP and the subsequent application for liquidation, leading to the decision to order liquidation for the Corporate Debtor, M/s. Gaytech Engineering Pvt. Ltd. The Resolution Professional was appointed as the Liquidator as per the terms approved by the CoC in their meeting.

The Liquidator was directed to issue a public announcement about the Corporate Debtor's liquidation and inform the Registrar of Companies accordingly. The Liquidator's actions were to be in accordance with Section 35 of the IBC, subject to the Adjudicating Authority's directions. The application was disposed of in line with the decisions made regarding the liquidation process and the appointment of the Liquidator.

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