Court orders liquidation of Corporate Debtor as no Resolution Plans received - Liquidator appointed

The court allowed the application for liquidation under sections 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, 2016. As no viable Resolution Plans were received, and the Corporate Debtor had no running business, the Committee of Creditors resolved for liquidation. The court upheld the CoC's decision, citing legal precedents, and ordered the appointment of a Liquidator. The moratorium under Section 14 of the IB Code ceased upon liquidation, and the Liquidator assumed control over the Corporate Debtor's affairs, with specified directives for the liquidation process.

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Issues:
Liquidation of Corporate Debtor under sections 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The judgment pertains to the liquidation of a Corporate Debtor under sections 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional (RP) filed IA No. 41 of 2019 seeking liquidation and the appointment of a Liquidator as no viable Resolution Plans were received, and the Corporate Debtor had no running business. The Committee of Creditors (CoC) had resolved for liquidation as the assets were insufficient to cover the debts. The Adjudicating Authority found no feasible Resolution Plan and noted the CoC's commercial wisdom cannot be interfered with, citing legal precedents. Consequently, the order for liquidation was passed.

The judgment ordered the cessation of the moratorium under Section 14 of the IB Code upon liquidation, directed the Liquidator to issue a public announcement, and mandated sending a certified copy of the order to the relevant authority. Legal proceedings against the Corporate Debtor were prohibited, except those initiated by the Liquidator with prior approval. The order clarified that certain legal proceedings exempted by the Central Government were not covered. The Liquidator assumed control over the Corporate Debtor's affairs, with the cooperation of personnel mandated. The Liquidator was entitled to charge fees based on the liquidation estate assets' value, as specified by the Board. The Registry was instructed to communicate the order to relevant entities promptly.

In conclusion, the IA for liquidation was allowed, and the RP was appointed as the Liquidator for the Corporate Debtor. The judgment emphasized compliance with the directives outlined for the liquidation process.

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