Court orders liquidation of Corporate Debtor under Insolvency & Bankruptcy Code The court ordered the liquidation of the Corporate Debtor company under Sections 33(1), 33(2), and 34(1) of the Insolvency & Bankruptcy Code, 2016. ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Court orders liquidation of Corporate Debtor under Insolvency & Bankruptcy Code
The court ordered the liquidation of the Corporate Debtor company under Sections 33(1), 33(2), and 34(1) of the Insolvency & Bankruptcy Code, 2016. Despite efforts to find a resolution plan, none materialized, leading the Committee of Creditors to opt for liquidation with a 100% majority vote. The Resolution Professional was appointed as the Liquidator, with all powers transferred accordingly. The Liquidator was directed to coordinate with authorities, recover debts, and follow the liquidation process regulations. The moratorium was lifted, and the liquidation process was to be carried out as per the specified regulations. The Interlocutory Application for liquidation was allowed and disposed of accordingly.
Issues: Liquidation of Corporate Debtor Company under Section 33(1), 33(2) & 34(1) of the Insolvency & Bankruptcy Code, 2016.
Analysis: The Interlocutory Application was filed by the Resolution Professional seeking liquidation of the Corporate Debtor under the relevant sections of the Insolvency & Bankruptcy Code. The Corporate Debtor was admitted under Corporate Insolvency Resolution Process, and after the expiry of the initial 180 days, an extension of 90 days was granted. Despite two invitations for expression of interest, no concrete proposals were received, leading the Committee of Creditors (CoC) to decide against extending the process and opting for liquidation.
During the CoC meeting, it was resolved that since no Resolution Plan was received, the liquidation of the Corporate Debtor was recommended with 100% majority. The Resolution Professional was authorized to act as the Liquidator, and the necessary consent was provided. The Liquidator was appointed as per Section 34(1) of the Insolvency & Bankruptcy Code, and all powers of the Board of Directors and key managerial persons ceased to exist, transferring to the Liquidator.
The Liquidator was directed to coordinate with all relevant authorities and provide necessary information for the liquidation process. Legal action to recover trade receivables and other credits was mandated, and a notice of discharge was issued to officers, employees, and workmen of the Corporate Debtor, except for ongoing business operations during liquidation. The moratorium was lifted, and the Liquidator was instructed to follow the liquidation process regulations as specified by the Insolvency and Bankruptcy Board of India.
The order for liquidation was allowed, directing the Liquidator to initiate and complete the liquidation process as per the Code's regulations. The Registry was directed to upload the order on the official website and send copies to relevant parties. The Interlocutory Application seeking liquidation was allowed and disposed of accordingly.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
