2021 (5) TMI 474 - Tri - Insolvency and Bankruptcy

Tribunal Orders Liquidation of Corporate Debtor: Compliance with IBC Guidelines

The Tribunal ordered the liquidation of the Corporate Debtor after the Committee of Creditors unanimously determined that revival or resolution was not ... Liquidation of Corporate Debtor - Section 33(1)(a) of Chapter III of IBC, 2016 - HELD THAT:- Since, in the 1st CoC meeting held on 03.08.2020, the Committee of Creditors has deliberated about the current affairs of the Corporate Debtor by taking into consideration that there are no movable or immovable assets in relation to the Corporate Debtor and also keeping in view of the fact that the Corporate Debtor is not running its business and based on its commercial wisdom has decided to liquidate the Corporate Debtor, by taking into consideration the provisions of Section 33 of IBC, 2016 and in the absence of any opposition to the Application from the Promoters of the Corporate Debtor and also guided by the decision of the Hon'ble Supreme Court in the matter of K. SASHIDHAR VERSUS INDIAN OVERSEAS BANK & OTHERS [2019 (2) TMI 1043 - SUPREME COURT] this Tribunal orders for the liquidation of the Corporate Debtor. The Corporate Debtor are allowed to be liquidated - application allowed. Issues:Liquidation of Corporate Debtor under Section 33 of IBC, 2016Analysis:The application filed under Section 33(1)(a), 33(2), and 34(1) of the Insolvency and Bankruptcy Code 2016 sought various reliefs, including the liquidation of the Corporate Debtor as per Section 33(1)(a) of the IBC. The Tribunal had earlier initiated the Corporate Insolvency Resolution Process (CIRP) for the Corporate Debtor and appointed an Interim Resolution Professional (IRP) based on a Section 9 application by the Operational Creditor. The Committee of Creditors (CoC) had unanimously decided in its meetings that the Corporate Debtor had no scope for revival or resolution, leading to the decision to liquidate the company. The CoC meetings also fixed the remuneration for the Liquidator, and the Tribunal, considering the absence of movable or immovable assets, ordered the liquidation of the Corporate Debtor in accordance with the provisions of Section 33 of the IBC.The appointed Liquidator was directed to strictly adhere to the IBC, 2016, and related regulations, issue public announcements, investigate financial affairs, communicate with relevant authorities, and proceed with the liquidation process as per the IBC guidelines. The Tribunal ordered the cessation of the Moratorium under Section 14 of the IBC and the commencement of a fresh Moratorium under Section 33(5). The Liquidator was instructed to investigate financial affairs, submit reports within specified timelines, and cooperate with relevant stakeholders for the successful liquidation process of the Corporate Debtor. The application was disposed of with the outlined terms, ensuring a systematic liquidation process in compliance with the IBC regulations.