Tribunal Orders Liquidation of Corporate Debtor: Key Steps and Implications The Tribunal granted the application for liquidation of the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. Despite ...
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.
Tribunal Orders Liquidation of Corporate Debtor: Key Steps and Implications
The Tribunal granted the application for liquidation of the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. Despite efforts to find resolution applicants, none expressed interest, leading to the Committee of Creditors recommending liquidation. The Resolution Professional was appointed as the Liquidator, tasked with issuing a public announcement, investigating financial affairs, and submitting a Preliminary Report. The Tribunal accepted the CoC's resolution, ordering the liquidation in accordance with the relevant regulations and directing compliance with statutory procedures.
Issues: Liquidation of Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.
Analysis: The judgment pertains to an application filed by the Resolution Professional seeking the liquidation of the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The case originated from an application filed by an Operational Creditor for initiating the Corporate Insolvency Resolution Process against the Corporate Debtor. The Interim Resolution Professional was later confirmed as the Resolution Professional of the Corporate Debtor. The Resolution Professional invited Expression of Interest from prospective resolution applicants as per the decision of the Committee of Creditors (CoC). Despite publishing the Form-G twice, no Expression of Interest was received, leading to the CoC recommending liquidation in its 4th meeting held on 31.03.2021.
The Resolution Professional provided clarifications and disclosed the fair value of assets and liquidation value as per the valuation conducted by registered valuers. The CoC approved the recommendation for liquidation with a significant majority vote. The Resolution Professional also submitted the written communication to act as the Liquidator of the Corporate Debtor in compliance with Section 34(1) of the IBC, 2016. The Tribunal, considering the circumstances and lack of alternatives, accepted the CoC's resolution and ordered the liquidation of the Corporate Debtor.
The Tribunal allowed the application, ordering the liquidation of the Corporate Debtor in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 and relevant regulations. The Resolution Professional was appointed as the Liquidator, with directions to issue a public announcement, cease the existing moratorium, investigate financial affairs, and submit a Preliminary Report within the specified timeline. Various directions were issued regarding communication of the order to relevant parties, updating records with the Registrar of Companies, and informing the Insolvency and Bankruptcy Board of India for record-keeping purposes.
In conclusion, the Tribunal granted the application for liquidation of the Corporate Debtor, appointing the Resolution Professional as the Liquidator and providing detailed directions for the liquidation process in compliance with the Insolvency and Bankruptcy Code, 2016 and related regulations.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
