Tribunal Grants Liquidation Order: Mr. Aishwarya Mohan Gahrana Appointed Liquidator

The Tribunal granted a liquidation order based on the Committee of Creditors' resolution, appointing Mr. Aishwarya Mohan Gahrana as the Liquidator under Section 32 of the Insolvency & Bankruptcy Code, 2016. The CoC deemed the proposed resolution plans unfeasible, leading to the initiation of the liquidation process. Detailed directions were issued for the liquidation process, including employee discharge, financial investigation, dues recovery, and report submission. The Tribunal's decision for liquidation was based on a thorough analysis of the case, culminating in the orderly disposal of the application in accordance with the Code's provisions.

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Issues: Liquidation order sought by RP based on CoC resolution - Feasibility of resolution plans - Appointment of Liquidator - Directions for liquidation process.

Analysis:
1. Liquidation Order: The IA filed under section 33(2) of the Insolvency & Bankruptcy Code, 2016, sought a liquidation order based on the resolution passed by the Committee of Creditors (CoC) in its 6th meeting. The application detailed the history of the case, starting from its admission on 08.11.2019, appointment of the IRP, constitution of the CoC, and subsequent actions taken by the RP, leading to the decision for liquidation.

2. Feasibility of Resolution Plans: The RP prepared the Information Memorandum and invited expressions of interest from prospective resolution applicants. Despite receiving interest from 4 applicants and two proposed resolution plans, the CoC, in its 6th meeting, deemed the plans not feasible and viable. Consequently, the CoC passed a resolution for the initiation of the liquidation process of the Corporate Debtor.

3. Appointment of Liquidator: The Tribunal, after considering the application and averments, deemed it a fit case for liquidation. Accordingly, Mr. Aishwarya Mohan Gahrana was appointed as the Liquidator in accordance with Section 32 of the Code. The Registry was directed to communicate this appointment to relevant authorities, and the Order of Moratorium was to cease with a fresh Moratorium under Section 33(5) commencing.

4. Directions for Liquidation Process: The Tribunal issued detailed directions for the liquidation process, including the discharge of officers, employees, and workmen of the corporate debtor, investigation of financial affairs, disposal of pending applications, recovery of dues, submission of reports, and communication of the order to relevant parties. The IA filed in the case was disposed of in accordance with the terms outlined in the order.

By meticulously analyzing the application, the Tribunal concluded that the case warranted liquidation, leading to the appointment of a Liquidator and the initiation of the liquidation process as per the provisions of the Insolvency & Bankruptcy Code, 2016. The decision was based on the CoC's assessment of the feasibility of the proposed resolution plans, ultimately culminating in the order for liquidation and the subsequent steps to be taken in the process.

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