2021 (6) TMI 851 - Tri - Insolvency and Bankruptcy

Tribunal Orders Liquidation of Moonriver Resorts Pvt Ltd under IBC

Urvashi Dilip Kamath and Ors. Versus Moonriver Resorts Private Limited

The Tribunal ordered the immediate liquidation of M/s. Moonriver Resorts Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. ... Liquidation of Company - appointment of Resolution professional as Liquidator of the Corporate Debtor - Section 33(2) of Insolvency and Bankruptcy Code, 2016 - HELD THAT:- The Interim Resolution Professional has produced the 6th and 7th CoC resolutions. In the 6th meeting of the COC it was resolved with 100% voting right to liquidate the Corporate Debtor M/s. Moonriver Resorts Private Limited and in the 7th CoC it was resolved to appoint the Interim Resolution Professional Shri K.T. Mathew as the Liquidator. From Section 33(2) of the Insolvency and Bankruptcy Code, it is clear that when a Resolution Professional at any time during the CIRP but before confirmation of Resolution Plan approaches the Adjudicating Authority with the decision of the COC approved by not less than sixty six percent of the voting share, the Adjudicating Authority shall pass a liquidation order. In this case the CoC with 100% voting right approved the resolution for liquidation of the Corporate Debtor. Hence this is a fit case to order liquidation under Section 33(2) of the IBC, 2016. The Corporate Debtor M/s. Moonriver Resorts Private Limited is hereby put under liquidation with immediate effect under Section 33(2) of IBC, 2016 - application allowed. Issues:Liquidation of the company under Section 33(2) of the Insolvency and Bankruptcy Code, appointment of the Resolution Professional as Liquidator, and other related reliefs.Analysis:The case involved an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 by the Resolution Professional regarding the matter of M/s. Moonriver Resorts Private Limited. The Resolution Professional sought various reliefs, including liquidation of the company, appointment of the Resolution Professional as Liquidator, and any other orders deemed fit by the Tribunal. The background facts revealed that the application under Section 7 of the IBC was admitted, and the Interim Resolution Professional was appointed. Several Committee of Creditors (CoC) meetings were held, valuers were appointed, and various attempts were made to revive the company's financial status. However, due to pending audits, lack of operational office, and other issues, the CoC ultimately decided to liquidate the company. The Financial Creditor recommended liquidation as a going concern due to the lack of interest from potential buyers despite multiple attempts to invite expressions of interest.The Tribunal noted that the CoC had passed resolutions in favor of liquidating the Corporate Debtor, M/s. Moonriver Resorts Private Limited, with a 100% voting right. The Tribunal referred to Section 33(2) of the IBC, which mandates that when the Resolution Professional, before the confirmation of a resolution plan, intimates the Adjudicating Authority of the CoC's decision to liquidate the corporate debtor approved by at least 66% of the voting share, the Adjudicating Authority shall pass a liquidation order. Since the CoC's decision for liquidation had 100% approval, the Tribunal found it appropriate to order liquidation under Section 33(2) of the IBC, 2016.Consequently, the Tribunal allowed the application, ordering the immediate liquidation of M/s. Moonriver Resorts Private Limited under Section 33(2) of the IBC, 2016. The Interim Resolution Professional, Shri K.T. Mathew, was appointed as the Liquidator of the Corporate Debtor. The Liquidator was directed to comply with the specified powers and duties under Sections 33(1)(ii) & (iii) and Sections 35 to 41 of the IBC, 2016, along with adhering to the Rules and Regulations issued by IBBI in this regard. The order was dated the 16th day of June, 2021.