Tribunal Approves Liquidation of Corporate Debtor, Ms. Vaishali Arun Patrikar appointed Liquidator

The Tribunal approved the application for liquidation of the Corporate Debtor, appointing Ms. Vaishali Arun Patrikar as the Liquidator. Despite efforts to secure viable resolution plans, the rejection of the final proposal by a prospective resolution applicant led to the decision for liquidation by the Committee of Creditors with a significant majority. The Tribunal upheld the CoC's commercial decision, ordering the liquidation process in compliance with the Insolvency and Bankruptcy Code, 2016.

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Issues:
1. Application for initiating Liquidation Process under the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor.

Analysis:
The Resolution Professional filed an application under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Liquidation Process against the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated earlier, and various meetings of the Committee of Creditors (CoC) were held to appoint Resolution Professionals. Despite efforts to solicit viable resolution plans, only one Expression of Interest (EOI) was received, which did not meet the eligibility criteria. Subsequent meetings of the CoC led to the rejection of the final resolution plan submitted by a prospective resolution applicant (PRA), resulting in the CoC's decision to proceed with liquidation.

The CoC, with a significant majority of voting shares, approved the resolution for liquidation, leading to the appointment of a Liquidator as per the provisions of the Code. The Resolution Professional did not consent to act as the Liquidator, and Ms. Vaishali Arun Patrikar was recommended by the CoC to assume the role. The Tribunal, in line with Section 33(1)(a) of the Code, acknowledged the CoC's decision and ordered the liquidation of the Corporate Debtor as per the statutory framework outlined in Chapter III of the Code.

The Tribunal emphasized that it does not possess the authority to challenge the commercial decisions of the CoC regarding the rejection of resolution plans. Despite the RP's efforts during the CIRP, the absence of a viable resolution plan necessitated the CoC's resolution for liquidation, which was supported by a significant majority of voting shares. Consequently, the Tribunal ordered the liquidation of the Corporate Debtor with specified directions regarding the appointment of the Liquidator, cessation of moratorium, transfer of powers to the Liquidator, and compliance with relevant regulations and procedures outlined in the Code.

In conclusion, the Tribunal approved the application for liquidation of the Corporate Debtor, appointing Ms. Vaishali Arun Patrikar as the Liquidator and issuing directives to facilitate the liquidation process in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

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