VGA Developers Pvt Ltd faces liquidation as CoC rejects resolution plan, appoints liquidator

The tribunal ordered the liquidation of the corporate debtor, VGA Developers Private Limited, following the rejection of the resolution plan by the Committee of Creditors (CoC). A resolution for liquidation was passed in the CoC meeting, leading to the appointment of a liquidator and the commencement of the liquidation process in compliance with the Insolvency and Bankruptcy Code, 2016 and relevant regulations. This marked the conclusion of the insolvency resolution proceedings for the corporate debtor.

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Issues:
1. Application for liquidation of the corporate debtor under Section 33(1) of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with regulations during the Corporate Insolvency Resolution Process (CIRP).
3. Extension of CIRP timelines due to the COVID-19 pandemic.
4. Rejection of the resolution plan and initiation of the liquidation process.
5. Passing of resolution for liquidation by the Committee of Creditors (CoC).
6. Appointment of a liquidator and subsequent directions for the liquidation process.

Issue 1: Application for Liquidation:
The Resolution Professional (RP) filed an application under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the corporate debtor, VGA Developers Private Limited.

Issue 2: Compliance with Regulations:
The RP conducted the Corporate Insolvency Resolution Process (CIRP) in compliance with Section 15 of the Code and Regulation 6 of the IBBI Regulations. Public announcements were made as required by the regulations.

Issue 3: Extension of CIRP Timelines:
Due to the COVID-19 pandemic, an exclusion period was granted by the tribunal, extending the CIRP timelines. The CIRP expiration dates were adjusted accordingly, and extensions were granted to accommodate the delays caused by the pandemic.

Issue 4: Rejection of Resolution Plan and Liquidation Process:
Despite efforts to find a resolution applicant, the plan submitted was rejected by the CoC. With no viable resolution plan in place, the RP sought liquidation as per Section 33 of the IBC, 2016.

Issue 5: Resolution for Liquidation by CoC:
In the 8th meeting of the CoC, a resolution was passed with a significant voting share, initiating the liquidation process of the corporate debtor as per Section 33(2) of the IBC, 2016 and relevant regulations.

Issue 6: Appointment of Liquidator and Directions:
Following the decision for liquidation, a liquidator was appointed, and various directions were issued for the commencement and conduct of the liquidation process. These directions included public announcements, communication to relevant authorities, cessation of moratorium, and submission of reports within specified timelines.

In conclusion, the tribunal ordered the liquidation of the corporate debtor, VGA Developers Private Limited, based on the resolution passed by the CoC and in accordance with the provisions of the IBC, 2016 and relevant regulations. The appointment of the liquidator and subsequent directions marked the initiation of the liquidation process, bringing an end to the insolvency resolution efforts for the corporate debtor.

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