KK Milk Fresh India Ltd. Faces Liquidation as Resolution Plan Fails

The Tribunal approved the application for liquidation of the Corporate Debtor, KK Milk Fresh India Ltd., under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. Despite efforts to secure a resolution plan, none were received within the stipulated timelines. Consequently, the Committee of Creditors (CoC) advised the Resolution Professional (RP) to file for liquidation, leading to the RP's appointment as the Liquidator. The Tribunal endorsed this decision, ordering the liquidation of the company and instructing the Liquidator to commence the liquidation process, issue public announcements, and notify relevant parties.

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Issues: Application for liquidation of Corporate Debtor under Section 33(1) of the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:
1. 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, KK Milk Fresh India Ltd., and the appointment of a Liquidator.
2. The application was admitted for initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of IBC, 2016, with Mr. Swami Deen Gupta appointed as the Interim Resolution Professional.
3. Despite efforts, the necessary information about the Corporate Debtor was not available due to non-cooperation from ex-directors, leading to the replacement of the IRP with a new RP, Mr. Chanchal Dua, approved by the Tribunal.
4. The RP invited Expressions of Interest (EOI) for submission of Resolution Plans, with multiple meetings held to discuss the process, including the valuation of assets and the submission deadline for Resolution Plans.
5. The RP informed the CoC that no Resolution Plans were received within the stipulated timelines, prompting discussions in the CoC meetings regarding the liquidation of the Corporate Debtor due to the expiry of the CIRP period without any viable alternatives.
6. The CoC unanimously advised the RP to file an application for liquidation of the Corporate Debtor, as no Resolution Plan was received, leading to the decision to appoint the RP as the Liquidator in accordance with the provisions of the IBC.
7. The Tribunal acknowledged the CoC's decision to liquidate the Corporate Debtor as appropriate, considering the failed attempts to obtain a resolution, and ordered the liquidation of KK Milk Fresh India Ltd. with the RP appointed as the Liquidator.
8. Directions were given for the Liquidator to issue a public announcement, proceed with the liquidation process, submit a Preliminary Report, and notify the concerned parties about the discharge of officers, employees, and workmen of the Corporate Debtor.
9. The order also specified the cessation of the Moratorium under Section 14 of IBC, 2016, and the commencement of a fresh Moratorium under Section 33(5) of the Code, with copies of the order to be communicated to relevant stakeholders and authorities for necessary actions and records update.

This judgment reflects a comprehensive analysis of the application for liquidation of a Corporate Debtor under the Insolvency and Bankruptcy Code, detailing the procedural steps, CoC decisions, RP actions, and Tribunal's order for liquidation and appointment of a Liquidator.

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