2021 (12) TMI 680 - Tri - Insolvency and Bankruptcy

Tribunal appoints Resolution Professional as Liquidator in Corporate Debtor liquidation process

LIC Housing Finance Ltd. Versus Victory Infratech Private Limited

LIC Housing Finance Ltd. Versus Victory Infratech Private Limited - TMI Issues:1. Application for initiation of liquidation process under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.2. Appointment of the Resolution Professional as the Liquidator under Section 34 of the Insolvency and Bankruptcy Code, 2016.3. Approval of the Committee of Creditors (CoC) for liquidation and appointment of the existing Resolution Professional as the Liquidator.4. Passing of resolutions by the CoC for liquidation and appointment of the Liquidator.5. Acceptance of the CoC's resolution for liquidation and order of liquidation of the Corporate Debtor.6. Directions for the liquidation process and appointment of the Liquidator.Analysis:1. The Application was filed seeking the initiation of the liquidation process of the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, along with the appointment of the Resolution Professional as the Liquidator.2. The Financial Creditor had previously filed an application for initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted by the Tribunal, and the Resolution Professional was appointed as the Interim Resolution Professional.3. The Committee of Creditors (CoC) was constituted, and various meetings were held where the Resolution Professional informed the members about the inability to prepare the Information Memorandum due to the suspended Board of Directors' failure to provide necessary documents.4. During the fourth meeting of the CoC, a resolution was passed unanimously for the initiation of liquidation and appointment of the existing Resolution Professional as the Liquidator, along with fixing the fee of the Liquidator.5. Considering the CoC's resolution and the absence of alternatives, the Tribunal accepted the resolution and ordered the liquidation of the Corporate Debtor.6. The Tribunal directed the appointment of the Resolution Professional as the Liquidator, issuance of a public announcement regarding the liquidation, cessation of the Moratorium under Section 14, submission of a Preliminary Report within 75 days, communication of the Order to relevant parties, and updating of Master Data with regulatory bodies.Conclusion:The Tribunal allowed the Application for liquidation, appointed the Resolution Professional as the Liquidator, and provided detailed directions for the liquidation process in accordance with the Insolvency and Bankruptcy Code, 2016, and relevant regulations. The decision was based on the unanimous resolution of the Committee of Creditors and the necessity of liquidating the Corporate Debtor.