2022 (2) TMI 905 - Tri - Insolvency and Bankruptcy

Tribunal Orders Liquidation of Corporate Debtor: Key Directives for Liquidator and Process

Nitin Jain and Ors. Versus Ratandeep Infrastructure Private Limited

The Tribunal ordered the liquidation of the Corporate Debtor under section 33(2) of the Insolvency & Bankruptcy Code, appointing Mr. Alok Kumar ... Seeking liquidation of the Corporate Debtor - no resolution plan was received - section 33(1) of the Insolvency & Bankruptcy Code, 2016 - HELD THAT:- On 28.01.2021, in the 6th meeting of the CoC, it was resolved that as there are no possible ways for revival of corporate debtor. Therefore, the CoC with 100% voting share recommended for liquidation of the Corporate Debtor and to appoint Mr. Alok Kumar Kuchhal as liquidator. Hence, the RP has filed the present application under section 33(1) of the Code, before this Adjudicating Authority for liquidation of the Corporate Debtor and appointment of RP as liquidator. The RP has given his consent to act as liquidator. He is stated to have a valid authorization for assignment - Corporate Debtor is ordered to be liquidated in terms of section 33(2) of the Code read with sub-section (1) thereof - Application allowed. Issues: Application for liquidation of Corporate DebtorAnalysis:Issue 1: Application for LiquidationThe Tribunal received an application from the Resolution Professional (RP) on behalf of the Committee of Creditors (CoC) seeking liquidation of the Corporate Debtor, Ratandeep Infrastructure Private Limited, due to the absence of any resolution plan. The RP requested the court to pass an order for liquidation under section 33(1) of the Insolvency & Bankruptcy Code, 2016, and appoint the present RP as the liquidator.Issue 2: Background and CIRP ProcessThe Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor was initiated based on a petition filed by Financial Creditors under section 7 of the Code. Mr. Alok Kumar Kuchhal was appointed as the Interim Resolution Professional (IRP) and later confirmed as the RP by the CoC. The RP conducted the CIRP as per the provisions of the IBC, including filing progress reports. Despite an application for a 90-day extension being denied, the CoC, with 100% voting share, recommended liquidation due to the impossibility of the Corporate Debtor's revival.Issue 3: Tribunal's DecisionThe Tribunal, after considering the RP's application and consent to act as the liquidator, ordered the liquidation of the Corporate Debtor under section 33(2) of the Code. Mr. Alok Kumar Kuchhal was appointed as the liquidator in accordance with section 34(1) of the Code and relevant regulations. The Tribunal directed the liquidator to initiate the liquidation process as per the Code and related regulations. It also specified the cessation of powers of the Board of Directors and key managerial persons, transferring them to the liquidator.Issue 4: Further DirectivesThe Tribunal ordered the issuance of a public notice regarding the Corporate Debtor's liquidation, instructed the Corporate Debtor's personnel to cooperate with the liquidator, and imposed restrictions on legal proceedings against the Corporate Debtor during liquidation. The order was deemed a discharge notice for officers, employees, and workmen of the Corporate Debtor, except for ongoing business matters managed by the liquidator. Additionally, the liquidator was directed to file a copy of the order with the Registrar of Companies and comply with other formalities.ConclusionThe Tribunal disposed of the application for liquidation, directed the Registry to inform all parties, and scheduled a progress report hearing. The judgment provided comprehensive directives for the liquidation process, emphasizing compliance with the Insolvency & Bankruptcy Code and related regulations.