2022 (5) TMI 492 - Tri - Insolvency and Bankruptcy

Tribunal orders liquidation of Maruti Kesri Nandan Agrofoods Pvt. Ltd.

The tribunal ordered the liquidation of the corporate debtor, Maruti Kesri Nandan Agrofoods Pvt. Ltd., following the decision of the Committee of ... Seeking liquidation of the corporate debtor - section 33(2) of Insolvency and Bankruptcy Code, 2016 - HELD THAT:- In view of the satisfaction of the conditions provided under Section 33 of the Code, the Corporate Debtor i.e. M/s Maruti Kesri Nandan Agrofoods Private Limited is directed to be liquidated in the manner as laid down in Chapter III of the Code - Application allowed. Direction for payment of fee to the Resolving Professionals pertaining to lockdown period from 25.03.2020 to 31.07.2020, which is over and above 9 months of CIRP as per the revised bill - HELD THAT:- CIRP fees has already been approved by the CoC in its first meeting dated 06.03.2020 as per Agenda item No.10 and expenses incurred by the Resolution Professional during the period from 29.01.2021 to 05.03.2021 have also been ratified by the CoC in its seventh meeting as per Agenda item No. 10 and the pending matter in issue is with respect to professional fee of the Resolution Professional for the lockdown period from 25.03.2020 to 31.07.2020 and for the period from 11.03.2021(post liquidation resolution) till the disposal IA No.294/2021 - the fee of the resolution professional must be commensurate to and be reasonable compensation of the amount of work involved,including all other expenses such as counsel fees and out of pocket expenses considering the continuous involvement of the Resolution Professional and post liquidation resolution litigation carried on for the purpose of better management of assets of Corporate debtor. Application allowed. Issues Involved:1. Liquidation of the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC).2. Payment of fees to the Resolution Professional (RP) for the lockdown period and post-liquidation resolution period.Issue-Wise Detailed Analysis:1. Liquidation of the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC):The present application (IA No. 294/2021) was filed by the Resolution Professional (RP) under Section 33(2) of the IBC, following the decision of the Committee of Creditors (CoC) to liquidate the corporate debtor, Maruti Kesri Nandan Agrofoods Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) commenced on 06.02.2020, and an extension of 90 days was granted by the NCLT, extending the CIRP period to 11.03.2021.During the 7th CoC meeting held on 10.03.2021, the sole CoC member, Punjab National Bank (PNB), decided against seeking a further extension of the CIRP period due to the lack of available assets and non-cooperation from the suspended directors. Consequently, the CoC resolved to liquidate the corporate debtor.The tribunal referred to Section 33(2) of the IBC, which allows the Adjudicating Authority to pass a liquidation order when the CoC decides to liquidate the corporate debtor. The tribunal noted that the conditions under Section 33 of the Code were satisfied and directed the liquidation of the corporate debtor.The tribunal appointed Mr. Amit Kumar Goyal as the liquidator, as the current RP expressed unwillingness to act as the liquidator and no other name was proposed by the CoC. The RP was directed to hand over all records and assets to the newly appointed liquidator. The liquidator was instructed to take custody and control of the assets, make a public announcement, and file regular progress reports. The tribunal also ordered the commencement of a fresh moratorium under Section 33(5) of the IBC and directed the liquidator to take necessary legal actions to recover trade receivables and other credits.2. Payment of fees to the Resolution Professional (RP) for the lockdown period and post-liquidation resolution period:The present application (IA No. 35/2022) was filed by the RP for payment of fees for the lockdown period from 25.03.2020 to 31.07.2020 and for the period post-liquidation resolution from 11.03.2021 till the disposal of IA No. 294/2021.The CoC had initially fixed the RP's fee at Rs. 3,00,000 for the CIRP period during its first meeting on 06.03.2020. The RP claimed additional fees for the extended period and lockdown period, citing continuous involvement and responsibilities during this time.The tribunal considered the submissions and held that the RP's fee must be commensurate with the amount of work involved, including counsel fees and out-of-pocket expenses. The CoC was directed to pay the CIRP fees and expenses for the period from 11.03.2021 till 09.05.2022, after considering the bills for the expenses incurred by the RP. The payment was to be made within three weeks of submission of the bills.Thus, IA No. 35/2022 was allowed, and the tribunal directed the CoC to compensate the RP for the additional period.