Tribunal orders liquidation under Insolvency Code, appoints Liquidator. Compliance directives issued.

The Tribunal allowed the application for liquidation under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, due to the absence of resolution plans from potential applicants. The Committee of Creditors voted in favor of liquidation, leading to the appointment of Mr. Atul Mittal as the Liquidator. The Tribunal directed immediate commencement of the liquidation process, with operational directives given to the Liquidator for asset control, public announcements, and legal actions. Compliance and communication requirements were outlined, and the Liquidator was granted the liberty to seek directions from the Tribunal during the liquidation process.

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

Detailed Analysis:
1. Background and CIRP Process: The Tribunal admitted a petition for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 10 of the IBC, 2016. Mr. Atul Mittal was appointed as the Interim Resolution Professional (IRP) who later became the Resolution Professional (RP) to carry out the CIR process.

2. Committee of Creditors (CoC) Formation: The CoC with operational creditors as members was constituted, and decisions were made in various meetings regarding the publication of invitation for Expression of Interest, evaluation matrix, and request for resolution plan.

3. Decision for Liquidation: Despite efforts to receive resolution plans, no plan was submitted by the proposed resolution applicant. The CoC decided not to extend the timelines for submission of Expression of Interest and recommended the liquidation of the company.

4. Voting and Resolution: The CoC members voted in favor of liquidation, with some members casting their votes via email. Efforts were made to enable all members, including Haryana Tax, to cast their votes, but no vote was received against the resolution.

5. Appointment of Liquidator: The CoC authorized the RP to file an application for liquidation under Section 33 of the IBC, 2016. Mr. Atul Mittal was proposed as the Liquidator, and his consent was obtained.

6. Legal Provisions and Order: The Tribunal referred to Section 33(1) of the IBC, which outlines the circumstances for passing a liquidation order. Considering the submissions and records, the Tribunal directed the immediate liquidation of the Corporate Debtor and appointed Mr. Atul Mittal as the Liquidator.

7. Operational Directives: The Liquidator was instructed to take control of assets, make public announcements, submit reports, and initiate necessary legal actions. The order also addressed the cessation of powers of the Board of Directors, cooperation with the Liquidator, and communication requirements with relevant authorities.

8. Compliance and Communication: Various directives were issued regarding the issuance of public notices, communication with the Corporate Debtor, Registrar of Companies, and the Insolvency and Bankruptcy Board of India. The Liquidator was granted the liberty to seek directions from the Tribunal during the liquidation process.

9. Conclusion: The Tribunal allowed the application for liquidation and disposed of the case, emphasizing the immediate commencement of the liquidation process and the appointment of Mr. Atul Mittal as the Liquidator.

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