Resolution Passed for Liquidation of Greendiamz Biotech Ltd. - Key Duties of Appointed Liquidator

The CoC passed a resolution for liquidation of Corporate Debtor M/s. Greendiamz Biotech Ltd. after considering submitted Resolution Plans. A Liquidator was appointed to oversee the liquidation process, with powers transferred from the Board of Directors to the Liquidator. The Liquidator was directed to manage legal proceedings, explore selling the company as a going concern, and handle the distribution of proceeds. The Tribunal specified the Liquidator's fees to be paid from the liquidation estate and restricted legal actions against the Corporate Debtor post-liquidation, except with Adjudicating Authority approval. The liquidation order served as discharge notice to employees, with ongoing business activities managed by the Liquidator.

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Issues:
Liquidation of Corporate Debtor M/s. Greendiamz Biotech Ltd. under Sections 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016).

Detailed Analysis:

1. Admission of Application and Appointment of RP:
The Adjudicating Authority had earlier admitted an application by a Financial Creditor for Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. Mr. Chandra Prakash Jain was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP) to complete the CIRP.

2. Claims and Committee of Creditors (CoC):
Public announcements were made inviting claims from creditors, and the IRP received claims from Financial and Operational Creditors. The CoC was constituted, with Union Bank of India as the sole member.

3. Invitation for Resolution Plans:
An Expression of Interest (EoI) for submission of Resolution Plan was published, and two Resolution Applicants submitted their plans. However, the CoC did not approve any plan, leading to a resolution for liquidation of the Corporate Debtor.

4. Decision for Liquidation:
The CoC passed a resolution for liquidation after considering the submitted Resolution Plans. The Applicant provided relevant documents supporting the liquidation decision, including minutes of CoC meetings.

5. Appointment of Liquidator:
The Tribunal allowed the application for liquidation and ordered the liquidation of the Corporate Debtor. A Liquidator was appointed as the RP was not willing to take up the role. The Liquidator was directed to complete the liquidation process as per the IBC and related regulations.

6. Operational Details and Powers:
Upon liquidation, the powers of the Board of Directors and key managerial persons ceased to exist, transferring to the Liquidator. The Liquidator was instructed to explore selling the Corporate Debtor as a going concern and was granted the authority to manage legal proceedings on behalf of the Corporate Debtor.

7. Procedural Directives:
The Liquidator's fees were specified to be paid from the proceeds of the liquidation estate. Legal proceedings against the Corporate Debtor were restricted once the liquidation process commenced, with exceptions as approved by the Adjudicating Authority.

8. Notification and Discharge:
The liquidation order served as a notice of discharge to officers, employees, and workmen of the Corporate Debtor, except for ongoing business activities managed by the Liquidator. The Registry was directed to upload and send copies of the order to relevant parties.

9. Conclusion:
The Tribunal disposed of the application, confirming the liquidation of the Corporate Debtor and outlining the responsibilities and procedures to be followed during the liquidation process.

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