National Company Law Tribunal approves liquidation with Nishi Jain as Liquidator

The National Company Law Tribunal, Mumbai Bench, approved the liquidation of the Corporate Debtor and appointed Ms. Nishi Jain as the Liquidator. This decision followed multiple Committee of Creditors meetings where the lack of viable Resolution Plans led to a unanimous vote for liquidation. The Liquidator was tasked with initiating the liquidation process, publishing notices, ceasing the Board of Directors' powers, and updating the Corporate Debtor's data with the Registrar of Companies.

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Issues involved:
1. Application filed under section 33 of the Insolvency & Bankruptcy Code, 2016 seeking Liquidation Order and appointment of the Applicant as liquidator.
2. Initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and appointment of Interim Resolution Professional (IRP).
3. Conduct of CoC meetings during the CIRP process.
4. Decision-making process leading to the resolution for liquidation of the Corporate Debtor.
5. Approval and appointment of the Liquidator.
6. Directions for the liquidation process and responsibilities of the Liquidator.

Issue 1: Application for Liquidation Order and appointment of Liquidator
The Application was filed under section 33 of the Insolvency & Bankruptcy Code, 2016 seeking a Liquidation Order for the Corporate Debtor. The Resolution Professional (RP) submitted the application based on the resolution passed by the Committee of Creditors (CoC) in its 5th meeting, indicating a requisite majority as per the Code.

Issue 2: Initiation of Corporate Insolvency Resolution Process (CIRP)
The Adjudicating Authority had directed the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor based on a petition filed by an Operational Creditor under section 9 of the Code. Ms. Nishi Jain was appointed as the Interim Resolution Professional (IRP) during this process.

Issue 3: Conduct of CoC meetings during CIRP
Several CoC meetings were conducted during the CIRP, where various matters were discussed and decisions were made. These meetings included discussions on claims, appointment of Registered Valuers, valuation of assets, and responses received from Expression of Interest (EoI) invitations.

Issue 4: Decision-making process for liquidation
After multiple CoC meetings and considering the lack of viable Resolution Plans, the CoC, with 100% voting share, passed a resolution for the liquidation of the Corporate Debtor. The decision was based on the absence of responses to Information Memorandum and the Letter of Undertaking from prospective Resolution Applicants.

Issue 5: Approval and appointment of the Liquidator
In the 5th CoC meeting, the CoC approved the liquidation of the Corporate Debtor and appointed Ms. Nishi Jain as the Liquidator. The fees of the Liquidator were to be paid as approved by the CoC, and the Liquidator was authorized to file the necessary application for liquidation.

Issue 6: Directions for the liquidation process
The Tribunal ordered the liquidation of the Company and appointed Ms. Nishi Jain as the Liquidator. Various directions were provided, including the initiation of the liquidation process, publication of notices, cessation of powers of the Board of Directors, cooperation from personnel, restrictions on legal proceedings, and updating of Corporate Debtor's data with the Registrar of Companies.

This detailed analysis covers the legal judgment issued by the National Company Law Tribunal, Mumbai Bench, regarding the liquidation of the Corporate Debtor and the appointment of the Liquidator based on the proceedings and decisions made during the Corporate Insolvency Resolution Process (CIRP).

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