Tribunal Grants Liquidation Application for M/s. Guntur Multi Packaging Industries

The Tribunal allowed the Application for Liquidation of M/s. Guntur Multi Packaging Industries Private Limited and appointed Mr. Siva Sai Hari Bhaskar Neti as the Liquidator. Various directions were issued, including the cessation of the Moratorium, transfer of powers to the Liquidator, and compliance with relevant sections of the Insolvency and Bankruptcy Code. The Liquidator was granted authority to manage the affairs of the Corporate Debtor, with instructions for cooperation from personnel connected with the Debtor. The Order served as notice of discharge to officers, employees, and workmen, except in cases of continued business during Liquidation.

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Issues: Application for Liquidation of Corporate Debtor and Appointment of Liquidator

Analysis:
1. Background and Application Filing:
- The Resolution Professional filed an Application under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking Liquidation of M/s. Guntur Multi Packaging Industries Private Limited and the appointment of Mr. Siva Sai Hari Bhaskar Neti as Liquidator.

2. Chronology of Events:
- The NCLT, Amaravati, admitted the Petition for Corporate Insolvency Resolution Process (CIRP) and appointed an Interim Resolution Professional (IRP) to manage the affairs of the Corporate Debtor.
- The IRP issued a Public Announcement for creditors to submit claims and constituted a Committee of Creditors (CoC) upon receiving a claim from a Financial Creditor.
- Various CoC meetings were held to discuss CIRP expenses, funding requirements, remuneration of professionals, and ultimately decided on appointing a Liquidator with 100% voting in favor.

3. Application for Liquidation:
- The Application sought the appointment of the Resolution Professional as the Liquidator due to the lack of viable proposals for the revival of the Company despite all necessary steps taken during the CIRP.

4. Tribunal's Decision:
- The Tribunal allowed the Application and directed the appointment of Mr. Siva Sai Hari Bhaskar Neti as the Liquidator.
- Various directions were issued, including the issuance of a public announcement, cessation of the Moratorium, transfer of powers to the Liquidator, and compliance with the relevant sections of the Insolvency and Bankruptcy Code and Regulations.
- The Liquidator was granted the authority to manage the affairs of the Corporate Debtor, and personnel connected with the Debtor were instructed to cooperate with the Liquidator.

5. Concluding Actions:
- The Order was deemed a notice of discharge to the officers, employees, and workmen of the Corporate Debtor, except in cases where the business is continued during the Liquidation process.
- Copies of the Order were to be furnished to relevant authorities and stakeholders, and the specific IA related to the Liquidation application was disposed of by the Tribunal.

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