Tribunal approves liquidation for Kotak Urja Pvt Ltd under Insolvency and Bankruptcy Code

The Tribunal approved the liquidation application for Kotak Urja Private Limited under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. Mr. Devarajan Raman was appointed as the Liquidator to oversee the process. A resolution to change the Resolution Professional as the Liquidator was rejected due to lack of specific reasons. The Liquidator was granted powers and instructed to follow regulations diligently. The Liquidation Order discharged officers, employees, and workmen of the Corporate Debtor, except for ongoing business operations.

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Issues Involved:
1. Liquidation of Kotak Urja Private Limited under Section 33(1) of the Insolvency and Bankruptcy Code, 2016.
2. Change of Resolution Professional (RP) as the Liquidator without specific provisions or reasons.

Analysis:

Issue 1: Liquidation of Kotak Urja Private Limited
The application was filed seeking liquidation of the Corporate Debtor under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated earlier, and various steps were taken in compliance with the regulations. Despite efforts to find resolution applicants, the Corporate Debtor could not be resolved, leading to the decision for liquidation. The Committee of Creditors (CoC) voted in favor of appointing Mr. M. Suresh Kumar as the Liquidator, and the resolution was passed with the required majority. The Adjudicating Authority approved the liquidation application, and Mr. Devarajan Raman was appointed as the Liquidator to conduct the liquidation process. The Liquidator was granted powers as per the Code and regulations to manage the liquidation proceedings effectively.

Issue 2: Change of Resolution Professional as the Liquidator
A resolution was passed by the CoC to change the Resolution Professional (RP) as the Liquidator, but the Bench noted that there were no specific provisions or reasons provided for this change. As a result, the Bench rejected the resolution for changing the RP as the Liquidator. Mr. Devarajan Raman, the original RP, was appointed as the Liquidator to oversee the liquidation process in accordance with Section 34(1) of the Code. The Liquidator was entitled to fees as per the relevant regulations and was directed to follow the liquidation process outlined by the Insolvency and Bankruptcy Board of India. The Liquidator was granted powers equivalent to those of the Board of Directors, Key Managerial Personnel, and Partners of the Corporate Debtor during the liquidation process.

In conclusion, the Tribunal allowed the liquidation application and appointed Mr. Devarajan Raman as the Liquidator to manage the liquidation process of Kotak Urja Private Limited. The Liquidator was instructed to follow the regulations diligently, issue public notices, cooperate with the personnel of the Corporate Debtor, and handle legal proceedings on behalf of the Corporate Debtor as necessary. The Liquidation Order was deemed a notice of discharge to the officers, employees, and workmen of the Corporate Debtor, except for ongoing business operations during the liquidation process.

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