2022 (10) TMI 206 - Tri - Insolvency and Bankruptcy

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. ... Seeking liquidation of Kotak Urja Private Limited - Section 33(1) of Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Mr. Amir Arsiwala, Ld. Counsel appeared on behalf CoC and stated that the CoC has resolved for change of RP as the Liquidator in the matter with 88.64% voting. This Bench is of view that there are no specific provisions for the change of RP as the Liquidator nor the CoC has given any reason for change of RP as Liquidator in the matter. Hence, the resolution for change of RP as Liquidator cannot be considered by this Bench and the prayer of the CoC for change of RP as Liquidator is hereby rejected. Mr. Devarajan Raman, Resolution Professional is appointed as the Liquidator to conduct Liquidation process of Kotak Urja Private Limited as provided under Section 34(1) of the Code - the application filed under section 33(1) by the Applicant is hereby Allowed and Disposed of. 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 LimitedThe 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 LiquidatorA 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.