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Appeal against corporate debtor liquidation order dismissed. Tribunal grants final settlement opportunity within 14 days. The appeal against the liquidation order of a corporate debtor company was dismissed. The Adjudicating Authority upheld the liquidation application under ...
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Appeal against corporate debtor liquidation order dismissed. Tribunal grants final settlement opportunity within 14 days.
The appeal against the liquidation order of a corporate debtor company was dismissed. The Adjudicating Authority upheld the liquidation application under Section 33(1) of the Insolvency and Bankruptcy Code as no resolution plans were pending, and the Corporate Insolvency Resolution Process period had expired. Despite efforts by the suspended director to secure financial assistance for an One Time Settlement proposal, the Tribunal emphasized the need to adhere to the law. A final opportunity for settlement within 14 days was granted, with Cantor Fitzgerald expressing willingness to fund any settlement. The appeal was disposed of with no costs.
Issues: The judgment involves the liquidation of a corporate debtor company under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, and the challenges raised by the suspended director of the corporate debtor company regarding the liquidation order.
Summary: The appeal was filed against an order allowing the liquidation of the corporate debtor company. The Corporate Insolvency Resolution Process (CIRP) was initiated, but the Resolution Plan was not accepted by the Committee of Creditors (CoC) as it was conditional. Subsequently, an One Time Settlement (OTS) proposal was received, leading to various adjournments and attempts to settle the matter.
The Adjudicating Authority allowed the liquidation application under Section 33(1) as no resolution plans were pending, and the CIRP period had expired. The suspended director argued for more time to settle the matter, emphasizing efforts to secure financial assistance for an OTS proposal. References were made to Supreme Court judgments highlighting the objective of reviving corporate debtors and making them a going concern before resorting to liquidation.
The Liquidator opposed further delays, stating that multiple opportunities were given for settlement but no agreement was reached. The timeline of events leading to the liquidation order was detailed, showing repeated adjournments and attempts to make payments for settlement. Cantor Fitzgerald expressed readiness to fund any settlement even during the liquidation process.
In light of the circumstances and the ample time granted for settlement, the Adjudicating Authority's liquidation order was upheld. The Tribunal emphasized the importance of proceeding in accordance with the law and gave a final opportunity for settlement within 14 days from the date of the order. The appeal was disposed of with no costs, and any pending interlocutory applications were closed.
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