Tribunal Upholds Liquidation Order; Dismisses Appeal Challenging Corporate Insolvency Resolution Process and Liquidation Decision.

The Tribunal dismissed the appeal against the Order allowing liquidation of the Corporate Debtor, upholding the Adjudicating Authority's decision. The Committee of Creditors (CoC) resolved for liquidation due to the absence of a resolution plan, a decision deemed justified by the Tribunal. The Appellant's challenge to the Corporate Insolvency Resolution Process (CIRP) and liquidation decision was rejected, as the Tribunal found no merit in their contentions. The Appellant's proposal during liquidation was acknowledged but dismissed. Concerns about pending litigation were addressed, confirming no requirement for the Resolution Professional to pursue such matters without court approval.

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Issues involved:
The appeal against the Order allowing liquidation of the Corporate Debtor and rejecting various reliefs prayed for by the Appellant.

Liquidation Order and Rejection of Reliefs:
The Adjudicating Authority allowed the Resolution Professional's application for liquidation of the Corporate Debtor and rejected the Appellant's I.A. No. 25/AHM/2023 which sought to set aside the Corporate Insolvency Resolution Process. The CoC resolved for liquidation due to the absence of a resolution plan in the CIRP, a decision upheld by the Adjudicating Authority.

Challenge to CIRP and Liquidation Decision:
The Appellant challenged the CIRP process and the decision for liquidation, contending that the Resolution Professional did not follow the IBC scheme and raised allegations against them. However, the Tribunal found no merit in these contentions as the CoC's decision for liquidation was justified in the absence of a resolution plan.

Appellant's Proposal in Liquidation:
The Appellant expressed interest in proposing a scheme during liquidation, asserting their eligibility under Section 29A as per the Liquidation Process Regulations, 2016. The Tribunal acknowledged this submission but dismissed the appeal, upholding the decision for liquidation.

Litigation Concerns:
The Appellant raised concerns about pending litigation involving the Company and the Suspended Director against the Bank, suggesting that the Resolution Professional should have pursued these matters. The Tribunal clarified that there was no need for the RP to pursue the Director's litigation against the Bank, and any litigation on behalf of the Company required court approval, which was not obtained in this case.

Conclusion:
After considering the submissions and records, the Tribunal dismissed the appeals, emphasizing that the CoC's decision for liquidation was appropriate in the absence of a resolution plan. The Tribunal found no errors in the Adjudicating Authority's decision to allow the Resolution Professional's application for liquidation.

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