TaxTMI 
TaxTMI 
2018 (12) TMI 1124
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....igher authorities of the lenders for discussing agenda items, (iii) the Information Memorandum was shared without including the audited financials of the last 2 years as mandated by Section 36 of the I&B Code, 2016, (iv) no explanation was given by the Resolution Professional about the income and expenses incurred by the Corporate Debtor during CIRP period, (v) no due diligence was made to check related party transactions, (vi) the names of the statutory auditors and forensic auditor was not shared with CoCs, (vii) the scrutiny of undervalued/preferential and related party transactions have not been completed, (viii) Forensic Auditor has not been appointed as was envisaged by the CoCs, (ix) wild allegations were made against the 3rd Applicant without addressing the key issues raised in various CoCs' meetings, (x) the Resolution Professional has concentrated only in brining the Resolution Applicants inside the meeting of the CoCs for presenting the Resolution Plan, (xi) Resolution Professional has been arbitrarily taking suo motu action and seeking for confirmation from CoCs without discussing the pros and cons of the key issues raised in various meetings and (xii) without waiting f....
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....d actions taken and duties performed by him for keeping the Corporate Debtor as a "going concern" and has conducted nine meetings of the CoCs and the efforts have also been made to notify the Resolution Plans. Two Resolution Applicants have filed Resolution Plans which the Resolution Professional wanted to place in the meeting of the CoCs and the Resolution Applicants were invited to present their Plans before the CoCs. But, the CoCs refused to allow the Resolution Applicants to present the Plans for the reasons best known to them. 5. The Resolution Professional has submitted that the Information Memorandum is the dynamic document and it can be modified and amended from time to time whenever any changes i.e. any addition and deletion occurred in the assets or business of the Corporate Debtor or any termination of existing contracts by the customers. The Resolution Professional has contended that the Expression of Interest (EoI) was duly published after approval of the CoC members and in response to the said "EoI", three prospective Resolution Applicants have expressed their interest and sought for to access the Information Memorandum and two of them have submitted the Resolution....
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....ns, which shows that paragraph 19 of the Application is completely contradictory to paragraphs 20 and 21 and exposes the Applicants/CoCs that they have prevented the Resolution Professional for placing the Resolution Plan before CoCs for being discussed. 9. The Resolution Professional has submitted that he has not exceeded his powers or violated any provisions of I&B Code, 2016. It has further been stated in the reply that the delay in drafting the minutes of the CoCs meeting is in no way prejudices the CIR Process as the same is only directory in nature. 10. It is worthwhile to mention that the business of the Corporate Debtor is mainly based on the exclusive contractual arrangement (bottling operations) with PepsiCo India Holding Private Limited. But, M/s. PepsiCo has terminated the said contract in an arbitrary manner and without any valid cause during the CIRP period in violation of the contractual terms and the provisions contained in the I&B Code, 2016. The said action of M/s. PepsiCo has not been challenged at any stage and the same caused the Corporate Debtor to run high and dry without any business to do on its own. Consequently, the Corporate Debtor suffered a huge ....
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.... the non-compliance of the requirements specified therein, it shall - (i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter; (ii) issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered. (2) Where the resolution professional, at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). (3) Where the resolution plan approved by the Adjudicating Authority is contravened by the concerned corporate debtor, any person other than the corporate debtor, whose interests are prejudicially affected by such contravention, may make an application to the Adjudicating Authority for a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). (4) On....
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....led that originally, ICICI Bank Ltd., 3rd Applicant had filed an Application under Section 7 of the I&B Code, 2016 r/w Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against the Corporate Debtor viz., M/s. Oceanic Tropical Fruits Private Limited, claiming the outstanding debt to the tune of Rs. 1,00,94,30,499/-. 16. The Application has been admitted on 13.09.2017 and the CIRP was initiated, moratorium was declared and IRP was appointed. The initial CIRP's period of 180 days got expired on the 1st week of March, 2018. This Authority has given the extension on 02.03.2018 for a period of 90 days i.e. up to the 1st week of June, 2018. However, the period of 98 days was not utilized due to the disagreement among the CoCs with regard to the appointment of Resolution Professional with requisite voting share due to which delay for a period of 89 days got caused in making the appointment of Resolution Professional. Therefore, vide Order dated 07.06.2018, the period of 98 days was subtracted from 270 days by granting extension of 90 days with the direction to the Resolution Professional to complete the CIR Process before the expiry of the time ....