2019 (1) TMI 386

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....cy and Bankruptcy Code, 2016, 2016). The prayer made (in short 'I&B Code, by the Resolution Professional inter alia is to seek an order for liquidation of the Corporate Debtor viz., M/S. Ashok Magnetics Limited and allow the Liquidator to dispose of the assets of the Corporate Debtor as a "going concern" basis. The Counsel for the COCs, who happened to be present at the time of hearing, did not raise any objection. 2. Originally, CP/551/1B/CB/2017 was filed under Section 7 of the I&B Code, 2016, by the Financial Creditors viz., the Central Bank of India and the State Bank of India against the Corporate Debtor viz., M/S. Ashok Magnetics Limited, which was admitted by this Authority vide Order dated 04.09.2017 , the Moratorium was decl....

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....th the both the Resolution Applicants including the proposed revision of their offers, the Resolution Plans submitted by the Resolution Applicants were not voted in favour due to the reasons as i. Offers given by the two Resolution Applicants were too low, considering the present banks outstanding amount, ii. Both the Resolution Applicants have not given due or appropriate Enterprise value to the running factory at Eripakkam, Pondicherru, and iii. Purely a commercial decision of the COCs. 6. It is averred that since no Resolution Plan was approved by the COCs within the maximum period of 270 days permitted under Section 12 of the Code for completion of the Corporate Insolvency Resolution Process, the recourse o....

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.... 52 of the I&B Code, 2016, no suit or other legal proceedings shall be instituted by/ or against the Corporate Debtor. However, a suit and other legal proceedings may be instituted by the Liquidator, on behalf of the Corporate Debtor, with the prior approval of this Authority. v. This Authority makes it clear that para (iv) hereinabove shall not apply to legal proceedings in relation to such transactions as notified by the Central Government in consultation with any financial sector regulator. vi This Order shall be deemed to be a notice of discharge to the officers, employees and workmen of the Corporate Debtor, except when the business of the Corporate Debtor is continued during the liquidation process by the Liquidator.....