TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 95
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..... It is stead that application under section 7 of the Code filed by Punjab National Bank for initiation of corporate insolvency resolution process (CIRP) of Rama Krishna was admitted by the Adjudicating Authority (AA) vide order dated 13.02.2019 and the applicant was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (COC) originally constituted by the IRP on 05.03.2019 and reconstituted on the basis of subsequently claims received, is stated to consist of six financial creditors and one operational creditor. The invitation for Expression of Interest (EOI) was issued on 16.04.2019 and e-mails from five parties showing interest in the resolution process were received but only one EOI was received in the prescr....
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....ode are as follows:- "33. Initiation of liquidation.- (1) Where the Adjudicating Authority, - (a) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan under sub-section (6) of Section 30; or (b) rejects the resolution plan under section 31 for 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 deb....
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....r issuance of public announcement stating that Rama Krishna is in liquidation and requiring the order of liquidation to be sent to the authority with which Rama Krishna is registered are given below. 9. Section 34(1) of the Code states that where the Adjudicating Authority passes an order of liquidation of the corporate debtor under section 33, the RP appointed for the CIRP under Chapter-II shall, subject to submission of a written consent by the RP to the Adjudicating Authority in the specified form, act as the Liquidator for the purpose of liquidation unless replaced by the Adjudicating Authority under section 34(4) of the Code. Vide Agenda Item No.11.06 of meeting of COC on 06.11.2019, the COC has passed resolution for appointment of th....
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....uidation costs under sub-regulation (1), the committee shall approve a plan providing for contribution for meeting the difference between the two. (4) The resolution professional shall submit the plan approved under sub-regulation (3) to the Adjudicating Authority while filing the approval or decision of the committee under section 30 or 33, as the case may be. Explanation.-For the purposes of this regulation, 'liquidation costs' shall have the same meaning as assigned to it in clause (s) of sub-regulation (1) of regulation (2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 39C. Assessment of sale as a going concern. (1) While approving a resolution plan under section 30 or deciding ....
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.... (e) and (f) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016; and (c) the balance period of liquidation." 11. As regards Regulation 39B of CIRP Regulations, 2016, the matter was considered by the COC in its 11th meeting (Item No. 11.10.03 to 11.10.05) and the details of the estimated liquidation cost, liquid assets having nil value and approval of plan providing for contribution for meeting the difference between the amount required to meet liquidation cost and value of liquid assets was considered and the relevant resolution was passed with 99.85% votes. Opening of designated escrow account in scheduled bank for depositing the contribution was also approved with 99.85% vote. 12. ....
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....tor regulator; (iii) That this order of liquidation under section 33 of the Code 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; (iv) That all the powers of the Board of Directors, key managerial personnel and the partners of the Corporate Debtor, as the case may be, shall cease to have effect and shall be vested in the Liquidator; and (v) That the personnel of the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as may be required by him in managing the affairs of the corporate debtor and provisions of section 19 of the Code shall appl....