TaxTMI 
TaxTMI 
2020 (5) TMI 5
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed on 8-1-2019 inviting Expression Of Interest (EOI) and interest was received from one applicant namely Prudent ARC Limited, but no resolution plan was received by the Resolution Professional till the last date i.e. 9-3-2019. A fresh Form G is stated to have been published on 7-3-2019 and another Form G was again published on 25-6-2019. The last date for submission of the Expression of Interest (EOI) in the last Form G was given as 5-7-2019. It is submitted that no resolution plan has been received by the Resolution Professional. 3. It is stated that vide order dated 2-5-2019, extension of the CIRP period by another 90 days was allowed and the CIRP period has expired on 26-7-2019. 4. The Resolution Professional filed an application (C.A.No.539/2019) under section 60(5) of the code, before this tribunal for seeking exclusion of time consumed in litigation and the same was dismissed. 5. The CoC in its 6th meeting dated 4-9-2019, considered that no resolution plan was received during the CIRP of 270 days despite invitation of EOI issued thrice and observed that the process cannot be withheld much longer. The CoC thereupon resolved that after the dismissal of exclusion of time appl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered." 12. In the present case, the CIRP period is stated to have been expired on 26-7-2019 and no resolution plan under section 30 (6) of the Code was received by the Adjudicating Authority before that date. In fact, an application is received from the RP for liquidation of the corporate debtor, since despite invitation for EOI being issued thrice, no resolution plan was received. Therefore, the order is being passed requiring the corporate debtor to be liquidated in the manner as laid down in Chapter III of the Code and the directions for issue of public announcement stating that the corporate deb....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... best estimate of the value of the liquid assets available to meet the liquidation costs, as estimated in sub-regulation (1). (3) Where the estimated value of the liquid assets under sub-regulation (2) is less than the estimated liquidation 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 to liquidate the corporate debtor under section 33, the committee may recommend that the liquidator may first explore sale of the corporate debtor as a going concern under clause (e) of regulation 32 of the Insolvency ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....available to meet the liquidation costs. 20. In the circumstances and in view of the compliances made, the Bench is satisfied that the Corporate Debtor Company is required to be liquidated and accordingly, it is ordered that the Corporate Debtor shall be liquidated. 21. It is directed that all the directions/requirements and provisions of Chapter III of the Code and Liquidation Process Regulations, 2016 shall be strictly complied with. Some of the directions are as under: (i) That as per section 33(5) of the Code and subject to section 52 of the Code, no suit or other legal proceedings shall be instituted against the corporate debtor; Provided that a suit or other legal proceedings may be instituted by the Liquidator on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority; (ii) That the provisions of sub-section (5) of section 33 of the Code shall not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector 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, em....