2019 (7) TMI 1628

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....y the erstwhile Directors viz., Mr. P.V. Krishnaprasad and Mr. Sumana of the Corporate Debtor under Section 60(5) of I&B Code, 2016 to exempt entire CIR Process period of the Corporate Debtor and to direct the IRP to make fresh public announcements in the State of Karnataka, Maharashtra, Telengana and Andhra Pradesh and thereby reconstitute the Committee of Creditors (CoC). The Counsel for the Resolution Professional has filed a reply stating therein that the depositors, as claimed by the Applicants, are not going to be benefited in any way if the entire CIR Process to be exempted and CIR Process is ordered to be recommenced. It is stated by the Counsel for the Resolution Professional that any extension of further time period will only demo....

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.... is directed to coordinate with the Director General of Police, Karnataka, Maharashtra, Andhra Pradesh and Puducherry for seeking information and claims, if any, filed with those authorities. 4. After having examined the MA/443/2019 filed by the erstwhile Directors, it appears that the suggestion that has been propounded by the erstwhile Directors to exempt the entire CIR Process period for recommencing the CIR Process and to have public announcement afresh is without any base. The Resolution Professional after seeking the order of liquidation of the Corporate Debtor viz., M/s. Thiripura Chits Private Limited is competent to make recoveries from the borrowers, as suggested by the suspended Directors. Therefore, MA/443/2019 stands rejecte....

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....im Resolution Professional (IRP) on 26.09.2018, who was later confirmed as Resolution Professional by the Committee of Creditors (CoC) on 26.10.2018. 9. It is averred that vide Order of the Authority dated 26.09.2018, the IRP was supposed to take over the management of the Corporate Debtor and had issued the Newspaper Publication dated 01.10.2018 in two edition one in English and another in vernacular as per Regulation 6(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, inviting the claims from the creditors. After verification of the claims received, the IRP constituted CoC. 10. It is further averred that when the Resolution Professional had visited the registe....

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....ormation Memorandum in accordance with the I&B Code, 2016 r/w relevant Regulations. It is further averred that in the instant case, more than 80,000 deposit holders' interest is involved, out of which many deposit holders not even know how to submit their claim. Under such circumstance, the Resolution Professional was not able to identify the suspected transactions involving the Corporate Debtor, if any, which may be preferential, undervalued, extortionate credit and/or fraudulent, as mandated under Sections 25(j), 43 to 51 and 66 of the Code. Further, the promoters and Directors are also facing criminal prosecution for the default, in making payment to the deposit holders. 13. It is stated that the Resolution Professional met Mr. Kr....

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....o pass Liquidation Order as follows: - I. This Authority hereby orders for liquidation of the Corporate Debtor viz., M/s. Thiripura Chits Private Limited, which shall be conducted in the manner as laid down in Chapter III of part II of the I&B Code, 2016; II. This Authority appoints the Resolution Professional viz., Mr. J. Manivannan, as Company Liquidator, who shall issue a public announcement stating therein that the Corporate Debtor is in liquidation; III. The moratorium declared under Section 14 of the I&B Code, 2016, shall cease to have effect from the date of the order of liquidation; IV. Subject to Section 52 of the I&B Code, 2016, no suit or other legal proceedings shall be instituted by/or agains....