TaxTMI 
TaxTMI 
2019 (1) TMI 1786
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....ruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP process as against the Corporate Debtor, Powercon Projects & Association Limited. 2. Vide Order dated 10-07-2018, the Application was admitted and Mr. Anand Chandra Swain has been appointed as Interim Resolution Professional. 3. This is an unusual case in which Interim Resolution professional (IRP) appointment was not confirmed by the CoC consisting of sole financial creditor who is none other than the State Bank of India. The SBI seems to have not taken care in continuing the process by confirming the appointment of IRP for exploring any possibility of resolution as per the objective of the Code and reluctant to fix the remuneration of IRP and approve the reso....
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....ed by IRP (v) To ratify the remuneration payable to IRP (vi) To appoint Resolution Professional either IRP or other insolvency professional as the case may be. (vii) To discuss such other matters with the permission of majority of members of the Committee of Creditors as maybe deemed necessary for smooth functioning of corporate insolvency resolution process. 7. The Ld. IRP has filed the final progress report on 16-08-2018.Dissatisfied with the said report, vide Order dated 08-10-2018, the IRP was directed to call for meeting of the Committee of Creditors so as to explore the possibility of finding out a Resolution Applicant, if it is possible before the expiry of period of 180 days' of CIRP period. The CIRP period of 180 days wa....
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.... the instance of the Operational Creditor. Upon the aforesaid circumstances, the IRP prays for passing an order of liquidation. 10. At this juncture, the Ld. Counsel for the Operational Creditor has submitted that he has rendered a cost to the tune of Rs. 2.5 lacs as the resolution cost inclusive of the fees of the IRP and that Rs. 2.5 lacs is to be reimbursed to the Operational Creditor who is the Applicant herein got an order of admission to initiate CIRP as against the Corporate Debtor. 11. Heard the Ld. IRP, the Ld. Counsel appearing for the SBI, the CoC, the Ld. Counsel appearing for the Applicant in CA(IB) No. 1183/KB/2018 and the ld. Counsel appearing for the Operational creditor. 12. As stated earlier, this is an unusual case. Th....
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.... to bear the expenses. From the report submitted by the IRP and upon hearing the argument advanced on the side of the SBI, it is understood that the Corporate Debtor has stopped its operation and not doing any business since last 4/5 years before the date of initiation of the CIRP and has no asset at all. 15. The Secured Creditor, who is none other than the SBI has already filed winding up Petition before the Hon'ble High Court, Orissa. However, it is submitted on the side of the SBI that that Petition was not admitted and publication was not at all ordered. Therefore, there is no bar in proceeding further with the CIRP process in the case in hand. As the Committee of Creditors and the IRP failed in obtaining a Resolution Plan, under s....
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....onal Creditor upon production of proof to prove that the expenses found spent by the IRP has been spent by the Operational Creditor. Upon satisfaction of SBI, the Financial Creditor the fees and expenses rendered by the IRP shall be fixed and upon proof of expenditure and payment of fees to the IRP, the CoC shall pay to the Operational Creditor within one month of the date of this order. Failing which the operational creditor can take appropriate steps to realise the cost and fees actually spent by it. 17. Ld counsel for the Financial Creditor, whose claim was rejected submits that the IRP rejected its claim wrongly and made a request to extend the period of CIRP beyond 180 days for enabling the financial creditor to bring in a resolution ....
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....orate debtor is situated as per Section 33(1) (b) (ii) of the Code, read with Reg. 12 (1), of IBBI (Liquidation Process) Regulations, 2016. (iv) The Registry is directed to communicate this order to the Registrar of Companies, West Bengal and to the Insolvency and Bankruptcy Board of India (IBBI), New Delhi. (v) The Order of Moratorium passed under Section 14 of the I&B Code, 2016, shall cease to have effects and a fresh moratorium under Section 33 (5) shall commence. (vi) This order is deemed to be a notice of discharge to the officers, employees and the workmen of the Corporate Debtor as per Section 33 (7) of I&B Code, 2016. (vii) The Liquidator is directed to proceed with the process of liquidation in a manner laid down in Chapte....