2020 (9) TMI 305

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....cate for R-2 JUDGMENT BANSI LAL BHAT, J. Both the appeals arise out of the Corporate Insolvency Resolution Process initiated by the Financial Creditor viz. 'Maximus Asset Reconstruction Company Limited' against the Corporate Debtor viz. 'M/s Krishna Industrial Corporation Limited' pursuant to passing of order of admission in application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the I&B Code). Same are proposed to be disposed of by a common judgment as impugned orders in both appeals dated 27th July, 2020 passed separately are interwoven and interconnected. 2. For better comprehension of the issue involved, we firstly deal with Company Appeal (AT) (Insolvency) No. 751 of 2020. Mr. S. ....

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.... in terms of impugned order. The Adjudicating Authority, taking note of the fact that the Committee of Creditors had unanimously decided to liquidate the Corporate Debtor as no Expression of Interest was received even after extension of time coupled with the fact that the outlook for the industry was negative, passed the liquidation order impugned in Company Appeal (AT) (Insolvency) No. 751 of 2020. 3. After hearing learned counsel for the parties in both the appeals in respect to both impugned orders of same date, we are of the considered opinion that the Expression of Interest floated by the Resolution Professional having not evoked response from any viable prospective Resolution Applicant even within the extended period and there bein....

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....me prior to preparation of the information memorandum. Primacy in this regard lies with the Committee of Creditors who can even recall its recommendation for confirmation of Resolution Plan already approved by the Committee of Creditors but, undoubtedly, before confirmation of resolution plan by the Adjudicating Authority. The law as enshrined in Section 33(2) only enjoins upon the Resolution Professional to intimate the Adjudicating Authority that the Committee of Creditors has, by requisite majority, decided to liquidate the Corporate Debtor, provided the Resolution Plan earlier approved by the Committee of Creditors has not been confirmed by the Adjudicating Authority. Thus, it is manifestly clear that even after recommending a Resolutio....