2020 (9) TMI 994

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the IBC, 2016, seeking relief as follows; 1. To Consider and approve the proposal stated in the resolution passed by the Committee of Creditors for initiation of Liquidation process under section 33(2) of the IBC, 2016; and 2. To appoint the Liquidator for initiation of liquidation process for the Corporate Debtor; 2. The IA/260/IB/2020 is an application for Intervention filed by one Mr. Maruthanayagam Kathiresh (Promoter and Director of the Corporate Debtor) stating that the Resolution Professional has rejected the Expression of Interest (Eol) submitted by the Applicant without due verification of records which led to the liquidation of Corporate Debtor. In the circumstances, the applicant seeks the following reliefs: ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rs Valuation Amount 1 Fair Value Rs. 12,59,67,291/- 2 Liquidation Value Rs. 7,97,00,000/- 5. It is also evident from the records that the 2nd COC meeting held was on 15.05.2019, in which the CoC has decided to issue invitation for Expression of Interest and the invitation for EOI in Form-G was published in newspapers on 05.06.2019 for inviting prospective resolution applicants. The counsel for the Applicant/RP submitted that in the 6th CoC meeting held on 21.08.2019 extension of time to submit resolution plan from one Malbar Ispat Limited was discussed. Considering the fact that Resolution Applicant has failed to come up with a plan till date though sufficient time was given on earlier three occasions from the day of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pplication filed by Resolution Professional under section 33(2) of the IBC, 2016. It is further submitted that the main purpose of filing this Intervention Application is that window is opened for MSME Promoters as per Section 240A of the Insolvency and Bankruptcy Code, 2016 wherein it is conveyed that to safeguard interest of Promoters of MSME interested in acquiring the Corporate Debtor but hit by the provisions of Section 29A of the Code. Such promoters can be restricted only if disqualified as "wilful defaulter" from bidding. 8. It is stated that the Intervenor/Applicant (Promoter Director) has submitted the Expression of Interest (Eol) on 10.06.2019 to the Resolution Professional in response to the invitation of Eol dated 21.05.2019....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e of compromise or arrangement from the date of the order of liquidation, during which period the prospective Resolution Applicant can very well submit his Scheme under Section 230 of the Companies Act, 2013. 10. In terms of Section 240-A(l) "notwithstanding anything to the contrary contained in this Code, the provisions of Clause (c) and (h) of Section 240-A shall not apply to the Resolution Applicant in respect of CIRP of any Micro, Small and Medium Enterprises (MSME)". It is seen that in the Review Committee for "wilful defaulters" held on 12.03.2018, the sole member of CoC (Financial Creditor - Indian Overseas Bank) has declared the promoter-director as 'wilful defaulter'. The minutes of the Review Committee report enclosed w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mittee for review and confirmation as per directives contained in para 3(c) of the Master Circular of Wilful Defaulters by the RBI vide RBI/2015-16/100 DBR No.CID. BC. 22/20.16.003/2015-16 dated 01.07.2015." 11. Hence, in view of the discussions made supra, this Tribunal is of the opinion that there is no need to interfere with the decision of the CoC as communicated by the Resolution Professional and hence proceeds to consider the application made under Section 33 for liquidation of the Corporate Debtor. Therefore, IA/260/IB/2020 filed by the Promoter-Director is liable to be "dismissed". 12. Learned Counsel for the Resolution Professional submitted that as per the resolution passed by the 6th CoC approving the RP to act as a Liquida....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ms of section 178 of the Income Tax Act, 1961, the Liquidator shall give necessary intimation to the Income Tax Department. In relation to other fiscal and regulatory authorities which governs the Corporate Debtor, the Liquidator shall also duly intimate about the order of liquidation; f) The order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and that a fresh Moratorium under section 33(5) of the Insolvency and Bankruptcy Code shall commence; g) The Liquidator is directed to proceed with the process of liquidation in a manner laid down in Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016; h) The Liquidator is directed to investiga....