TaxTMI 
TaxTMI 
2021 (3) TMI 872
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....tion process of the Corporate Debtor; c. That this Hon'ble Tribunal be pleased to appoint applicant as Liquidator under Section 34(1) of the Insolvency and Bankruptcy Code, 2016; d. Any other orders/directions as deemed fit and necessary by this Hon'ble Tribunal in the interest of justice and equity. 2. The counsel for the Applicant submitted that this Tribunal vide an order dated 07.08.2018 admitted the captioned company petition filed under Section 9 of the Code by Pariman Enterprises Pvt. Ltd. (hereinafter referred to as the "Operational Creditor") and Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor. One Mr. Dhananjay Kumar Vatsyayan was appointed as the Interim Resolution Professional (IRP) of the Corporate Debtor. The IRP had made public announcement under Section 13 of the Code on 13.10.2018 and later the CoC was formed on 15.11.2018. 3. During the 1st meeting of the CoC held on 05.11.2018, CoC had passed a resolution for replacement of the IRP and appointment of the applicant as the Resolution Professional (RP). Later, this Tribunal vide its Order dated 14.12.2018 passed in M.A. 1426/2018, co....
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.... suspended director to which the suspended director replied on 20.06.2019. 8. Later, 4th CoC meeting was held on 21.06.2019 at Bank of Baroda, Zonal Stressed Asset Recovery Branch, Meher Chambers, Dr. Sunderlal Behel Marg, Ballard Pier, Mumbai- 400001. The same was attended by the Financial Creditors namely Bank of Baroda representing 100% of Financial Creditors. The CoC considered the following relevant points: a. I say that the Financial Creditors present in the meeting noted the current state of Business Operations of the Corporate Debtor and the Assets of the Company. At present, there is no operation in the Corporate Debtor and the only asset with the Company is its office. The Company was engaged in trading business and hence does not have any manufacturing facility. A list of trademark certificates registered in INDIA, list of products registered in Kenya and Nigeria were provided. The said registrations remain valid upto 2018-19 and the Company is in the process of renewing the same. The value of these Product Registrations cannot be ascertained. b. The Letter dated 20.06.2019 was submitted by suspended director Mr. Dilip Muchalla which was read b....
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....e Corporate Debtor. Neither was any advertisement published for inviting the Expression of Interest nor was any attempt made to invite Resolutions plans. Thus, the CIRP was carried out in a completely bogus and improper manner thereby flouting and violating the principles of the Code. 12. The suspended director further submitted that in the 3^rd meeting of the CoC which was held on 15.03.2019, the RP had asked the CoC to consider the further course of action through preparing Information Memorandum and invitation of Expression of Interest and Resolution plan. The CoC members decided to defer this item to the next meeting of the CoC and requested for additional information on the current state of business. However, no meeting of the CoC was then held for the next 3 months. 13. He also submitted that vide an email dated 07.06.2019, the Corporate Debtor had informed their Financial Creditor that they have identified an investor who was desirous and keen to acquire the Corporate Debtor. However, since the Bank of Baroda, representing 100% of the Financial Creditors had not advised and/or invited any Expression of Interest, the investor was not able to submit a Resolut....
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.... 16. The applicant has conducted valuation of the assets of the Corporate Debtor and after doing so, has reached to a conclusion that there are no assets with the Corporate Debtor and therefore, there is no possibility of any revival. Also, the CoC upon careful assessment of the situation have decided to liquidate the company with 100% majority. We have carefully perused the record available and have reached to a conclusion that the Corporate Debtor is nonoperational for last two years and the only asset left with it is a shop at Borivali. The promoter of the Corporate Debtor had also given proposal for One Time Settlement through Asset Purchase by Asset Reconstruction Company which is not acceptable to the CoC. 17. Having considered the facts and circumstances, we believe it is a settled principle of law regarding the Commercial Wisdom of the CoC to liquidate the Corporate Debtor and we cannot interfere in the same if it is allowed with the requisite majority. Here we would like to refer to the decision of the Hon'ble Supreme Court of India in the matter of K. Sashidhar vs Indian Overseas Bank 2019 SCCOnline SC 257 wherein it was held that: "53. Significant....