TaxTMI 
TaxTMI 
2021 (6) TMI 44
X X X X Extracts X X X X
X X X X Extracts X X X X
....r such other orders as this Hon'ble Tribunal deems fit and proper in the facts and circumstances of the case FACTS OF THE CASE: - 2. It is averred in the application that the Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 05.01.2018 and appointed Mr. Ravi Sankar Devarakonda as the Interim Resolution Professional (in brevity IRP). In pursuance of the said order, the IRP took over the management of the corporate debtor. 3. Thereafter, the IRP verified the claims filed by the creditors of the Corporate Debtor, the IRP constituted a Committee of Creditors (in short "COC") in relation to the Corporate Debtor. The 1st COC meeting was held on 01.02.2018, resolved to recommend the appointment of the IRP as the Resolution Professional (in short "RP") of the Corporate Debtor. 4. It is further stated that, the period of CIRP 180 days was completed on 02.10.2018. However, no resolution plan was approved in respect of the Corporate Debtor during the CIRP period. Therefore, the Resolution Professional, after discussions with the members of the COC and filed an application before this Adjudicating Authority seeking its approval for com....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot liquidated. " 8. In compliance with the Interim Order, the Liquidator took steps, as set out in detail below, in accordance with the order passed by the Hon'ble NCLAT in the case of Y. Shivram Prasad Vs. S. Dhanapal & Ors. (Order dated February 27, 2019 in Company Appeal (AT) (Insolvency) No. 224 of 2018) wherein the Hon'ble NCLAT held that, "Therefore, it is clear that during the liquidation process, step required to be taken for its revival and continuance of the 'Corporate Debtor' by protecting the 'Corporate Debtor' from its management and from a death by liquidation. Thus, the steps which are required to be taken are as follows: i. By compromise or arrangement with the creditors, or class of creditors or members or class of members in terms of Section 230 of the Companies Act, 2013. ii. On failure, the liquidator is required to take step to sell the business of the 'Corporate Debtor' as a going concern in its totality along with the employees." As per the above order (Annexure A-2), Liquidator will sell the Corporate Debtor as a going concern in its totality wherein the scheme under Section 230 of the Companies Act, 20....
X X X X Extracts X X X X
X X X X Extracts X X X X
....13 was not approved by the seventy five percent of the secured creditors (by value) but received only 50.37%. 16. The Scheme could not sail through under Section 230 of the Companies Act, in accordance with the directions by the Hon'ble NCLAT in appeal filed by the MEPL, the entire operations have been unsuccessful. The Hon'ble NCLAT, by its order dated 01.07.2019 has disposed of the appeal. Further, in its order dated 01.07.2019, the Hon'ble NCLAT has taken note of the submissions made by the counsel to the Liquidator that steps have been taken under Section 230 of the Companies, in respect of the Corporate Debtor and mat the appropriate order as to be passed by the Adjudicating Authority. 19. Based on the decision of the Hon'ble NCLAT in the matter of S.C Sekaran vs. Amit Gupta & Ors. were taken under the provisions of Section 230 of the Companies Act, 2013. It is stated that the entire exercise under Section 230 of Companies Act, 2013 have been unsuccessful. The Scheme of the appellant before Hon'ble NCLAT i.e. MEPL received only 50.37 % as against the requirement of seventy five percent of secured creditors, in meeting held on 26.2.2020. The lockdown h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ect to compromise or arrangement, in computation of the liquidation period. It also prescribes a period of only ninety days, counted from the liquidation commencement date, for the completion of the process. As Regulation 2B was introduced pursuant to the Amendment Regulations, its provisions are admittedly inapplicable to the present case. The Liquidator seeks that this Tribunal allows the exclusion of time period, as the Liquidator was unable to proceed with the liquidation process for more than one year owing to the appeal filed by MEPL before the Hon'ble NCLAT and the Scheme Process being underway. As the delay came about despite best efforts of the Liquidator, discharging his duties to maximize value for the stakeholders by obtaining a Scheme, the Liquidator prays that this Tribunal be pleased to allow the exclusion of this period in the interest of justice and equity. 25. The order of liquidation was dated 06.12.2018. Hence, as per the time frame, the liquation period is two years, the liquidation ought to be completed on or before 05.12.2020. Since the country has been under pandemic period due to covid 19 and resultant lockdown of the nation'' the time frames....