2021 (6) TMI 598

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....reinafter referred as the "Code") for issuance of directions for liquidation to Corporate Debtor, M/s. KMG ATOZ Systems Private Limited. 1. The facts are that the one of the Financial Creditor, Oriental Bank of Commerce, had filed an application under Section 7 of the Code bearing number IB-1644/(PB)/2018 for initiation of Corporate Insolvency Resolution Process (CIRP), against the Corporate Debtor. The said application was admitted by this Tribunal on 06.08.2019 initiating CIRP against the Corporate Debtor and there in, appointed Mr. Sandeep Kumar Bhatt, as the Interim Resolution Professional (IRP). 2. Further, as against the case of the RP, the Promoter-Directors Counsel has stated that the liquidation value of the Company is only R....

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....e Promoter-Directors Counsel having not stated that the CoC has not complied with the procedure in taking a decision for filing a liquidation application, this Bench cannot interfere with the decision of the CoC. Moreover, this liquidation application was filed more than one year before i.e., during Feb' 2020, but till date, it appears that these Promoter-Directors have not put in any efforts to convene the CoC meeting, therefore we are of the view that the submissions made by the Promoter-Directors do not warrant this Bench to interfere with the decision of the CoC. 7. Anyhow, it is still open to the Promoter-Directors to place the Scheme application even after the liquidation has been initiated against the Corporate Debtor. 8. T....

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....C members had requested the RP to reduce fee from Rs. 2.40 Lac to Rs. 2.00 Lac per month, till the application for liquidation is pending before the AA. RP had confirmed to take the fee of Rs. 2.00 Lac per month and had confirmed to CoC vide mail dated 11.02.2020. iv. Resolved that at the time of voting, it was decided by the CoC that the liquidation cost shall be paid on actual basis on bills raised by the liquidator on monthly basis as company does not have any liquid asset and in case CoC feels then may ask the RP to call meeting and RP shall call meeting to estimate the liquidation cost if majority of CoC members so decide. 11. Accordingly, this application is allowed by ordering liquidation of the corporate debtor, namely M....