2019 (12) TMI 1524

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....ing an order for liquidation of Corporate Debtor under section 33(2) of I & B code, 2016. 2. It is stated that the present Corporate Debtor was admitted for commencement of CIRP vide Order dated 14.02.2019. 3. It is stated that, this Adjudicating Authority appointed Mr.Subba Rao Gonuguntla, an Insolvency Professional registered with IBBI with registration number IBBI/IPA-001/IP-P01277/ 18-19/11959, as IRP vide order dated 14.02.2019. 4. It is submitted that, in the 1st COC meeting held on 09.03.2019, Mr.Subba Rao Gonuguntla was appointed as Resolution Professional who is the existing RP. 5. It is stated that, during the CIRP period totally four COC meetings were held on (1) 15.04.2019, (2) 23.07.2019, (3) 02.08.2019 and (4) 11.08.2019. ....

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....s Suspended Director has failed to keep his promise, hence CoC resolved for liquidation of the Corporate Debtor. 11. Counsel for the Respondent filed counter wherein: a) It is stated that he is a first generation entrepreneur and as such intends to establish a company in the field of all kinds of clinical research. b) It is stated that the outstanding liability claimed by the Operational Creditor is exorbitant and simply adding the interest, rents etc., even after expiry of the product of the Corporate Debtor. If the Corporate Debtor Company goes for liquidation process there are no assets in the name of the Corporate Debtor. c) It is stated that the Respondent is a first generation entrepreneur in the field of clinical research, hav....

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....g the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors 2 [approved by not less than sixty-six percent. of the voting share] to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). [Explanation. - For the purpose of this sub-section, it is hereby declared that the committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution under sub-section (l) of section 21 and before the confirmation of the resolution plan, including at any time before the preparation ....

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....other legal proceedings may be instituted by the Liquidator, on behalf of the Corporate Debtor, with the prior approval of this Adjudicating Authority. (v) We make it clear that para (iv) hereinabove shall not apply to legal proceedings in relation to such transactions as notified by the Central Government in consultation with any financial sector regulator. (vi) This Order shall be deemed to be a notice of discharge to the officers, employees and workmen of the Corporate Debtor, except when the business of the Corporate Debtor is continued during the Liquidation process by the Liquidator. (vii) All the powers of the Board of Directors, Key Managerial Personnel and the Partners of the Corporate Debtor, as the case may be, shall cease ....