2019 (12) TMI 1524

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....8 is filed by Resolution Professional seeking 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, (....

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....e Corporate Debtor requested some more time to give his commitment of down payment to the proposal. As 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 De....

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....30. 14. Further Section 33(2) as amended by the IBC Amendment Act, 2019, stipulates as under: Where the resolution professional, at any time during 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, ....

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....e order of Liquidation; (iv) Subject to Section 52 of the I&B Code, 2016, no suit or other legal proceedings shall be instituted by/ or against the Corporate Debtor. However, a suit and 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 ....