2021 (8) TMI 1109

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....kadhara Ventures Private Limited. 2. The facts in brief are that the IDBI Bank limited, the Financial Creditor had filed an application under Section 7 of the Code bearing CP (IE) No. 745/7/HDB/2018 for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor. The said application was admitted by this Tribunal on 22/11/2019 and appointed Shri B Naga Bhushan, the applicant herein as Interim Resolution Professional. 3. The applicant received and collated the claims and after verification of the claims, he constituted the Committee of Creditors (hereinafter referred as CoC) on 16/12/2019 in compliance of provisions of Section 18 of the Code. In the second meeting of CoC which held on 07/01/2020, they exercised t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..../2020 and subsequently the said Applicant in consortium with Mr. M Vishwanath submitted Resolution Plan along with Bid Bond Guarantee. 9. In 10th, 11th and 12th CoC meetings the members and the PRAs discussed about the improvement of the Resolution Plan amount and also for the commercial considerations. The Resolution Applicants insisted for release of collateral properties of the third parties and also the personal guarantees of the director/promoters for improving their resolution plan amounts. The CoC members made it clear that as per the CIRP regulations the PRA is allowed to bid only for the Corporate Debtor and the Banking regulations do not allow the Financial Creditors to relinquish their right on the Personal guarantees. 10. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ated 15.06.2021 to withdraw his consent to act as a Liquidator of the Corporate Debtor. The consent of Mr. Rajesh Chillale for acting as the said liquidator is annexed with the memo dated 15.06.2021 as ANNEXURE - C. 16. We have heard the Applicant in the matter. The Hon'ble Apes Court in K. Sashidhar vs. Indian Overseas Bank and Ors. (2019) 148 LA 497 (SC) inter-alia held that, "The Adjudicating Authority (NCLT) is not expected to do anything more; but is obligated to initiate liquidation process under Section 33(1) of I & B Code. The legislature has not endowed the adjudicating authority (NCLT) with the jurisdiction or authority to analyse or evaluate the commercial decision of the CoC much less to enquire into the justness....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ator. f) All powers of the Board of Directors, Key Managerial Personnel and partners of the Corporate Debtor shall cease to have effect and shall be vested in the Liquidator. g) The Liquidator shall exercise the powers and perform duties as envisaged under Sections 35 to 50 and 52 to 54 of the Code, read with Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016. h) Personnel connected with the Corporate Debtor shall extend all assistance and co-operation to the Liquidator as would be required for managing its affairs. i) The Liquidator shall be entitled to such fees as may be specified by the Board in terms of Section 34(8) of the Code. ============= Document 1 Sl No. ....