TaxTMI 
TaxTMI 
2022 (3) TMI 814
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....ncy and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 had been filed by Spectrum Artcomm Private Limited, a corporate entity, through its Director namely Mr. Mridul Kotriwala, duly authorised vide Resolution dated 5th December, 2019 (Annexure-3) (hereinafter referred as the Operational Creditor), seeking initiation of corporate insolvency resolution process in respect of New Town Grand, Realtors LLP, having its registered office at Infinity Benchmark, 6th Floor, Office No. 8 PLGI Block-EP & GP, Sec-V, Salt Lake, Kolkata-700091, (hereinafter referred as the Corporate Debtor). 3. In this petition vide order dated 31.10.2019, this Adjudicating Authority had initiated CIRP against the New Town Grand Realtors LLP, the Corpora....
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....s at their residential address taken from the MCA data had also been returned unserved. Thereafter, the IRP filed an application under Section 19(2) of the Code twice, firstly on 16.06.2020 and subsequently on 11.10.2020 when the e-filing portal come into existence. He mentioned the matter for urgent hearing also and matter was heard time and again, however, suspended board did not appear again before the NCLT. The IRP had requested the applicant-Operational Creditor to submit its claim but no claim was received till the date of filing this application. Therefore, no CoC could be formed. 6. It is submitted that since the Corporate Debtor is an LLP, unaudited financial statement is available on MCA portal. However, there is no list of deb....
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....solvency Resolution Process for Corporate Persons) Regulations, 2016, which reads as follows:- "33. Costs of the interim resolution professional:- (1) The applicant shall fix the expenses to be incurred on or by the interim resolution professional. (2) The Adjudicating Authority shall fix expenses where the applicant has not fixed expenses under sub-regulation (1). (3) The applicant shall bear the expenses which shall be reimbursed by the committee to the extent it ratifies. (4) The amount of expenses ratified by the committee shall be treated as insolvency resolution process costs. [Explanation.- For the purposes of this regulation, "expenses" include the fee to be paid to the interim resolution....
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....C. 18. We observe that even if the ETO Bahadurgarh has withdrawn its claim, the CoC have functioned with the Sole Member/Operational Creditor, at whose instance the CIRP was initiated. However, in the present case we notice that even the Sole Member/Operational Creditor of the CoC has been shirking from the responsibility and not pursuing the CIR Process of the Corporate Debtor. 19. In the case the Sole Member/Operational Creditor of the CoC was not interested in pursuing the CIR Process, the appropriate course could have been to file a withdrawal application, under section 12A of IBC, 2016. The contents of the Section 12A are reproduced below: "12A. Withdrawal of application admitted under Section 7, 9 or 10 ....
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.... of the National Company Law Tribunal Rules, 2016 on M/s. Om Logistics Ltd. through its Directors giving them fifteen days' time to explain and submit in writing as to why the penalty as stipulated under Section 65(1) of IBC, 2016 shall not be imposed on them. The Registry is directed to allot a case No. for the proceedings for which the Show Cause is being issued to the Operational Creditor under Section 65(1) of IBC, 2016. Registry/Court Officer to list this matter on 01.09.2021." 21. Now, coming to the prayer of the Applicant, we are of the view that it is not the duty of the IRP to run after the Members of CoC to attend the meeting and pursue the CIR Process. In a similar situation, when the CoC was not interested in pursui....
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....n Professional, but has also wasted the time of this Bench after the Petition was duly admitted. Accordingly, while terminating the CIR Process, a cost of Rs. 50,000/- is imposed on the Operational Creditor to be paid to the Prime Minister's Relief...." 22. In the Circumstances, when the Applicant is unable to carry forward the CIR Process for want of cooperation/participation from the sole member of CoC, we feel it appropriate to terminate the CIR Process of the Corporate Debtor. In view of the above, by exercising our jurisdiction under Section 60(5) of IBC 2016 along with inherent power under Rule 11 of the NCLT Rules, 2016, we hereby terminate the CIR Process of the Corporate Debtor with immediate effect and release the Cor....