TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 616
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....ereby the Adjudicating Authority allowed the Application filed by the Resolution Professional under Section 33(2) read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016 prayed the Bench to pass an order of liquidation of the Corporate Debtor namely viz. Freeworld Exports Pvt. Ltd. on the ground that the CoC in its 8th Meeting held on 08.01.2022 unanimously resolved to file an application for liquidating the Corporate Debtor. 3. The Learned Senior Counsel submitted that the Appellant is the Promoter Shareholder of the Corporate Debtor holding 50% of the equity shares in the Corporate Debtor. While so, an Application under Section 9 was filed by the Operational Creditor namely; M/s Crosby Engineering Pvt. Ltd. against the Corporate Debtor before the Adjudicating Authority on the ground that the Corporate Debtor defaulted payment due to the Operational Creditor. The Learned Adjudicating Authority admitted the Corporate Debtor into CIRP and appointed IRP. The IRP became RP in due process of law. The RP made a public announcement on 03.09.2021 inviting Expression of Interest (EOI) in Form-G. However, there is no response to the said EoI and no Resolution Plans for revival ....
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....act that CIRP was initiated against the Corporate Debtor and called Expression of Interests inviting applications from the prospective Resolution Applicants. It is submitted that the CoC was formed with the following Financial Creditors with 100% voting share namely; i) Axis Bank with admitted amount of claim is Rs.35,51,31,447.68 with 85.5% voting share. ii) The Axis Bank retail with admitted amount of claim is Rs.5,27,094.00 with 0.1% voting share. iii) The Shriram Transport Corporation Ltd. admitted claim amount is Rs.77,90,491.00 with 1.09%. voting share. iv) Reliance Commercial Finance Ltd. admitted claim amount is Rs.5,20,003.00 with 0.1% voting share. v) SREI Equipment Finance Ltd. admitted claim amount is Rs.5,13,01,750.56 with 12.4% voting share. 11. It is submitted that the total admitted claim amount of the above Financial Creditors is Rs.41,52,70,788.24 with 100% voting share. 12. The Learned Counsel submitted that since no applications from the prospective resolution applicants were received pursuant to Form-G published on 03.09.2021, the CoC in its 6th Meeting decide to re-issue Form-G to further explore the possibility of reviving the Corporate Debtor. Ac....
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....ting of the Corporate Debtor was held on 08.01.2022 wherein it was decided to submit the resolution for Liquidating the Corporate Debtor and making an application to NCLT for liquidation by the RP was put to e-voting. The e-voting was held between 10th January 2022 and 12th January 2022 12 Noon. Only one Financial Creditor voted the resolution and 3 financial creditors holding 14.36% did not vote. The resolution was approved by the members of the CoC with 85.64% voting. The above Resolution is reproduced hereunder: "RESOLVED to liquidate Freeworld Exports Private Limited under Section 33(1) and other applicable provisions of the IBC, 2016 as no resolution plan was received despite publication of "Invitation of EoI" twice in Newspapers and also the maximum period (Inclusive of exclusion and extension period) permitted for completion of the Corporate Insolvency Resolution process is Jan 09, 2022. AND RESOLVED FURTHER THAT an application be made to NCLT, Chennai to liquidate Freeworld Exports Private Limited (CIN: u51420TN2004PTC052776) and the RP Mr Tharuvai Ramchandran Ravichandran (IBBI/IPA-002/IP N00241/2017-18/10692) be and is hereby authorized to take all necessary steps and....
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....the same. The 1st Respondent in his written submission dated 05.07.2022 at para 4 (g) stated as under: "the Respondent placed the above e-mail before CoC in its 8th CoC Meeting and the CoC took note of the same. Further, the CoC opined that the terms of settlement is not acceptable as it is not commercially viable." As stated (supra) the wisdom of the CoC cannot be interfered as held by the Hon'ble Supreme Court in the matter of Vallal RCK Vs. M/s Siva Industries and Holdings Limited & Ors. dated 03.06.2022, whereby and whereunder at para 27 held as under: "27. This court has, time and again, emphasized the need for minimal judicial interference by the NCLAT and NCLT in the framework of IBC. We may refer to the recent observation of this Court made in the case of "Arun Kumar Jagatramka vs Jindal Steel and Power Limited and Another" (2021 7 SCC 474): "95.....However, we do take this opportunity to offer a note of caution for NCLT and NCLAT, functioning as the Adjudicatory Authority and Appellate Authority under the IBC respectively, from judicially interfering in the framework envisaged under the IBC. As we have noted earlier in the judgment, the IBC was introduced in order t....