TaxTMI 
TaxTMI 
2022 (9) TMI 441
X X X X Extracts X X X X
X X X X Extracts X X X X
....d under Section 33(2) of the IBC in IA No.5289(ND)/2020 in CP (IB) No.979 (ND) of 2019. The Adjudicating Authority while allowing the petition filed by Resolution Professional namely Mr. Mahesh Bansal ordered for initiation of liquidation proceeding against the Corporate Debtor i.e. Gupta Marriage Halls Pvt Ltd. The operative portion is in para 9 of the impugned order which runs as follows:- "ORDER 9. In view of the facts and circumstances, this Authority is satisfied that the Application IA/5289(ND}/2020 filed for initiation of Liquidation proceedings against the Corporate Debtor is a fit case for ordering liquidation of the Corporate Debtor namely, M/s. Gupta Marriage Halls Private Limited in the manner laid down in the Chapter Il of Part lI of 1BC, 2016 and is allowed with the directions as follows: - I. This Authority appoints the Insolvency Professional Mr. Nitin Narang whose name appears in the list of the Insolvency Professionals provided by the BBI to NCLT Delhi, having Registration number: 1BB/IPA-002/1P NO0828/2019-2020/12629 E-mail ID: [email protected] II. The Resolution Professional viz., Mr. Mahesh Bansal is discharged as he has not given consent and....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a fresh Moratorium under Section 33(5) of IBC, 2016 shall commence. X. The Liquidator is directed to proceed with the process of liquidation in the manner laid down in Chapter lI of Part of the Insolvency and Bankruptcy Code, 2016 and in accordance with the relevant regulations. XI. The Liquidator shall follow up and investigate the financial affairs of the corporate debtor in accordance with provisions of Section 35 () of the Code. XlI. The Liquidator shall also follow up the pending applications for its disposal during the process of liquidation including initiation of steps for recovery of dues of the Corporate Debtor as per law. XIII. The Liquidator shall submit a Preliminary Report to the Adjudicating Authority within seventy-five days from the liquidation commencement date as per Regulation 13 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016. XIV. Copy of this Order shall be sent by the Counsel and erstwhile RP to the financial creditor, corporate debtor, and the Liquidator for taking necessary steps." On perusal of record certain important facts have been emerged which need to be incorporated herein. Earlier prior to the impugned order on ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sort. However, the RP without exhausting all the remedies hurriedly approached the Adjudicating Authority with a plea to initiate liquidation proceeding. He further submits that the Adjudicating Authority has also committed error in admitting the same. It has been reiterated by the Learned Counsel for the Appellant that the Resolution Professional/Respondent has not at all taken any sincere efforts for obtaining appropriate resolution plan and without approval of resolution plan in arbitrary manner the RP has approached the Adjudicating Authority for initiating liquidation proceeding and the Adjudicating Authority has also committed same error and admitted the same. It has further been argued by the Learned Counsel for the Appellant that the RP during CIRP had never given any opportunity to the Appellant for revival of the Corporate Debtor. Learned Counsel appearing on behalf of Respondent supporting the impugned order submits that the impugned order itself reflects that the Appellant never render any assistance to the RP. He submits that despite the repeated requests made by the RP, the appellants were not providing any information to the RP and this was the reason that RP was co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Bank (hereinafter referred as "Financial Creditor) against the Corporate Debtor viz., M/s. Gupta Marriage Halls Private Limited (hereinafter referred as "Corporate Debtor) under Section 7 of BC, 2016 R/w Rule 4 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016) to initiate Corporate Insolvency Resolution Process (hereinafter referred as "CIRP"),declare moratorium and appoint Interim Resolution Professional (hereinafter referred as "IRP"). This Adjudicating Authority vide Order dated 03.09.2019, admitted the Application, initiated the CIRP against the Corporate Debtor and appointed one Mr. Mahesh Bansal as the IRP. 3. It is averred that pursuant to the Order of this Authority which was received by the IRP on 23.10.2019. The 1s meeting of the Committee of Creditors (hereinafter referred as "CoC") was held on 22.11.2019 wherein, it was resolved to appoint IRP namely, Mr. Mahesh Bansal as the Resolution Professional. 4. The 2nd CoC Meeting was convened on 27.12.2019 wherein the approval for publication and eligibility criteria for FORM-G was settled. The FORM -G was published on 28.12.2019 in two newspapers namely "Jansatta" (Hindi) and "Financial Exp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ting was convened on 02.11.2020 wherein the Financial Creditor voted against the resolution for publishing Form-G with RFRP, eligibility criteria, Evaluation Matrix etc., remaining unchanged and to authorise the Applicant to file an application for exclusion/extension of 60 days from the CIRP period. The other resolution that was passed by the member of the CoC with 100% voting share to liquidate the Corporate Debtor is as under: "RESOLVED THAT, since no resolution plans were received, CoC hereby recommends that the Corporate Debtor should be liquidated u/s 33 of lBC,2016 and RP be and is hereby authorised to ile an application before the Hon'ble NCLT to obtain necessary orders." 8. In compliance with Regulations 39B, 39C, 39D of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 the Applicant convened 7th CoC Meeting on 18.11.2020 wherein the CoC disapproved the fees of the liquidator proposed by the Applicant and the estimation of liquidation cost as per Regulation 398 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. It is stated that the Applicant is not willing to become liquidator of the Corporate Debtor due to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rein above shall not apply to legal proceedings in relation to such transactions as notified by Central government in consultation with any financial sector regulator. VII. This liquidation Order shall be deemed to be the notice of discharge to the officers, employees, workmen of the Corporate Debtor except to the extent of the business of the Corporate Debtor is continued during the liquidation process by the Liquidator. VIII. The Counsel and erstwhile RP are directed to communicate this Order to the Registrar of Companies, NCT of Delhi & Haryana, to the Insolvency and Bankruptcy Board of India and IT Department including Assessing IT Officer of the IT Circle for which the Liquidator shall provide the details of the address. IX. The Order of Moratorium passed under Section 14 of the IBC, 2016 shall cease to have its effect from the date of the order and that a fresh Moratorium under Section 33(5) of IBC, 2016 shall commence. X. The Liquidator is directed to proceed with the process of liquidation in the manner laid down in Chapter lI of Part of the Insolvency and Bankruptcy Code, 2016 and in accordance with the relevant regulations. XI. The Liquidator shall follow up and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2) with a prayer to liquidate Corporate Debtor, the Adjudicating Authority has no option but to pass an order for liquidation. The word "shall" in sub-section (2) has been inserted and as such on being intimated by the RP, in the present case, the COC has resolved for liquidation in terms of sub-section (2) of Section 33 and as such the Adjudicating Authority was having no option but to pass order for initiation of the liquidation proceeding. Moreover, on examination of the impugned order itself it is evident that there was complete non-cooperation by the appellants who were suspended directors of the corporate Debtor. It is further evident that COC resolution was with 100% voting for liquidation of the Corporate Debtor and as such we do not find any justification to interfere with the impugned order. To some extent we are also in agreement with the submission of the Learned Counsel for the respondent that the appellants were not entitled to pursue the present appeal claiming to be ex suspended directors of the Corporate Debtor. The status of appellant as suspended directors was available only during the period of CIRP in view of Section 17(1)b) of IBC. It would be appropriate to ....