TMI Blog2019 (3) TMI 1651X X X X Extracts X X X X X X X X Extracts X X X X ..... tted - moratorium declared. - MA 1096/ 2019 IN CP (IB) NO. 1319 (MB)/ 2017 - - - Dated:- 27-3-2019 - V.P. SINGH, JUDICIAL MEMBER AND RAVIKUMAR DURAISAMY, TECHNICAL MEMBER For the Appellant : Dharmesh J Shah For the Respondent : Ms. Supriya Majumdar ORDER V.P. Singh, Judicial Member and Ravikumar Duraisamy, Technical Member. MA 1096/2019 has been filed by the Resolution Professional under section 33 of IBC, 2016 for the liquidation of the Corporate Debtor, on the basis of approval of the CoC during corporate insolvency resolution process. 2. It is stated in the application that the applicant is the Resolution professional appointed to conduct the CIRP of the Corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties would be paid nearly about 1% of their respective outstanding. The Committee reviewed the resolution plan and at the foremost asked for the Earnest Money Deposit, on which the representative of the Resolution Applicant admitted that they were not clear as to when the same and how much was to be paid. The Committee further explained to the representative that in case you are the successful bidder and his Resolution Plan is accepted by the CoC, he will be required to provide a performance security for the amount equal to 15% of the total offer amount as stated in the resolution plan, either by way of Pay Order or Demand Draft or NEFT or RTGS. Further, that performance security shall be required to be paid instantly on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial creditors to record reasons for disapproving or rejecting a resolution plan. Further, as aforementioned, there is no provision in the I B Code which empowers the adjudicating authority (NCLT) to oversee the justness of the approach of the dissenting financial creditors in rejecting the proposed resolution plan or to engage in judicial review thereof. Concededly, the inquiry by the resolution professional precedes the consideration of the resolution plan by the CoC. The resolution professional is not required to express his opinion on matters within the domain of the financial creditor(s), to approve or reject the resolution plan, under Section 30(4) of the I B Code. At best, the Adjudicating Authority (NCLT) may cause an enquiry i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the financial creditors are not open to any judicial review by the adjudicating authority or the appellate authority. 8. In this case, CoC in its 10th meeting rejected the resolution plan submitted by Jyotiba Developers with 100% vote share and recommended for the liquidation of the Corporate Debtor as a going concern. 9. The Applicant has further made a prayer that Mr. Rajat Mukherjee be appointed as Liquidator and submitted that the consent of Mr. Rajat Mukherjee has also been obtained. It is pertinent to mention that CoC in its last meeting dated 8.3.2019 has considered the proposal for appointment of Insolvency Professional to act as the Liquidator. It is stated in the minutes that Resolved that in view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances, we at this moment allow MA 1096/2019 and pass the order of liquidation under Section 33 of IBC as follows: a. That the Corporate Debtor is liquidated in the manner as laid down in the Chapter by issuing a Public Notice stating that the Corporate Debtor is in liquidation with a direction to the Liquidator to send this order to RoC under which this Company has been registered. b. As to the appointment of Liquidator, Mr. Rajat Mukherjee is at this moment directed to act as a Liquidator for the liquidation of Corporate Debtor company with all powers as envisaged in the Code. c. On such appointment under Section 34 of the Code, all powers of the Board of Directors, key managerial personnel and the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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