TMI Blog2023 (11) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 33 (2) of the Code. Having regard to the fact that the CIRP period of 270 days was over and the CoC had voted in favour of Liquidation of the Corporate Debtor Company with a 100 % majority, there are no substantial reasons in the argument of the Learned Counsel for the Appellant that their Plan ought to have been considered. The material on record establishes that Section 33 (1) (a) (i) and Section 33 (2) of the Code have been satisfied, IBC is a time bound process and the commercial wisdom of the CoC is to be given paramount importance for approval/rejection of a Resolution Plan. The Hon ble Supreme Court in a catena of Judgments namely, KALPRAJ DHARAMSHI ANR. VERSUS KOTAK INVESTMENT ADVISORS LTD. ANR. [ 2021 (3) TMI 496 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 016 (hereinafter referred to as the Code ). 2. By the Impugned Order, the Adjudicating Authority has allowed the Application filed by the Resolution Professional ( RP ) of the Corporate Debtor Company seeking direction to liquidate the Corporate Debtor and to appoint the Applicant as the Liquidator to administer the Liquidation Process. It is noted by the Adjudicating Authority that the CoC in its commercial wisdom, approved the Liquidation of the Corporate Debtor, with a 100 % majority. In view of the fact that the CIRP Period of 270 days was concluded on 28/08/2020, the Adjudicating Authority thought it fit to allow the Application. 3. The Learned Counsel for the Appellant submitted that the Corporate Debtor Company was affected by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he e-voting of the two Resolution Applicants. It is contended that the RP ought to have taken adequate steps for recovering the Applicant s huge receivables but instead did not make any effort to revive the Company and went ahead to file an Application for Liquidation. In the 11th CoC Meeting, it was deliberated and also recorded in item 7.2 that all the CoC Members discussed in detail and decided to explore the possibility of Compromise or Arrangement before passing any Liquidation Order, but the RP did not take any steps in this direction. It is strenuously argued by the Learned Counsel for the Appellant that prior to ordering Liquidation, the Resolution Plan of the Appellant ought to have been considered by the CoC and all possibilitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lution Process for Corporate Persons) Regulations, 2016. Section 33 which deals with Initiation of liquidation reads as under :- Section 33. - Initiation of liquidation (1) Where the Adjudicating Authority - (a) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast-track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan under sub-section (6) of section 30; or (b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, it shall- (i) pass an order requiring the corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). (4) On receipt of an application under sub-section (3), if the Adjudicating Authority determines that the corporate debtor has contravened the provisions of the resolution plan, it shall pass a 1iquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section(1). (5) Subject to section 52, when a liquidation order has been passed, no suit or other legal proceeding shall be instituted by or against the corporate debtor: Provided that a suit or other legal proceeding may be instituted by the liquidator, on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority. (6) The provisions of sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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