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2019 (9) TMI 1463 - NATIONAL COMPANY LAW TRIBUNAL , NEW DELHI BENCHLiquidation of Corporate Debtor - Section 33 read with Section 34 of Insolvency & Bankruptcy Code (IBC) 2016 - HELD THAT:- Attempt have been made by the COC for resolution of insolvency first by reducing the net worth criteria as well as by giving opportunity to the promoter of the CD, being the resolution applicants to provide a better Resolution Plan to prevent the company from going into liquidation but despite best efforts of the COC, no resolution plan submitted by the resolution applicants was meeting their expectations as against the amount claimed by the creditors payment was only to the extent of 15.24% in relation to cash component and 8.27% by allotment of Equity share component in the Resolution Plan. It is pertinent to note that total amount claimed in relation to financial creditors, be it secured or unsecured as well as operational creditors including government and workmen and employees dues aggregates to a sum of ₹ 5175.63 lacs against which the admitted claim is to the extent of ₹ 5152.61 lacs, whereas the resolution plan provided only for 794.92 lacs in cash component and ₹ 426.21 lacs in Equity shares component expressed in value terms. The hair cut which was required to be suffered by the respective members of the COC is purely a commercial decision of the members of the COC and taking into consideration the overall interest including the commercial one, if a decision has been arrived at by the COC after making considerable efforts as is evident from the facts which have had transpired during the CIRP of the Corporate Debtor for resolution and by the rejection of the resolution plan the Creditor have thereby hurtled the CD to liquidation cannot be faulted. In view of the expiry of the period CIRP has contemplated under the provisions of IBC and as the resolution plan had also been rejected by the COC by overwhelming majority of more than 84%, this tribunal taking into consideration the provisions of Sec. 33 of IBC is perforce required to initiate the liquidation process in relation to the CD. The Corporate Debtor is allowed to be liquidated - application disposed off.
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