Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (9) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 994 - Tri - Insolvency and BankruptcyApproval of resolution passed by the Committee of Creditors for initiation of Liquidation process - appointment of Liquidator for initiation of liquidation process for the Corporate Debtor - section 33(2) of the IBC, 2016 - HELD THAT:- This Tribunal is of the view that, since the Corporate Debtor is an MSME, even if the promoters- directors have been declared as 'wilful defaulters', they can apply under the provisions of Section 230 of the Companies Act, 2013 as they are exempted from Section 29A of IBC, 2016. Even after the declaration of initiation of liquidation proceedings, the promoters- directors still have a chance to tender definite plan for taking over the company as a going concern or under the provisions of Section 230 of the Companies Act, 2013. The Regulation 2B of the IBBI (Liquidation Process) Regulations, 2016 contemplates that a period of 90 days has to be provided for completion of a Scheme of compromise or arrangement from the date of the order of liquidation, during which period the prospective Resolution Applicant can very well submit his Scheme under Section 230 of the Companies Act, 2013 - In terms of Section 240-A(l) "notwithstanding anything to the contrary contained in this Code, the provisions of Clause (c) and (h) of Section 240-A shall not apply to the Resolution Applicant in respect of CIRP of any Micro, Small and Medium Enterprises (MSME)". It is seen that in the Review Committee for "wilful defaulters" held on 12.03.2018, the sole member of CoC (Financial Creditor - Indian Overseas Bank) has declared the promoter-director as 'wilful defaulter'. This Tribunal is of the opinion that there is no need to interfere with the decision of the CoC as communicated by the Resolution Professional and hence proceeds to consider the application made under Section 33 for liquidation of the Corporate Debtor. Therefore, application filed by the Promoter-Director is liable to be "dismissed". Application filed by the Promoter Director stands dismissed - application filed for initiation of Liquidation process of the Corporate Debtor is hereby allowed.
|