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2021 (7) TMI 456 - Insolvency & Bankruptcy
Liquidation of Corporate Debtor - it is submitted by the respondent that the Corporate Debtor was not an MSME and during the pendency of the CIRP, Appellant procured the MSME Certificate without authority, copy of which has been filed in the Appeal - HELD THAT:- Although the Appellant heavily banked upon his efforts made to settle with the Operational Creditor and also with other creditors so as to bring about the withdrawal under Section 12(A) of IBC and also relied heavily on his efforts to show that the Appellant was trying to bring through a resolution plan filed by him and his resolution plan was required to be accepted, fact remains that the record does not show that Resolution Plan, as such of the Appellant, was approved by CoC by any given majority.
Section 9 application was admitted on 19th July, 2018 and Liquidation order passed by the Adjudicating Authority on 11th December, 2020. This is more than two years of time. Clearly, if in the time prescribed under Section 12 of IBC resolution was not reached in the given time, liquidation is the only consequence which had to follow and which has been ordered though belatedly.
There is yet another factor which is relevant and it is found that the Appellant has obtained Annexure-A-3 – an MSME Certificate for which application had been made on 5th March, 2019. Clearly, CIRP with regard to the Corporate Debtor started on 19th July, 2018 and on 5th March, 2019 the Corporate Debtor was under the management of IRP/RP - After CIRP was initiated former Promoter/ Director cannot suppress from IRP/RP and apply for MSME Certificate and tide over ineligibility under Section 29A of the IBC.
The Appeal is disposed of.