2021 (11) TMI 842 - Tri - Insolvency and Bankruptcy

Liquidation of the Corporate Debtor - Section 33 of the Insolvency and Bankruptcy Code 2016 - HELD THAT - It is evident from the record that in compliances of Section 21 of Code read with Rule 6 8 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations 2016 (CIRP Regulation) the IRP constituted CoC. The liquidation of the Corporate Debtor is effective from the date of this order and the Moratorium declared vide order dated 03.02.2021 - Application allowed.

Summary

Issues: Liquidation of Corporate Debtor M/s. Padmavati Intermediates Pvt. Ltd.

1. Typographical Errors in Order:
The tribunal noted typographical errors in the order related to the name of the counsel, application numbers, and creditor designations. Corrective actions were taken under Rule 154 of the National Company Law Tribunal Rules, 2016.

2. Application for Liquidation:
An application was filed for the liquidation of Corporate Debtor M/s. Padmavati Intermediates Pvt. Ltd. by the Resolution Professional under Section 33 of the Insolvency and Bankruptcy Code, 2016.

3. Appointment of Resolution Professional:
The Resolution Professional was appointed after the admission of the application by the Adjudicating Authority, followed by confirmation as the Resolution Professional in the Committee of Creditors meeting.

4. Compliance with CIRP Regulations:
The Interim Resolution Professional constituted the Committee of Creditors in compliance with Section 21 of the Code read with relevant regulations.

5. Decision for Liquidation:
After discussions in multiple meetings, the Committee of Creditors decided to liquidate the Corporate Debtor due to the absence of assets, resolving to appoint the Resolution Professional as the liquidator.

6. Legal Provisions for Liquidation:
The tribunal analyzed Section 33 of the Code regarding the initiation of liquidation and cited relevant provisions for passing a liquidation order.

7. Judicial Precedent on Liquidation Decision:
The tribunal referenced a previous judgment by the National Company Law Appellant Tribunal regarding the commercial wisdom of the Committee of Creditors in recommending liquidation based on the evaluation of assets and liabilities.

8. Order for Liquidation:
The tribunal passed the order for the liquidation of the Corporate Debtor, ceasing the moratorium and appointing the Resolution Professional as the Liquidator subject to compliance with prescribed formalities.

9. Directions for Liquidation Process:
Detailed directions were issued regarding the liquidation process, including legal proceedings, powers vested in the Liquidator, stakeholder claims submission, public announcements, and reporting requirements.

10. Pending Applications:
Pending applications under different sections of the Code were directed to be listed along with the liquidation proceedings for further action by the Liquidator if necessary.

11. Disposal of Current Application:
The tribunal disposed of the present application, directing the registry to upload and send the order to relevant parties promptly.

This comprehensive summary provides a detailed analysis of the judgment regarding the liquidation of the Corporate Debtor M/s. Padmavati Intermediates Pvt. Ltd. by the National Company Law Tribunal, Ahmedabad Bench.