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2022 (2) TMI 415 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Termination of Corporate Insolvency Resolution Process of Nesa India Producer Limited - discharge of applicant as an IRP of the Corporate Debtor - reimbursement of expenses incurred on the CIR process - IRP has not received any claim even after the expiry of the 365 days from the Corporate Insolvency Resolution Period - HELD THAT:- It is an admitted fact that CIRP was initiated on 25th November, 2019 and the applicant was appointed as IRP, and the present application is filed on 20th February, 2021, i.e. after more than one year from the date of initiation of the CIRP. If the IRP has not received any claim even by the applicant, on whose application, the CIRP was initiated against the Corporate Debtor, in that case, after the expiry of more than one year, can CIRP be terminated on the request of the IRP? - HELD THAT:- Under section 33 sub-Section 1, where the Adjudicating Authority before the expiry of the Insolvency Resolution Process or the maximum period permitted for completion of the CIRP under Section 12 of the fast track CIRP under Section 56, as the case may be, does not receive a resolution plan under sub-Section 6 of Section 30 or reject the resolution plan under Section 31 for non-compliance of requirement specified therein, in that case, the Adjudicating Authority shall pass an order for liquidation and under Section 33 sub-Section 2 of the IBC, the resolution professional at any time during the Corporate Insolvency Resolution Process but before the confirmation of resolution plan intimate the Adjudicating Authority of the decision of the CoC to liquidate the Corporate Debtor, then the Adjudicating Authority shall pass an order for liquidation - Here in the case in hand, admittedly, the CoC is not constituted even after the expiry of more than 365 days and the IRP has also not received any claim during the CIRP. Rather, the IRP has prayed for termination of the CIRP on the ground that he has not received any claim. There is no such provision under the IBC to terminate the CIRP once it is initiated, the only way is either to complete the CIRP by approval of the resolution plan or pass the order of liquidation under Section 33 of the IBC. Here in the case in hand, admittedly, there is no resolution plan as there was no claimant and the CoC was not constituted till the date of filing the application. Under such circumstances, in terms of Section 33 sub-Section 1, the Adjudicating Authority is empowered to pass the liquidation order after the completion of the maximum period. Since, 330 days has already been completed and no resolution plan is received even the CoC is not constituted, therefore, instead of termination in the CIRP on the request of the applicant, we think it proper to pass an order under Section 33 of sub-Section 1 of the IBC to pass the liquidation order. The Corporate debtor is liquidated with immediate effect in the manner provided under Chapter III Part II of the IBC 2016 - Application allowed.
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