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TMI Blog2020 (6) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... he CoC dated 10-5-2019, the IRP was resolved to be replaced by Shri Kuljeet Singh as the Resolution Professional (RP). The Adjudicating Authority (AA) passed the order on 30-7-2019 for the replacement. 3. It is submitted that after informing the CoC in the second meeting held on 29-6-2019 that the Corporate Debtor and its key managerial persons are not co-operating and providing required information to prepare information memorandum, application under section 19(2) of the Code was moved before the AA. 4. It is submitted that advertisement for EOI was published and carried out in two newspapers on 18-7-2019, although till then the information memorandum was not prepared by the IRP. However, no EOI is stated to be received. Extension of period of CIRP by 90 days more beyond 8-10-2019 i.e. date on which 180 days were expiring, is stated to be given by the AA by order dated 7-10-2019. 5. It is submitted that there is no stock, plant and machinery, immovable property as per the Balance Sheet of the Corporate Debtor as on 31-3-2019 and 12-4-2019 and that thereafter, in the 7th meeting of the CoC conducted on 13-12-2019, the financial position of the Corporate Debtor and status of CIRP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest. It wag discussed that the Corporate Debtor did not get liquor licence for the years 2017-18 onwards, so could not continue business activities; there was no stock as per books on 31-3-2018, 31-3-2019 and 12-4-2019; outstanding trade debtors are amounting to Rs. 10.6 crores out of which, most belong to its group entities/individuals, where no recovery has been made; there is no known immovable property in the name of the Corporate Debtor as on date. The CoC thereupon passed resolution with 100% voting share resolving that pursuant to Section 33(2) of the Code, the RP shall make application to AA for liquidation of the Corporate Debtor. 9. The minutes of the 7th meeting of CoC held on 13-12-2019 state that the last date of CIRP is 6-1-2020. The instant application is filed on 7-1-2020. The application is, therefore, not filed during the CIRP and the conditions provided for in Section 33(2) of the Code are not satisfied. 10. The application for liquidation is, therefore, being considered under section 33(1)(a) of the Code. The conditions provided therein are satisfied since before the expiry of the CIRP, no resolution plan under section 30(6) of the Code is received. Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Vikas Rai Berry and there is nothing adverse against him. In view of the above, we appoint Mr. Vikas Rai Berry, Registration No. IBBI/IPA-002/IP-N00558/2017-2018/11694, 206, 2nd Floor, BRM Towers, Loha Market, Millar Ganj, Ludhiana, Punjab, E-mail: [email protected], as the Liquidator. 17. The fees of the Liquidator will be paid as per Section 34 (8) and 34 (9) of the Code read with Regulation 4(2) and (3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (Liquidation process Regulations, 2016). 18. Regulations 39B and C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons Regulations, 2016 (CIRP Regulations, 2016) are as under: "39B. Meeting liquidation cost.- (1) While approving a resolution plan under sub-section (4) of section 30 or deciding to liquidate the corporate debtor under sub-section (2) of section 33, the committee may make a best estimate of the amount required to meet liquidation costs, in consultation with the resolution professional, in the event an order for liquidation is passed under section 33. (2) The committee shall make a best estimate of the value of the li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Liquidator will, therefore, take necessary action under Regulation 2A of the Liquidation Process Regulations, 2016. 20. The CoC has not made any assessment of sale as a going concern under Regulation 39C of the CIRP Regulations, 2016. The Liquidator will, therefore, take necessary action under Regulation 32A(3) of the Liquidation Process Regulations, 2016. 21. It is directed that all the directions/requirements and provisions of Chapter III of the Code and Liquidation Process Regulations, 2016 shall be strictly complied with. Some of the directions are as under:- (i) That as per Section 33(5) of the Code and subject to Section 52 of the Code, no suit or other legal proceedings shall be instituted against the corporate debtor: Provided that a suit or other legal proceedings may be instituted by the Liquidator on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority; (ii) That the provisions of sub-section (5) of Section 33 of the Code shall not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator; (iii) That this order of liquidatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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