TMI Blog2020 (6) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... with. - CA NOS. 34 And 24 of 2020 And CP (IB) NO. 267/CHD/PB/2018 - - - Dated:- 27-1-2020 - Ajay Kumar Vatsavayi, Judicial Member And Pradeep R. Sethi, Technical Member For the Petitioner : Harsh Garg and Pulkit Goyal, Advs. For the Respondent : V.K. Mahajan, Adv. ORDER CA No. 34 of 2020 PRADEEP R. SETHI, TECHNICAL MEMBER 1. The instant application is filed under section 33(1) and (2) of the Insolvency and Bankruptcy Code, 2016 (Code) for passing an order requiring M/s. Jai Bholenath Enterprises Private Limited (Corporate Debtor) to be liquidated in the manner as laid down in the Code. 2. CIRP proceedings were initiated in the case of the Corporate Debtor vide order dated 12-4-2019 and Shri Sandeep Chandna was appointed as Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC) consisting of one financial creditor namely Punjab National Bank having 100% voting share and in the first meeting of the 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equirements specified therein, It shall (i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter; (ii) issue a public announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered. (2) Where the resolution professional, at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). 8. In the instant case, it was discussed in the 7th meeting of the CoC held on 13-12-2019 that Form G was published in newspapers -Financial Express and Jan Satta - on 18-7-2019 calling for EOI from interested parties, but no one expressed expression of 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 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsent from the insolvency professional in the specified form within ten days of the direction issued by the Adjudicating Authority under sub-section (5) of Section 34 of the Code. 14. Sub-section (7) of Section 34 of the Code says that the Adjudicating Authority shall, on receipt of the proposal of the Board for the appointment of an insolvency professional as liquidator, by an order appoint such insolvency professional as liquidator. 15. In this regard a letter bearing File No. 25/02/2020-NCLT dated 7-1-2020 has been received from the National Company Law Tribunal, New Delhi forwarding therewith a copy of letter No. IBBI/IP/EMP/2019/01 dated 31-12-2019 along with the guidelines and the panel of resolution professionals approved for NCLT, Chandigarh Bench for appointment as IRP or Liquidator. The panel is valid for six months from 1-1-2020 to 30-6-2020. We select Mr. Vikas Rai Berry appearing at Serial No. 29 of the panel to be appointed as Liquidator. 16. The Law Research Associate of this Tribunal has checked the credentials of 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/I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ) thereof, if an order for liquidation is passed under section 33. (2) Where the committee recommends sale as a going concern, it shall identify and group the assets and liabilities, which according to its commercial considerations, ought to be sold as a going concern under clause ( e ) or clause ( f ) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. (3) The resolution professional shall submit the recommendation of the committee under sub-regulations (1) and (2) to the Adjudicating Authority while filing the approval or decision of the committee under section 30 or 33, as the case may be. . 19. In the instant case, the CoC has estimated the liquidation cost at ₹ 9,50,000/- (refer minutes of 7th CoC meeting dated 13-12-2019). However, the CoC has not estimated the value of the liquid assets under Regulation 39B(2) of the CIRP Regulations, 2016 and has not approved a plan providing for contribution for meeting the difference between the estimated value of the liquid assets and estimated liquidation costs. The Liquidator will, therefore, take necessary action under Regulation 2A of the Liquidation Process Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dation commencement date. 23. It is further directed that the announcement shall be published in accordance with Regulation 12(3) as under:- (a) In one English and one regional language newspaper with wide circulation at the location of the registered office and principal office, if any, of the corporate debtor and any other location where in the opinion of the liquidator, the corporate debtor conducts material business operations; (b) On the website, if any, of the corporate debtor; and (c) On the website, if any, designated by the Board for this purpose. 24. In accordance with Regulation 13 of the 2016 Regulations, the Liquidator shall file his preliminary report within 75 days and to file regular progress reports as per Rule 15 of the 2016 Regulations every fortnightly thereafter. 25. It is clarified that the Financial Creditors are not debarred from having recourse to enforce the personal guarantees and to take proper steps in this regard. 26. The Liquidator shall take into his possession the assets of the Corporate Debtor. 27. Thus, CA No. 34/2020 stands disposed of. Copy of this order be supplied to the Applicant/Resolution Professional ..... X X X X Extracts X X X X X X X X Extracts X X X X
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