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TMI Blog2020 (7) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... he IBC, 2016 read with Rule 6 of I&B (AAA) Rules, 2016, by inter alia seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/S. My Choice Knit and Apparels Private Limited (Respondent/ Corporate Debtor) on the ground that it has committed default for an amount of Rs. 1,07,27,295/- (Rupees One Crore Seven Lakhs Twenty Seven Thousand Two Hundred and Ninety Five only). After considering the case, Adjudicating Authority initially dismissed the case vide order dated 04.04.2019. Aggrieved by the order, the Petitioner has filed Appeal before the Hon 'ble NCLAT vide Company Appeal(AT) (Insolvency) No.513 of 2019, which was allowed by an order dated 03.09.2019 by setting aside the order by directing the Adjudicating Authority to admit the case, if there was no settlement reached between the Parties. Since there was no settlement, was admitted by an Order dated 18.10.2019, by initiating CIRP in respect of the Corporate Debtor; appointing Shri Ramanahalli S. Doddabyregowda, as IRP, imposing moratorium etc. Subsequently, the COC of the Corporate Debtor in their first meeting held on 21.11.2019 decided to continue the IRP as the Resolution Professional. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmittee of Creditors, which consists of the following creditors, namely: a. Mr. Mohammed Shakir, Sole Proprietor, Techniks India (Financial Creditor), represented by Mr. Ravi Shankar Devarakonda holding 100.00% of the Voting Rights and other Financial Creditors viz., Aaryan Klothing Co., & Mr. Balkishan Boob are not eligible to be Members of Committee of Creditors (COC) as they are Related parties to Corporate Debtor, as per the provisions of Section 21 (2) of IBC, 2016. b. M/S. Bannari Amman Spinning Mills Ltd., the Petitioner/ Operational Creditor, holding aggregate dues not less than 10% of the Debts, is allowed to attend the meeting of COC without being Member having no voting right, in terms of provisions of Section 24 of Code. (6) Ultimately, 5th COC meeting was held under Regulation 19(1) and applicable provisions of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 on 18.03.2020. In compliance of Section 22(1) of the IBBI, the Agenda/Actions of the meeting is as follows: i. The items of Agenda/ Actions requiring approval of the committee as per Regulation 25(2) and applicable provisions of the Insolvency and Bankruptcy Board of India ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngalunz Bench, to consider the decision of the COC as a special case in the present circumstances, which there are no assets in the Company and Company is left only with liabilities. RESOLVED FURTHER THAT the Committee of Creditors be and is hereby authorize the Resolution Professional Mr. Ramanahalli S Doddabyregowda to submit the Application to the Adjudicating Authority, with prayer to pass order as approved by the Committee of Creditors for payment of Workmen's dues for the period of twenty-four months preceding the Dissolution order date on pro-rate basis, if the Amount left over do not cover the payment of claim obligation of workmen. (10) Total assets of the Company, as per Books of accounts are realized. i. The total outstanding amount payable by Corporate Debtor to Creditors was Rs. 8,17,19,714.00 as on date of Admission, out of which IRP/RP received total claim amounting to Rs. 4,31,14,104.00; The total realizable Assets value of the Company as per the valuation done by the IBBI approved Valuers in terms of Regulation 27 is Rs. 8,00,234.00, against which Resolution Professional has recovered Rs. 8,70,479.19, which is over and above the liquidation and Fair Val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Bank. following, out of the balance amount of Rs. 3,87,701.19, as decided and approved by COC in the meeting held on 21.03.2020. 3. Heard Ramanahalli S. Doddabyregowda, learned Resolution Professional, through Video Conference. We have carefully perused the pleadings of the party along with extant provisions of the Code and the Rules made thereunder. 4. Before considering the merits of case, it is necessary to refer relevant provisions and rules, as available under the Code and the Rules made thereunder. Section 33(2) of Code reads "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 approved by not less than sixty-six percent of the voting share 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)" Section 54 of the Code reads "54. (1) Where the assets of the Corporate Debtor have been completely liquidated, the liquidator shall make an Application to the Adjudicating Authority for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 714.00 as on date of Admission, out of which IRP/RP received total amount of Rs. 4,31,14,104.00. The total realizable Assets value of the Company as per the valuation done by the IBBI approved Valuers in terms of Regulation 27 is Rs. 8,00,234.00, against which Resolution Professional has recovered Rs. 8,70,479.19, which is over and above the liquidation and Fair Value. Therefore, the Resolution Professional paid on 20.03.2020 with breakup of, IRP/RP Professional Fee - Rs. 3,35,000.00; Towards Publication cost (reimbursement to IRP) - Rs. 29,778.00; To Valuers (4 Nos.) with GST-Rs. 1,18,000.00. Therefore, the balance amount is Rs. 3,87,701.19, which is to be disbursed to the workmen as decided and approved by COC in its meeting held on 21.03.2020. However, the total claim of workmen is Rs. 5,29,203.00, which covers the period of twenty-four months preceding the Dissolution order date. Therefore, it would be just and proper to permit the Resolution Professional to pay an amount of Rs. 3,72,363.00 to workmen on pro-rata basis, on making provision of Rs. 15,338.19 towards Bank service charges levied by the Bank. 7. The above facts and circumstances of the Case justified that there wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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