TMI Blog2020 (9) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the CoC liquidation has to follow under Section 33 of the Code. Adherence of the statutory requirement has to be done, as the language of the Code is clear that the adjudicating authority must give effect to it whatever may be consequences. Thus, the application is allowed by ordering liquidation of Corporate Debtor i.e. JVL Agro Industries Ltd. in the manner laid down in Chapter III Part II of IBC, 2016 and further appoint Supriyo Kumar Chaudhari as a liquidator in terms of Section 34(1) of the Code, and he is directed to issue public announcement stating that the Corporate Debtor is in liquidation, in terms of Regulation 12 of IBBI (Liquidation Process) Regulations, 2016 - Application allowed. - CA Nos. 215/2019, 73/2020 and IA No. 160/2020 in CP No. (IB) 223/ALD/2018 - - - Dated:- 19-8-2020 - Rajesh Dayal Khare, J. (Member (J) For the Appellant/Respondent: Yash Tondon, Krishna Agarwal, Saurabh Singh, Jishnu Chaudhary and Akhilesh Kalra, Advs. ORDER RAJESH DAYAL KHARE, J. (MEMBER (J)) 1. Since in all the applications (CA No. 215/2019, CA No. 73/2020, IA No. 160/2020 in CP No. (IB) 223/ALD/2018) the issues involved are common and the same questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de order dated 3rd, February, 2020 rejected the SREI application which was filed praying for consideration of their revised commercial proposal. 6. Meanwhile, an application U/s 60(5) of IBC, 2016 i.e. CA No. 73/ALD/2020 has been filed by Mr. Ramesh Chandra Garg, Chief Financial Officer of the Corporate Debtor, Mr. Yogesh Singh, the Electrical Engineer (HOD) of the Corporate Debtor and Mr. Prem Nath, the Mechanical Maintenance In-charge, of the Corporate Debtor jointly on behalf of employees of JVL Agro Industries Ltd. culminated into a trust by the name of employee welfare trust of JVL Agro seeking indulgence of this Tribunal to place a resolution plan for consideration and approval under the provision of IBC and further praying the liquidation application to be dismissed as it is not maintainable U/s 33(1) of IBC. 7. It is contended by the Counsel for the Workmen Employees that the object of IBC is the Resolution of assets of the Corporate Debtor and maximization of value of the assets of the Corporate Debtor and further stated that RP is biased towards COC led by SBI of which he is a former retired employee and thus cannot act as a RP and since 330 days is not mandatory, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of CIRP they have failed to file any plan. It is further submitted that there is no provision or law to allow a plan to be submitted at this stage as laid down in several judgments of the Apex Court that after the expiry of the maximum period provided for CIRP no plan can be presented and rather the CD has to go into liquidation. In addition, it is stated that the CIRP will become and unending process if such an application is allowed. In support of his contention the learned counsel for the RP has referred the judgment of Hon'ble Apex Court in the matter of Arcelormittal India Pvt. Ltd. Vs. Satish Kumar Gupta Others, (2019) 2 SCC 1 and referred to Para 79 82, which is further quoted; 72. Given the timeline referred to above, and given the fact that a resolution applicant has no vested right that his resolution plan be considered, it is clear that no challenge can be preferred to the Adjudicating Authority at this stage. A writ petition under Article 226 before a High Court would also be turned down on the ground that no right much less a fundamental right, is affected at this stage. This is also made clear by the first proviso to Section 30(4), whereby a Resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the robust financial strength, to Respondent No. 1, for onward consideration of the Resolution Plan. The Applicant had submitted the Expression of Interest (EOI) in furtherance of the spirit of Code, which aims at reorganization and insolvency resolution of the Corporate Debtor for maximizing the value its assets, in order to promote entrepreneurship, availability of credit, balance interest of the stakeholders and ensure that Corporate Debtor continues to be a going concern. The Applicant is filed the present application inter alia seeking resolution and revival in line with the law enunciated by the Hon'ble Apex Court which categorically states resolution before liquidation' 14. In reply, to this the learned counsel for the RP has stated that there is no provision or law to allow a Resolution Plan to be submitted at this stage rather it is contrary to the law and will become an unending process. Further, the Code does not allow the Resolution-Applicant to submit the plan directly to the Adjudicating Authority without participating in the Expression of Interest as published by RP and without giving any information to the Resolution Professional of the Resolution Plan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the present application for resolution as statutory period has elapsed from the date of initiation of CIRP and no Resolution Plan has been approved by the CoC. 18. At this juncture, it is pertinent to refer Section 33(1)(a) of the IBC, which mandates that where the Adjudicating Authority before the expiry of maximum period permitted for completion of the corporate insolvency resolution process under Section 12 or the fast track corporate insolvency resolution process under Section 56, as the case may be, does not receive a resolution plan under sub-section (6) of Section 30, it shall pass an order requiring the Corporate Debtor to be liquidated in the manner as laid down in the manner. 19. Therefore, the Tribunal observes that upon failure of the resolution process and no approved resolution plan and further on completion of statutory CIRP process, there is no alternative left but to order in conformity with the decision of the CoC liquidation has to follow under Section 33 of the Code. Adherence of the statutory requirement has to be done, as the language of the Code is clear that the adjudicating authority must give effect to it whatever may be consequences. 20. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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