TMI Blog2021 (1) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... t that no efforts at all have been made to find resolution Applicant as within period of less than two months from the insolvency commencement date, the application for liquidation of the Corporate Debtor has been filed and that too without bringing any material on record in support of its claims. Even from other business conducted in the said meeting of COC, nothing appears which could throw light for necessity of liquidation at first meeting of Committee of Creditors (COC) itself. Further, as per the explanation of Section 33(2) of Insolvency and Bankruptcy Code, 2016, Committee of Creditors (COC) is empowered to take decision to liquidate the Corporate Debtor at any time after its constitution but the relevant material and resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material on record. It is noted that Corporate Debtor has been admitted into Corporate Insolvency Resolution Process on 25.07.2019. Form-A has been published on 9th August, 2019. The last date for submission of the claimed was fixed as 20.08.2019. Committee of Creditors (COC) has been formed and in its meting dated 5th September, 20919 which is its first meeting, in that meeting itself, the decision to liquidate the Corporate Debtor has been taken which was based on claims made as regard to the condition of the plant and machinery of the Corporate Debtor. However, apart from this, it is noted that in the application filed by RP, a claim, in para-7 of application has been made as regard to the condition of plant and machinery. It has also b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting Authority also mentioned the fact that Hon'ble NCLAT had expected the RP to continue the Corporate Debtor as going concern. Apart from this, we also find that CGST and Central Excise Commissionerate has also filed a claim of excise dues arising out of order dated 29.10.2015. Considering this factual position, this Adjudicating Authority had thought it proper to seek the details of assets and valuation thereof to proceed with the matter. However, against such directions, RP moved before Hon'ble NCLAT and Hon'ble NCLAT vide its order dated 14.08.2020 passed in Appeal No. 683 of 2020 directed us to dispose of application within one week. Copy of this order was filed by the counsel on the date of hearing which had already been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would exclude the liquidators' fee. Taxes would be payable over and above the fee. 50% of the above fee will be paid on amount realized while the balance will be paid on making payment to the Lenders. Mr. Rathi confirmed the above arrangement. 5. From perusal of the above, it is apparent that no resolution has been passed as regard to proceeding with the liquidation of Corporate Debtor which is required in terms of Regulation 39C of Corporate Insolvency Resolution Process Regulations, 2016. Even percentage of voting has not been mentioned though this may not be of much significance as there is a sole Financial Creditor but still it is a requirement of law. It is apparent that no efforts at all have been made to find resol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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