TMI Blog2021 (2) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... essional on 19-8-2020. The period of 180 days were completing on 19-7-2020 but as per Notification No. IBBI/2020-21/GN/REG059 dated 20-4-2020, the period of Lockdown is excluded for the purpose of calculating the timelines in CIR Process. Hence, after excluding the lockdown period, the present application is filed within the prescribed period. Appointment of Liquidator - HELD THAT:- Section 34 (1) of the Code provides that where the Adjudicating Authority passes an order for liquidation of the corporate debtor under section 33, the resolution professional appointed for the corporate insolvency resolution process shall, subject to submission of written consent act as the Liquidator for the purpose of liquidation - The Law Researcher of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the corporate debtor. - IA No. 426 of 2020, CP (IB) No. 339/CHD/HRY/2019 - - - Dated:- 26-11-2020 - Ajay Kumar Vatsavayi, JUDICIAL MEMBER AND Raghu Nayyar, TECHNICAL MEMBER For the Applicant : Shubhnit Hans, Adv. ORDER IA No. 426/2020 AJAY KUMAR VATSAVAYI, JUDICIAL MEMBER. 1. This application has been filed by Mr Amarnath, the Resolution Professional of M/s Karan Processors Pvt. Ld. (corporate debtor) under section 33 (2) of the Insolvency and Bankruptcy Code, 2016 for passing an order of Liquidation in the matter of M/s Karan Processors Private Limited (Corporate Debtor). 2. CP (IB) No. 339/Chd/Hry/2019 filed under section 9 of the Insolvency and Bankruptcy Code, 2016 by Ultratreat Industrial Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the COC recommending liquidation of the corporate debtor after proper evaluation of the assets and liabilities of corporate debtor with no Resolution Plan forthcoming would be a business decision falling within the domain of commercial wisdom of the COC which is not amenable to judicial review. 6. We have carefully considered the submissions made in the application by the Resolution Professional and have also perused the records. 7. The relevant provisions of Section 33 (2) of the Code are as follows:- 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 credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal has checked the credentials of proposed Liquidator and nothing adverse has been found on record. Therefore, Mr. Amarnath is appointed as the Liquidator. 10. Regulation 39B, 39C and 39D in the CIRP Regulations, 2016 have been inserted by Notification No. IBBI/2019-20/GN/REG/048 dated 25-7-2019. Liquidation Cost (Regulation 39B of CIRP Regulations, 2016) 11. The COC has not made compliance of Regulation 39B of the CIRP Regulations, 2016 regarding meeting of liquidation costs. The Liquidator is, therefore, directed to take necessary action under Regulation 2A of the CIRP (Liquidation Process) Regulations, 2016 regarding contributions to liquidation costs. Assessment of Sale as a going concern (Regulation 39C of CIRP Regulati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions 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; and (iii) That this order of liquidation under section 33 of the Code shall be deemed to be a notice of discharge to the officers, employees and workmen of the Corporate Debtor, except when the business of the Corporate Debtor is continued during the liquidation process by the liquidator; and (iv) That all the powers of the Board of Directors, key managerial personnel and the partners of the Corporate Debtor, as the case may be, shall cease to have effect and shall be vested in the liquidator; and (v) That the person ..... X X X X Extracts X X X X X X X X Extracts X X X X
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