TMI Blog2021 (3) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to the CoC - it is a settled principle of law regarding the Commercial Wisdom of the CoC to liquidate the Corporate Debtor and it need not be interfered with. Application allowed. - M.A. 2702 OF 2019 in C.P. No. 65 of 2018 - - - Dated:- 5-3-2021 - Hon ble Shri H.V. Subba Rao, Member (Judicial) and Hon ble Shri Shyam Babu Gautam, Member (Technical) For the Resolution Professional: Adv. Durgaprasad Halwai and RP Mr. Dilip Kumar Jagad, CA, present in person. ORDER It is an application filed by Resolution Professional, Mr. Dilipkumar Natvarlal Jagad seeking liquidation of Atlantis Life Sciences Private Limited (hereinafter referred as Corporate Debtor ) under Section 33(1) read with Section 60 of the Insolvency and Bankruptcy Code, 2016 (hereinafter called as the Code ), praying for following reliefs: a. This Hon ble Tribunal may be pleased to allow the present Application under Section 33 of the Insolvency and Bankruptcy Code, 2016; b. This Hon ble Tribunal may be pleased to pass appropriate orders permitting the initiation of liquidation process of the Corporate Debtor; c. That this Hon ble Tribunal be pleased to appoint applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marked as Exhibit H-1 and H2, the copies of the Valuation Reports of amalgamated shop No. 3 4 on Ground Floor Basement Level, Bldg. known as Gorai Indraprastha CHSL situation at Plot NO. 90, RSC-37, Gorai-II of village Borivali, Near Mumbai Bank, MHADA Layout, Borivali (W), Mumbai-400092 6. The 3rd CoC meeting was held on 15.03.2019 wherein further claims were received and considered and thereafter the list of creditors was prepared which is as follows: Particulars Amount Admitted (Rs.) Amount Admitted (Rs.) Financial Creditors 9,30,44,303 9,30,44,303 Operational Creditors 44,69,888 29,49,797 Total 9,75,14,191 9,59,94,100 The claim of original petitioner i.e. Pariman Enterprise Pvt. Ltd. included interest of ₹ 15,20,090 @24% which is not admitted. CoC took note of the same: a. List of CIRP cost was updated and was considered by CoC; b. It was decided to defer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to pass resolution to take suitable action under applicable sections of IBC, 2016 for fraud and falsification of accounts. After considering the above facts, CoC decided to call for next CoC meeting before the expiry of CIRP period to take suitable actions. b. As the Corporate Debtor has indulged in falsification of accounts, the Corporate Debtor has been also declared as wilful defaulter by Financial Creditor (Bank of Baroda), the product registration of the company in Nigeria and Kenya are expiring in 2018/19 and as such the product registrations may not fetch any value. Except shop at Borivali, Mumbai the Corporate Debtor does not have any other assets. Looking at the above facts, the CoC has decided not to invite for Resolution Plans for the Corporate Debtor due to zero viability, the CoC unanimously decided to liquidate the Corporate Debtor. Resolution was passed by the CoC for the same. 10. The suspended director of the Corporate Debtor has filed its reply opposing this application and in consequence, opposing liquidation of the Corporate Debtor. He has alleged that the applicant is guilty of suggestion falsi and supressio very. He further alleged that throughou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its payments. The applicant and the CoC has taken the decision of liquidating the company on a pretext that the Corporate Debtor is a trading company and cannot carry on business any further. Therefore, it is in the interest of justice and equity that the Corporate Debtor is granted an opportunity to arrive at a Resolution Process. No harm, loss or prejudice would be caused to the applicant or the CoC if the said opportunity is granted. Along with the above, the suspended director of the Corporate Debtor has also prayed for excluding a period of 270 days since effectively the CIRP was not conducted in a manner envisaged in the Code. The Corporate Debtor had also filed an application bearing number MA No. 2739/2019 seeking an exclusion of time on certain grounds as stated therein. ORDER 15. We have heard the Applicant and the suspended director of the Corporate Debtor and also perused all the documents submitted by them. It is observed from the minutes of the 4nd CoC meeting that the CoC has, with 100% majority, decided to liquidate the Corporate Debtor. The suspended director of the Corporate Debtor has raised objections for allowing this application on the ground t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... site majority of the members of the aforesaid Committee in its discretion. In this case, the CoC has, with 100% majority, passed resolution for liquidation of the Corporate Debtor and hence it is the commercial wisdom of the CoC and we cannot interfere. Also, it is pertinent here to mention that in this case, the maximum period for computing in the CIRP period has already lapsed and we are left with no option but to allow liquidation. Therefore, the attempts of the suspended director are futile and would only result in wasting of more time with no yielding benefits as such. 18. With these observations, we hereby allow this Miscellaneous Application bearing Number I.A. 2702 of 2020 with the following directions: a. Mr. Dilipkumar Natvarlal Jagad, having Registration No. IBBI/IPA-001/IP-P00233/2017- 2018/10462, is hereby appointed as the Liquidator as provided under Section 34(1) of the Code. b. That the Liquidator for conduct of the liquidation proceedings would be entitled to the fees as provided in Regulation 4(2)(b) of the IBBI (Liquidation Process Regulations), 2016. c. The Liquidator appointed in this case to initiate liquidation process as envisage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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