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TMI Blog2021 (5) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 is an application filed by the Resolution Professional (RP) upon the instructions of the Committee of Creditors (CoC) seeking liquidation of the Corporate Debtor, viz., Oxford Facilities Management, on the ground that the only asset of the Corporate Debtor is a fixed deposit of Rs. 3.5 Crore. 3. I.A. (IB) No. 1091/KB/2020 is an application filed by one of the member of the Suspended Board of Directors, seeking the following reliefs: a. Set aside and/or quash the decision of the Committee of Creditors taken in the 4th Committee of Creditor's meeting held on 5th September, 2020; b. Stay of operation of the decision of the Committee of Creditors taken in the 4th Committee of Creditor's meeting held on 5th September, 2020; c. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant appointed four valuers for trade receivables, cash and cash equivalents. 9. The CoC in its 4th meeting resolved to proceed for liquidation of the Corporate Debtor by 100% voting share and resolved to appoint the Applicant as the Liquidator. 10. The Applicant/Resolution Professional, Ms. Sneh Maheshwari [Reg. No. IBBI/IPA-001/IP-P01751/2019-2020/12691], has agreed to act as liquidator to carry on the process of liquidation and has given her consent to act as Liquidator, in the prescribed Form AA, in terms of section 34(1) of the Code. I.A.(IB) No. 1091/KB/2020 Submissions of the learned Counsel on behalf of the Applicant 11. The Learned Counsel for the Applicant submits that the Applicant has preferred an appeal before the Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke any steps for a period of six months to challenge the order of admission dated 13.03.2020. 17. On 05.09.2020, the CoC by 100% majority voted and resolved to file an application before this Bench with a prayer to liquidate the Corporate Debtor and an application under section 33 of the Code was filed by the RP on or about 09.09.2020 which was numbered as IA(IB) No. 804/KB/2020. 18. It is further submitted that the Corporate Debtor instituted an appeal being CA (AT)(Ins.) No. 864 of 2020 only after IA(IB) No. 804/KB/2020 had been filed. It is further averred that the Applicant in this IA had attended the 4th CoC meeting, but he did not raise any objection with regard to the constitution of the CoC. 19. Learned Senior Counsel appearing f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative submitted that the claim of the Financial Creditor is not disputed on merits. The Applicant never disputed the admission of the claim of Respondent No. 1 as a financial creditor to the RP during the conduct of the corporate insolvency resolution process in respect of the corporate debtor. 24. The appeal was filed after the application for liquidation, i.e., IA (IB) No. 804/KB/2020 was filed. No stay order has been passed by the Hon'ble NCLAT in respect to the order dated 13.03.2020. It is averred that the Applicant was present in the 4th CoC meeting held on 05.09.2020 and no objection was raised by the Applicant when the CoC resolved to liquidate the Corporate Debtor. Submissions made in rejoinder by the Applicant in I.A.(IB) No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orate Debtor as the Corporate Debtor has no immovable assets. Be that as it may, it will not be justifiable to pass an order of liquidation at this stage till the Hon'ble NCLAT takes a final view on the appeal filed. This view is being taken in view of the fact that the only asset of the Corporate Debtor is a fixed deposit which can be withdrawn and distributed within a short period of time, and it would be a tad difficult to reverse the clock once the liquidation order is passed. If further action is taken to distribute the fixed deposit by liquidating the same, then it will also have the effect of rendering the appeal otiose. 32. In the circumstances, at this stage, I am not persuaded to pass an order for liquidation of the Corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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