9911796707
TMI Blog2019 (11) TMI 1642X X X X Extracts X X X X X X X X Extracts X X X X ..... .2019 passed by this Tribunal, Mr. Mahesh Bansal, Interim Resolution Professional, was substituted with Mr. Mahesh Chandra Purohit and the latter was appointed as Resolution Professional. 3. It is stated that invitation for expression of interest (Form G) was issued for the first time on 19.04.2019, Annexure 3, the same was published in two newspapers 20.04.2019 and the last date for submission of the resolution plan was fixed on 19.06.2019. It is further stated that one expression of interest was received from prospective resolution applicant and information memorandum along with request for resolution plan and evaluation matrix was shared with the prospective resolution applicant on 19.05.2019, however, no resolution plan was received within the stipulated period. 4. It is stated that as the period of 180 days was expiring on 20.07.2019, the COC in its 4th Meeting held on 10.07.2019, decided to make one more attempt of resolution by inviting EOI again with suitable revision in eligibility criteria and evaluation matrix and considering the limited period available, decided for extension of CIRP period for further 90 days and instructed the Resolution Professional to file a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and (iii) of clause (b) of sub-section (1). 1 [Explanation - For the purpose of this sub-section, it is hereby declared that the committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution under sub-section (1) of section 21 and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum.] (3) Where the resolution plan approved by the Adjudicating Authority is contravened by the concerned corporate debtor, any person other than the corporate debtor, whose interests are prejudicially affected by such contravention, may make an application to the Adjudicating Authority for a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). (4) On receipt of an application under sub-section (3), if the Adjudicating Authority determines that the corporate debtor has contravened the provisions of the resolution plan, it shall pass a liquidation order as referred to in subclauses (i), (ii) and (iii) of clause (b) of sub-section (1). (5) Subject to section 52, when a liquidation order has been passed, no suit or other legal pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or references to the interim resolution professional. (4) The Adjudicating Authority shall by order replace the resolution professional, if- (a) the resolution plan submitted by the resolution professional under section 30 was rejected for failure to meet the requirements mentioned in sub-section (2) of section 30; or (b) the Board recommends the replacement of a resolution professional to the Adjudicating Authority for reasons to be recorded 1 [in writing; or] [(c) the resolution professional fails to submit written consent under subsection (1).] (5) For the purposes of 3 [clause (a) and clause (c)] of sub-section (4), the Adjudicating Authority may direct the Board to propose name of another insolvency professional to be appointed as a liquidator. (6) The Board shall propose the name of another insolvency professional [along with written consent from the insolvency professional in the specified form] within ten days of the direction issued by the Adjudicating Authority under sub-section (5). (7) The Adjudicating Authority shall, on receipt of the proposal of the Board for the appointment of an insolvency professional as liquidator, by an order appoint such insolvency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int Mr. Harvinder Kumar Jatana, Registration No. IBBI/IPA-002/IP-N00418/2017-2018/11193, Mobile No. 9814583727, Email: [email protected], as the Liquidator. 17. Regulations 39B, 39C and 39D in the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulation 2016) have been inserted by Notification No.IBBI/2019- 20/GN/REG/048 dated 25.07.2019. These regulations are as follows:- "39B. Meeting liquidation cost. (1) While approving a resolution plan under sub-section (4) of section 30 or deciding to liquidate the corporate debtor under subsection (2) of section 33, the committee may make a best estimate of the amount required to meet liquidation costs, in consultation with the resolution professional, in the event an order for liquidation is passed under section 33. (2) The committee shall make a best estimate of the value of the liquid assets available to meet the liquidation costs, as estimated in sub-regulation (1). (3) Where the estimated value of the liquid assets under subregulation (2) is less than the estimated liquidation costs under sub-regulation (1), the committee shall approve a plan providin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Committee of Creditors in the 6th Meeting held on 15.10.2019. It was thereby pleaded that the requirements of Regulation 39B, 39C and 39D of the CIRP Regulations 2016 are satisfied in the present case. In view of the insertion of Regulations 39B, 39C and 39D, the corresponding modifications have been also made in Form H, under Paragraph Nos. 15A to 15C, which read as under:- "15A. The committee has approved a plan providing for contribution under regulation 39B as under: a. Estimated liquidation cost: Rs............... b. Estimated liquid assets available: Rs............... c. Contributions required to be made: Rs............... d. Financial creditor wise contribution is as under: Sl. No. Name of financial creditor Amount to be contributed (Rs.) 1 2 .. Total 15B. The committee has recommended under regulation 39C as under: a. Sale of corporate debtor as a going concern: Yes/No b. Sale of business of corporate debtor as a going concern: Yes/ No The details of recommendation are available with the resolution professional. 15C. The committee has fixed, in consultation with the resolut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rman informed the members of COC that as per Regulation 39C of CIRP Regulations 1) While approving a resolution plan under Section 30 or deciding to liquidate the corporate debtor under section 33, the committee may recommend that the liquidator may first explore sale of the corporate debtor as a going concern under clause (e) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 or sale of the business of the corporate debtor as a going concern under clause (f) thereof, if an order for liquidation is passed under Section 33. 2) Where the committee recommends sale as a going concern, it shall identify and group the assets and liabilities, which according to its commercial considerations, ought to be sold as a going concern under clause (e) or clause (f) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 3) The resolution professional shall submit the recommendation of the committee under sub regulations (1) and (2) to the Adjudicating Authority while filing the approval or decision of the committee under section 30 or 33, as the case may be. The COC discussed and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or for the period from the liquidation commencement date till repayment of interim finance, whichever is lower; (vii) the amount repayable to contributories under sub-regulation (3) of regulation 2A; (viii) any other cost incurred by the liquidator which is essential for completing the liquidation process: Provided that the cost, if any, incurred by the liquidator in relation to compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013), if any, shall not form part of liquidation cost.] Regulation 2A [2A. Contributions to liquidation costs. (1) Where the committee of creditors did not approve a plan under subregulations (3) of regulation 39B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall call upon the financial creditors, being financial institutions, to contribute the excess of the liquidation costs over the liquid assets of the corporate debtor, as estimated by him, in proportion to the financial debts owed to them by the corporate debtor. Illustration Assume that the excess of liquidation costs over liquid assets is Rs. 10, as estimated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporate insolvency resolution process, for the period of compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013); and (b) as a percentage of the amount realised net of other liquidation costs, and of the amount distributed, for the balance period of liquidation, as under: Amount of Realisation /Distribution (In rupees) Percentage of fee on the amount realised/distributed in the first six months in the first six months thereafter Amount of Realisation (exclusive of liquidation costs) On the first 1 crore 5.00 3.75 1.88 On the next 9 crore 3.75 2.80 1.41 On the next 40 crore 2.50 1.88 0.94 On the next 50 crore 1.25 0.94 0.51 On further sums realized 0.25 0.19 0.10 Amount Distributed to Stakeholders On the first 1 crore 2.50 1.88 0.94 On the next 9 crore 1.88 1.40 0.71 On the next 40 crore 1.25 0.94 0.47 On the next 50 crore 0.63 0.48 0.25 On further sums distributed 0.13 0.10 0.05 (3) Where the fee is payable under clause (b) of sub-regulation (2), the liquidator shall be entitled to receive half of the fee payable on realisation only after such realised amount is distributed. Clarific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Code shall apply in relation to voluntary liquidation process as they apply in relation to liquidation process with the substitution of references to the Liquidator for references to the Interim Resolution Professional. 24. The Liquidator shall publish public announcement in accordance with Regulation 12 of the 2016 Regulations and in Form B of Schedule II of these Regulations within five days from receipt of this order calling upon the stake holders to submit their claims as on liquidation commencement date and provide the last date for submission of claim which shall be 30 days from the liquidation commencement date. 25. It is further directed that the announcement shall be published in accordance with Regulation 12(3) as under:- "(a) In one English and one regional language newspaper with wide circulation at the location of the registered office and principal office, if any, of the corporate debtor and any other location where in the opinion of the liquidator, the corporate debtor conducts material business operations; (b) on the website, if any, of the corporate debtor; and (c) on the website, if any, designated by the Board for this purpose." 26. In accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
