TMI Blog2021 (10) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... re Adjudicating Authority for liquidation of corporate debtor i.e. from 07.03.2021 till 23.03.2021. However, the application was filed on 02.11.2020 and no explanation with regard to the delay at least from 07.03.2021 to 23.03.2021 i.e., the date of passing of the resolution by CoC for liquidation of the Corporate Debtor to the date of imposition of Ist lockdown, has been given in the application. In view of the lackadaisical conduct of the RP, we are of the view that RP should not be continued as Liquidator in the present case. The corporate debtor Addinath Rubbers Private Limited is directed to be liquidated in the manner as laid down in Chapter III of the Code - Application allowed. - IA No. 819/2020 in CP (IB) No. 42/Chd/HP/2019 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the IRP was appointed as Resolution Professional are found attached as Annexure A-3 (Colly). Subsequently, RP appointed two registered valuers for determination of fair value and liquidation value in accordance with Regulation 35 of the CIRP Regulations. In the second meeting of CoC held on 28.11.2019, CoC has discussed and decided the minimum eligibility criteria for prospective Resolution Applicant(s). Copy of minutes of second CoC meeting is attached as Annexure A-4 of the application. Thereafter, Form G dated 11.12.2019 (Annexure A-4) for inviting Expression of Interest (EOI) and submission of resolution plans for the corporate debtor was published in Indian Express (English). In response to the publication of Form G, RP received thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 33 (2) of the Code are as follows:- 33. Initiation of liquidation.- (1) Where the Adjudicating Authority,- (a) before the expiry of the insolvency resolution process period or the maximum period permitted for completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan under sub-section (6) of Section 30; or (b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, It shall (i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter; (ii) issue a public announce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or-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. In the present case, the Resolution Professional has sufficient time available to file an application before Adjudicating Authority for liquidation of corporate debtor i.e. from 07.03.2021 till 23.03.2021. However, the application was filed on 02.11.2020 and no explanation with regard to the delay at least from 07.03.2021 to 23.03.2021 i.e., the date of passing of the resolution by CoC for liquidation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... met as per Regulation 2A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 13. Assessment of Sale as a going concern [Regulation 39C of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016] - The liquidator shall follow the regulation 32 of IBBI (Liquidation Process) Regulations, 2016 while selling the assets of the Corporate Debtor, if no compromise or arrangement succeeds or sale as going concern fails. 14. Fees of the Liquidator [Regulation 39D of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016] - The RP proposed to be appointed as Liquidator shall charge such fee for the conduct of the liquidation proceedings and in such proportion to the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees 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 personnel of the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as may be required by him in managing the affairs of the Corporate Debtor and provisions of Section 19 of the Code shall apply in relation to voluntary liquidation process as they apply in relation to liquidation process with the substitution of references to the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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