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TMI Blog2019 (12) TMI 1578X X X X Extracts X X X X X X X X Extracts X X X X ..... tion filed by the Resolution Professional u/s.33 of the Insolvency and Bankruptcy Code, 2016 nw. Regulation 33(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and Sec.60(5) of the Insolvency and Bankruptcy Code, 2016 for liquidation of the Corporate Debtor based on the Resolution passed by the CoC on 18.10.2019 with 73.44% voting share held by M/s. Muthoot Fincorp Limited. 2. On perusal of this case, IBA/434/2019 was admitted on 08.04.2019 appointing Ms. SriPriya Kumar as Interim Resolution Professional, thereafter on collation of claims received by the IRP, the CoC was constituted on 03.07.2019, and the Resolution Professional ordered for valuation of the company. 3. Thereafter, as CoC passed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to come from the Suspended-Directors and also subject to the outcome of MA/363/2019. 6. The RP has also stated that, in the same meeting, the CoC decided to conduct forensic audit with regard to the affairs of the Corporate Debtor. In the meanwhile, the Suspended-Directors after 1st CoC meeting filed an affidavit before this Bench stating that they would pay 57.50 Crores to M/s. Muthoot Fincorp Limited within 60 days with effect from 23.07.2019. 7. In view thereof, the Promoter-Directors have even sought for putting all these applications as well as decisions of the CoC on hold. Based on that affidavit, the Suspended-Directors filed two MAs, MA/865/2019 restraining the Resolution Professional from proceeding with the forensic audit and v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to 180 days of CIRP period. 11. In pursuance of the said resolution dated 30.09.2019, this Bench extended the CIRP period for another 15 days in MA/1057/2019. As no funds forthcoming from the Suspended Directors, despite CIRP was running on extension, the CoC ultimately passed a resolution on 18.10.2019 for liquidation of the company as contemplated under the IBC. 12. On Sec.19 application filed by the Resolution Professional, it appears part of the information was given to the Resolution Professional by the Suspended-Directors, as to remaining information, it has not yet come from the Suspended-Directors. 13. Since in the 5th CoC meeting held on 18.10.2019, it has been mentioned that the Resolution Professional would continue as Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the suspended director, we hereby hold that he shall proceed as stated in the affidavit but until such time, the management of the company will run as contemplated under IBC by making it clear that his affidavit will be considered without prejudice to the rights and contentions of the suspended director as well as M/s.Muthoot Fincorp Ltd. List this application as fixed earlier i.e. 23.09.2019". In the above order, it was held that the affidavit of undertaking given by the Suspended-Director Dr. Mahalingam to pay 57.50 Crores to M/s. Muthoot Fincorp Limited will not cause any prejudice to the rights of either Suspended-Directors of M/s. Muthoot Fincorp Limited. However, the Suspended-Director has failed to raise and pay the money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporate debtor, therefore all powers of the board of directors, Key managerial personnel and partners of the Corporate Debtor, as the case may be, shall cease to have effect and shall be hereby vested in the liquidator. The Personnel of the Corporate Debtor are directed to extend all co-operations to the liquidator as may be required in managing the affairs of the Corporate Debtor. The Insolvency Professional appointed as liquidator will charge fees for conduct of the liquidation proceedings in proportion to the value of the liquidation estate assets as specified under regulation 4 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and the same shall be paid to the Liquidator from the proceeds of the liq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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