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TMI Blog2019 (11) TMI 1763X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter referred as the "Code") for issuance of directions for liquidation of the corporate debtor, M/s Case Cold Roll Forming Limited. 2. The facts in brief are that the financial creditor, Oriental Bank of Commerce, had filed an application under Section 7 of the Code bearing number IB-473(PB)/2018 for initiation of Corporate Insolvency Resolution Process against the corporate debtor, M/s Case Cold Roll Forming Limited. The said application was admitted by this Tribunal on 11.12.2018 initiating Corporate Insolvency Resolution Process against the corporate debtor M/s Cold Roll Forming Limited and there in appointed Mr. Sanjay Gupta, as the Interim Resolution Professional. 3. In pursuance of Regulation 6(1) of the Insolvency and Bankruptcy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed prospective resolution applicants for submission of the Resolution Plan for the Corporate Debtor in Hindustan Times New Delhi and Mumbai Edition and the Tribune in Chandigarh on 11.02.2019 with the last date for submission of EOI as 26.02.20 19 and last date for submission of resolution plan as 25.05.2019. 8. As only one EOI was received that to not in the requisite form, with the approval of Committee of Creditors again a revised Form G was published on 27.02.2019 with the last date of submission of Resolution Plan as 28.04.2019. 9. It is stated in the application that pursuant to the publication in Form G, three expression of interests have been received by the applicant for the corporate debtor form the following prospective resolut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passu charges on the property and Plant & Machinery of the Corporate Debtor with other lenders. Further, the resolution applicant was to be free to transfer/mortgage the pari passu charges on the said property to repay the dues. It is submitted that the members of the Committee of Creditors disagreed on the said clause and requested the resolution applicant to remove the same and to submit another revised resolution plan by 1st July 2019. That the CoC further requested the resolution applicant that, if the resolution plan is submitted jointly then the declaration and affidavit need to the submitted by each resolution plan applicant as mentioned in the EOI published dated 11th February 2019. 14. Subsequently in the thirteenth meeting of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Global Ventures Private Limited was not financially viable plan and no other resolution applicant has shown any interest in the submission of the resolution plan. Therefore, the members of the Committee of Creditors observed that it is in the best interest of all stakeholders to liquidate the Corporate Debtor. 17. The applicant resolution professional has given his consent to act as liquidator of Corporate Debtor, which was also duly approved by Committee of Creditors with 100% voting share. 18. Respondent No. 2 one of the suspended directors of the corporate debtor only has raised objection mainly with the contention that the offer made by the resolution applicant was more than the liquidation value and therefore should have been accepte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors (approved by not less than sixty-six percent of the voting share) to liquidated the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub- clauses (i), (ii) and (iii) of clause (b) of sub-section(1)." 22. Therefore, upon failure of resolution process there being no approved resolution plan by Committee of Creditors, liquidation has to follow as recommended by the Committee of Creditors. Adherence to statutory requirement has to be in toto. When the language of the Code is clear and explicit the Adjudicating Authority must give effect to it whatever may be the conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r III of Part II of the Insolvency and Bankruptcy Code, 2016 and in accordance with the relevant regulations. f. Liquidator is directed to act in terms of the decision of Hon'ble Appellate Tribunal passed in Company Appeal (AT) (Ins.) No. 224 of 2018 in the matter of Y. Shivram Prasad v.. S. Dhanapal decided on 27.02.2019 inter alia to ensure that the corporate debtor remains a going concern as far as possible. g. The liquidator shall follow up and investigate the financial affairs of the corporate debtor in accordance with provisions of Section 35 (1) of the Code. h. The liquidator shall also follow any pending application for its disposal during the process of liquidation including initiation of steps for recovery of dues of the Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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