TMI Blog2022 (10) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... take decision to liquidate the Corporate Debtor, any time after its constitution and before confirmation of the resolution plan. The power given to the CoC to take decision for liquidation is very wide power which can be exercised immediately after constitution of the CoC. The reasons which has been given in Agenda Item 1, it is made clear by the CoC that the Corporate Debtor is not functioning for last 19 years and all machinery has become scrap, even the building is in dilapidated condition and the CIRP will involve huge costs. We are not convinced with the submission of learned counsel for the Appellant that the CoC s decision is an arbitrary decision. CoC is empowered to take decision under the statutory scheme and when in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Resolutions: The representatives of the COC conveyed to RP that since the Corporate Debtor was non-functional and completely shut since the year 2002, its machinery has almost become scrap with some land and building which is also in a dilapidated condition, plus it is not a going concern since last about 19 years and there is also no possibility of it being a going concern in near future. Therefore, in such circumstances, continuation of CIRP would only involve more expenses and cost without any corresponding advantage. 4. However, the withdrawal by the CoC is not permissible under Section 10 since it was application by the Corporate Debtor itself on which IBC proceeding was initiated, hence, the CoC in Agenda Item 2 took decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). 2[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 subsection (1) of section 21 and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum.] 7. The Explanation under Section 33 (2) has been inserted by Act of 26 of 2019 contains the legislative declaration and intention. The CoC in the Legislative Scheme has been empowered to take decision to liquidate the Corporate Debtor, any time after its constitution and before co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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