TMI Blog2023 (3) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... the maximum period prescribed under Section 12 of the Code is already over taking resort to Section 33(1)(a), it is necessary to order for liquidation of the Corporate Debtor. Application allowed. - IA(IBC)/8(CHE) /2022 IN IBA/1433/2019 - - - Dated:- 15-3-2023 - JUSTICE RAMALINGAM SUDHAKAR, PRESIDENT AND SAMEER KAKAR, MEMBER (TECHNICAL) For Applicant: E. Santhanalakshmi ORDER This Application has been filed by the Interim Resolution Professional seeking the following prayer: a. to pass order of early dissolution of the Corporate Debtor on the following grounds stated herein: i. that the CD cannot be continued as going concern as it was not functional at the time of initiation of the CIRP process; ii, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the scrutiny of the MCA records it was found that the directors of the Corporate Debtor are also directors of other companies, some of which have been struck off by MCA and one another associated company is under CIRP. Despite follow up, the details of the Corporate Debtor has not been furnished to the Applicant with required certain details. Claims were received and CoC was ultimately formed and report was submitted with the Tribunal on 23.10.2021. 6. The Applicant further submits that notice has been served to the Members of the CoC and four meetings were conducted through video conferencing as well as by physically. The CoC of the Corporate Debtor comprises mainly of Financial Creditors mostly individuals and they do not want to cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are attached as at Annexure - 22 23 of the application typeset. The Interim Resolution Professional further submits that the Corporate Debtor is not a going concern and there are no employees of the Corporate Debtor as on the Insolvency commencement date. It is also submitted that the Corporate Debtor was not viable for resolution and liquidation, since the showroom was vacated and assets were disposed off much before the commencement of CIRP. 9. Heard the Counsel for the Applicant and it is relevant to reproduce Section-54 of the Insolvency and bankruptcy as follows: 1. Where the assets of the corporate debtor have been completely liquidated, the liquidator shall make an application to the Adjudicating Authority for the dissol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess 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 announcement stating that the corporate debtor is in liquidation; and (iii) require such order to be sent to the authority with which the corporate debtor is registered. (2) Where the resolution professional, at any time during the corporate insolvency resolution process but before c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate Debtor, to carry out the liquidation process subject to the following terms of the directions. a) The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 and the attendant Rules and Regulations including Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 as amended upto date enjoined upon her. b) The Liquidator shall issue the public announcement that the Corporate Debtor is in liquidation. In relation to officers/ employees and workers of the Corporate Debtor, taking into consideration Section 33(7) of IBC, 2016, this order shall be deemed to be a notice of discharge. c) The Liquidator shall investigate the financial affairs of the Corporate Debtor particularly, in relation to preferen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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