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TMI Blog2024 (10) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred to as "the Code"). Facts of the case (in brief): 2. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process ('CIRP') vide Order dated 08th October, 2018 passed u/s 7 of the Code in the above-captioned Company Petition and the Applicant herein was appointed as the Interim Resolution Professional ('IRP') and thereafter confirmed as the Resolution Professional ('RP') by the Committee of Creditors ('CoC') in their 01st CoC Meeting dated November 01, 2018. 3. On account of the alleged fraud perpetrated by the Corporate Debtor and its officers, the affairs of the Corporate Debtor are subject to probe by multiple law enforcement agencies such as the CBI and ED. The Directorate of Enforcement have pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned reasons, the Applicant has thus far been unable to take custody and control of the assets of the Corporate Debtor and therefore has not been able to carry out various activities and actions that are required to be carried out by the IRP/RP during the CIRP of the Corporate Debtor under the Code which, inter-alia, include (i) preparation of information memorandum; (ii) appointment of registered valuer; (iii) issuance of invitation of EoI in Form G etc. 6. Accordingly, during the 05th CoC meeting dated March 28, 2019, the Applicant informed the CoC that the time period of 180 days of CIRP would expire on April 06, 2019 and in the absence of an extension of the duration of CIRP, the chances of insolvency resolution of the Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeting held on 05th April, 2019 is reproduced hereinbelow: AGENDA ITEM NO.04: "The members were of the view that there was little possibility of getting a Resolution Plan or a Resolution Applicant to take over this Company as the Company does not have running business, all the assets of the Company are seized/attached by various governmental agencies such as Enforcement Directorate, the Company has been involved in a huge fraud, various agencies are investigating its affairs, and a number of cases are pending against it. Therefore, it may not be appropriate to the approach the Hon'ble NCLT for extension in the CIRP period. The CoC also discussed the issues relating to assets monetization, in the wake of attachment over assets and expre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Eighth CoC Meeting held on August 01, 2019, the committee resolved to appoint Mr. Santanu T. Ray to act as the Liquidator of the Corporate Debtor and the written consent of Mr. Santanu T. Ray to act as the Liquidator of the Corporate Debtor has also been placed on record. The Financial Creditor has also filed M.A. No. 2740 of 2019 before this Tribunal proposing the name of Mr. Santanu T. Ray in place of Mr. Vijay Kumar Garg, to act as Liquidator of the Corporate Debtor. 13. The Hon'ble Supreme Court in the matter of K. Sashidhar Versus Indian Overseas Bank & Ors (Neutral Citation: 2019 INSC 148, Vide Judgment dated February 05, 2019 in Civil Appeal No. 10673 of 2018) has held that the decisions of CoC based on its commercial wisdom a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide order dated 08.10.2018 in CP(IB) No.3585/NCLT/MB/2018, henceforth ceases to exist from the date of the order of liquidation; v. That on having liquidation process initiated, subject to Section 52 of the Code, no suit or other legal proceeding shall be instituted by or against the Corporate Debtor, save and except the liberty to the liquidator to institute suit or other legal proceeding on behalf of the Corporate Debtor with prior approval of this Adjudicating Authority; vi. All the powers of the Board of Directors, key managerial persons, the partners of the Corporate Debtor, as the case may be, hereafter cease to exist. All these powers henceforth vest with the Liquidator. The personnel of the Corporate Debtor are directed to ext ..... X X X X Extracts X X X X X X X X Extracts X X X X
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