This is a case digest on the NCLT Chandigarh Bench of Bank of India versus Little Bee International Private Limited in CA No.1215 of 2019 Under Section 33 (1) & (2) of the Insolvency and Bankruptcy Code, 2016. As per COC report, the liquidator will dissolve the company Regulation 32A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016 (Liquidation Process Regulations, 2016).
Petitioner-Financial Creditor.- Bank of India.
Respondent-Corporate Debtor.- M/s Little Bee International Private Limited.
Order delivered on: 26.02.2019.
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The instant application is filed by the Resolution Professional (RP) of M/s Little Bee International Private Limited (Corporate Debtor) for passing liquidation order under Section 33 (1) & (2) of the Insolvency and Bankruptcy Code, 2016 (Code).
Facts of the case:
- that a financial creditor, Bank of India filed a petition under Section 7 of the Code, which was admitted by the Adjudicating Authority (AA) vide order dated 31.05.2019 and vide the same order, the applicant Shri Narinder Bhushan Aggarwal was appointed as the Interim Resolution Professional (IRP).
- The Committee of Creditors (CoC) is stated to be constituted of two financial creditors namely Bank of India and Oriental Bank of Commerce having 69.48% voting share and 30.52% voting share respectively and that in the first meeting of the CoC, the IRP was confirmed as RP.
- It is submitted that the RP appointed two registered valuers as well as forensic auditors.
- that the 8th meeting of the CoC was conducted on 25.11.2019 where the specific agenda at item No.1 was to discuss and vote on the liquidation of the Corporate Debtor and that the CoC unanimously approved the agenda for the liquidation of the Corporate Debtor as no resolution applicant has come forward and there is no expectation of any resolution plan coming forward.
- that vide the same agenda, the applicant has also been approved to be appointed as Liquidator and that his written consent to act as Liquidator is attached as Annexure A-10.
- It is prayed that an order be passed requiring the Corporate Debtor to be liquidated in a manner as laid down in the Code, public announcement be issued stating that the Corporate Debtor is in liquidation and order be passed requiring sending of the liquidation order to the authority with whom the Corporate Debtor is registered.
- Vide order dated 06.02.2020, it was inter alia noted that no Form G was published in this case, but the same is not reflected in the record.
- Vide diary No.1095, dated 10.02.2020, the RP has filed an affidavit disclosing that no Form G was published by the RP during the CIRP process since the suspended directors of the Corporate Debtor were not cooperating with the RP.
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Findings of the Court:
- The instant application for liquidation of the Corporate Debtor was filed on 05.12.2019 i.e. after the last date.
- This application was filed on 29.11.2019 i.e. after the last date of CIRP.
- The requirements of Section 33 (2) of the Code are not satisfied since the application before the AA for liquidation of the Corporate Debtor was not filed during the CIRP. The instant application is, therefore, being considered under Section 33 (1) (a) of the Code.
- In the present case, the RP has filed affidavit deposing that no Form G was published during the CIRP process since the suspended directors of the Corporate Debtor were not cooperating with the RP and have not provided the information as sought by the RP for carrying on the CIRP process and did not provide detail of any of the assets of the Company as well.
- In the present case, the CoC has agreed to Mr. Narinder Bhushan Aggarwal, RP to act as Liquidator as per his written consent. The written consent of Mr. Narinder Bhushan Aggarwal is dated 21.11.2019
- The recommendations of the CoC are being taken into consideration for the purposes of Regulation 39B to 39D of the CIRP Process Regulations, 2016.
- The CoC with 69.48% voting share has approved the contribution of the estimated expenses on the liquidation by the financial creditors in an escrow account in the ratio of their claims.
- The Liquidator will, therefore, take action under Regulation 32A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016 (Liquidation Process Regulations, 2016).
- The fees fixed by the CoC are not in consonance with Regulation 39D. Therefore, the fee payable to the Liquidator shall be as per Regulation 4 (2) and (3) of the Liquidation Process Regulations, 2016.
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Order:
The Liquidator shall publish public announcement in accordance with Regulation 12 of the 2016 Regulations and in Form B of Schedule II of these Regulations within five days from receipt of this order calling upon the stake holders to submit their claims as on liquidation commencement date and provide the last date for submission of claim which shall be 30 days from the liquidation commencement date.
In accordance with Regulation 13 of the 2016 Regulations, the Liquidator shall file his preliminary report within 75 days and to file regular progress reports as per Rule 15 of the 2016 Regulations thereafter.
The Liquidator shall take into his possession the assets of the Corporate Debtor.
CA No.1215/2019 stands disposed of.
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For case specific advice, please contact best/top/expert NCLT Chandigarh Bench Lawyers Advocate in Chandigarh Panchkula Mohali Zirakpur Kharar Derabassi (Punjab Haryana).
This post is written by Rashika Garg. More on 99888-17966.
