Anuja Beri vs I.E.Trading Company Pvt. Ltd & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 162 of 2020
Ratio decidendi
The rule this decision rests on
The Tribunal reasons that where the Committee of Creditors has recommended liquidation with unanimous voting share, the Corporate Debtor has had no business operations or operating revenue for over five years, has no employees and no tangible assets, a resolution within the 180-day period is not possible, and continuing to wait for that period would be an exercise in futility; the Adjudicating Authority was therefore left with no option but to admit the Resolution Professional's application for liquidation. It is settled that even at the liquidation stage, recourse may be had to Sections 230 and 232 of the Companies Act, 2013 for an arrangement or compromise that may save or protect the Corporate Debtor and render it a commercially viable company, and a person eligible under those provisions may float such a proposal.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
O R D E R
28.01.2020 Heard Learned counsel for the Appellant for a while. It appears
that the 'Committee of Creditors' in its 3rd meeting held on 20th October, 2018
recommended liquidation of the 'Corporate Debtor'. This was done with 100%
voting share after taking into consideration that the 'Corporate Debtor' is not
having business operations for last more than 5 years and there is no operating
revenue. It is not disputed that the 'Corporate Debtor' does not have any
employee also.
In this scenario, in our considered opinion it would be an exercise in
futility to wait for the resolution period of 180 days as no resolution was possible,
more so, as the 'Corporate Debtor' has no tangible assets.
In the situation the learned Adjudicating Authority (National Company
Law Tribunal) New Delhi Bench- IV was left no option but to accept the
Application of 'Resolution Professional' for sending the 'Corporate Debtor' into
liquidation.
Learned counsel for the Appellant submits that he is eligible to submit an
arrangement / compromise in terms of provisions of Section 230 and 232 of the
Companies Act.
-2-
It is well settled by now that even at the liquidation stage recourse can be
had to provisions of Section 230 and 232 of the Companies Act, 2013 for an
arrangement / compromise which may save / protect the 'Corporate Debtor' and
turn it around as a Commercially viable Company. If the Appellant is eligible, he
will be entitled to float proposal for such arrangement / compromise.
Mr. Binod Chaurasia, Advocate representing the liquidator submitted that
as per his information the Appellant is eligible unless something bearing upon
his eligibility is discovered at the relevant time. In case the Appellant intends to
float a proposal for arrangement / compromise, he may do so within the
prescribed time lines.
The Appeal is accordingly disposed of.
[Justice Bansi Lal Bhat] Member (Judicial)
[Vijai Pratap Singh] Member (Technical)
[Shreesha Merla] Member (Technical)
R N/ n n/
Company Appeal (AT) (Insolvency) No. 162 of 2020
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