In the matter of Lanna Wellness Pvt. Ltd.
- CitationIA No. 1532 of 2020 in CP(IB) 3608/I&BP/2019
Ratio decidendi
The rule this decision rests on
Where the Committee of Creditors has, at its second meeting, resolved to liquidate the corporate debtor on the ground that there are no realisable assets, and has directed the resolution professional to seek liquidation orders under sections 33(1)(a) and 34(1) of the Code, the Adjudicating Authority may approve that resolution and order liquidation of the corporate debtor, the approval being given in the exercise of its power under section 33 of the Code on the basis of the Committee's resolution. Upon such an order, the powers of the board of directors, key managerial persons and partners of the corporate debtor cease and vest in the liquidator, and the liquidator is to conduct the liquidation under Chapter III of the Code and the Liquidation Process Regulations, with the moratorium-related restriction on institution of suits or proceedings by or against the corporate debtor under section 52 applying save for proceedings instituted by the liquidator with prior approval of the Adjudicating Authority.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
1. This is an application filed by RP. Counsel for the RP present and RP is also present in person. 2. CIRP against the Corporate Debtor commenced on 16.12.2019. 3. In the 2nd meeting of CoC held on 19.08.2020, it was resolved that liquidation process be commenced and following resolution was passed:
“Resolved that The Committee of Creditors, at their second meeting held on 19.08.2020, approved the initiation of liquidation of the Corporate Debtor and hence Resolution Professional is hereby directed to file interlocutory application and seek the further direction and order under section 33(1)(a) and 34(1) of the code from the Hon'ble NCLT, Mumbai as there are no realizable assets" “Further resolved that Resolution Professional Mr. Laxman Digambar Pawar Reg No: IBBI / IPA-003 / IP-N00015 /2017-18 / 10104 be appointed as liquidator and his fees will be as prescribed under IBC,
2016 as per regulation 4(3) of IBBI (Liquidation Process) Regulation, 2016."
4. In view of the resolution of the CoC on 19.08.2020, the Bench hereby approves the resolution and orders liquidation of Corporate Debtor as follows:
a. that the Corporate Debtor be liquidated in the manner as laid down in the Chapter III of the Code by issuing Public Notice stating that the Corporate Debtor is in liquidation with a direction to the Liquidator to send this order to the ROC under which this Company has been registered. b. that, Mr. Laxman Digambar Pawar Reg No: IBBI / IPA-003 / IP- N00015 /2017-18 / 10104 Resolution Professional herein is hereby appointed as Liquidator as provided under Section 34(1) of the Code. c. that all the powers of the Board of Directors, key managerial persons, the partners of the Corporate Debtor hereafter ceased to exist. All these powers henceforth vest with the Liquidator. d. that the personnel of the Corporate Debtor are directed to extend all co-operation to the Liquidator as required by him in managing the liquidation process of the Corporate Debtor. e. that the Liquidator will charge fees for conduct of the liquidation proceedings in proportion to the value of the liquidation estate assets as specified by the IBBI and the same shall be paid to the Liquidator from the proceeds of the liquidation estate under Section 53 of the Code. f. 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. g. that this liquidation order shall be a deemed to be notice of discharge to the officers, employees and workmen of the Corporate Debtor except to the extent of the business of the Corporate Debtor continued during the liquidation process by the Liquidator.
5. Accordingly, this Misc. Application is hereby allowed directing the Liquidator appointed in this case to initiate liquidation process as envisaged under Chapter-III of the Code by following the liquidation process given in the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
Sd/- sd/-
CHANDRA BHAN SINGH SUCHITRA KANUPARTHI Member (Technical) Member (Judicial)
26.10.2020 /n/
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