In the matter of LI Digital Payments Private Limited

IN THE NATIONAL COMPANY LAW TRIBUNAL NEW DELHI BENCH (COURT – II) Item No. 209 IB-656/ND/2020 IA-5769/2023, IA-4906/2022, IA-390/2023 IN THE MATTER OF: Faihzan Khan … Applicant/Petitioner Versus M/s. LI Digital Payments Private Limited … Respondent Under Section: 9 of IBC, 2016 Order delivered on 13.03.2025 CORAM: SH. ASHOK KUMAR BHARDWAJ MS. REENA SINHA PURI HON’BLE MEMBER (J) HON’BLE MEMBER (T) PRESENT: For the Applicant : For the Respondent : Ms. Charu Sangwan, adv. with Mr. Shubham Dayma, adv., Mr. Harshita Tyagi for R-3 & 6 For the RP : Adv. Chetanya Kapoor Hearing Through: VC and Physical (Hybrid) Mode ORDER IA-5769/2023: Ld. Counsel for the RP is not prepared with the submissions to be put forth in the matter. At his request, the hearing is deferred to 15.05.2025. IA-4906/2022: As prayed by the Ld. Counsel for the respondent No. 3 & 6, two weeks’ time is granted for filing reply on behalf of the respondent No. 6. There is no appearance on the behalf of other respondents. In the wake, the proceedings qua them are set ex parte. List on 15.05.2025. IA-390/2023: The prayer made in the captioned application reads thus:- “(a) To pass an Order under Section 33(1) and 33(2) of the Insolvency and Bankruptcy Code, 2016 allowing the liquidation of the Corporate Debtor, namely M/s. LI Digital Payments Pvt. Ltd.;

Ashima/Hetash (b) To pass an Order appointing any Insolvency Professional except the Applicant/ RP, Mr. Aditya Kumar, as the Liquidator as per the provisions of the Code; (c) Pass such other and further Order(s) as this Hon'ble Tribunal may deem fit and proper in the facts and circumstance of the present case and in the interest of justice.”

Ld. Counsel for the RP could draw our attention to resolution dated 16.09.2022 passed by CoC with 100% vote shares. The resolution reads thus:-

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As can be seen from the aforementioned resolution, the CoC has decided to liquidate the corporate debtor. As can be seen from the provisions of Section 33(2) of IBC, 2016 where the resolution professional at any time during the Corporate Insolvency Resolution Process, but before confirmation of Resolution Plan, intimates the Adjudicating Authority regarding the decision of the committee of creditors approved by not less than 66% of vote shares to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation process. Section 33(1) and (2) of the IBC, 2016 reads thus:-

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As can be seen from the aforementioned, once the CoC has passed resolution to liquidate the corporate debtor, this Tribunal is required to pass an order requiring the corporate debtor to be liquidated in the manner as laid down in Chapter-III of the Code. Further the course of action as mentioned in Section 33(b)(1)(2)(3) is required to be followed. In the wake of the resolution passed by the CoC, we are left with no option but to direct liquidation of corporate debtor. Ordered accordingly.

Accordingly, Shiv Nandan Sharma with Reg. No: [IBBI/IPA-001/IP- P00384/2017-2018/10641] (e-mail ID: sharmasn@gmail.com) so appointed as the Liquidator of the Corporate Debtor to carry out the liquidation process subject to the following terms of the directions inter alia:

a) The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 (viz. Sections 35, 36, 37, 38, 39 and 41 thereof) and other relevant rules and Regulations including Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 as amended up to date enjoined upon him. 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.

Ashima/Hetash c) The Liquidator shall investigate the financial affairs of the Corporate Debtor particularly, in relation to preferential transactions/ undervalued transactions and such other like transactions including fraudulent preferences and file a suitable application before this Adjudicating Authority. d) The Registry is directed to communicate this order to the Registrar of Companies, having jurisdiction over the Corporate Debtor and the Insolvency and Bankruptcy Board of India; e) In terms of section 178 of the Income Tax Act, 1961, the Liquidator shall give necessary intimation to the Income Tax Department. In relation to other fiscal and regulatory authorities which govern the Corporate Debtor, the Liquidator shall also duly intimate about the order of liquidation. f) The order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and a fresh Moratorium under section 33(5) of the Insolvency and Bankruptcy Code shall commence. h) The Liquidator is directed to investigate the financial affairs of the Corporate Debtor in terms of the provisions of Section - 35(1) of IBC, 2016 read with relevant rules and regulations and also file its response for disposal of any pending Company applications during the process of liquidation. i) The Liquidator shall submit a Preliminary report to this Tribunal within 75 (seventy-five) days from the liquidation commencement date as per regulation. 13 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016. Further such other or further reports as are required to be filed under the relevant Regulations, in addition, shall also be duly filed by him with this Adjudicating Authority. j) Copy of this order be sent to the financial creditors, Corporate Debtor and the Liquidator for taking necessary steps and for extending the Ashima/Hetash necessary cooperation in relation to the Liquidation process of the Corporate Debtor, viz., company-in-liquidation. It goes without saying that the fee of the Liquidator would be payable in terms of the provisions of Section 34 (7) of the IBC, 2016 read with Regulation 4 of IBBI (Liquidation Process) Regulation 2016.

Sd/- Sd/- (REE NA SINHA PURI) (ASHOK KUMAR BHARDWAJ) MEMBER (T) MEMBER (J)

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