In the matter of R.E. Cables & Conductors Private Limited

Appearances: For the Applicant: Ms Padmasri Appana, Resolution Professional along with Ms JVL Bharati, Advocate

Heard on: 12.09.2019

NClT HYD BENCH I.A. No. 7600(2019 IN CJ' ([B)NO.539I9IH[)BI2018 2 PER: 8HRr NARENDER KUMAR BHOLA MEMBER (TECHNICAL) BRIEF OF THE CASE: 1. Under consideration before us is the application filed by Resolution Professional un~er sec 33(2) of the Insolvency and Bankruptcy Code. 2016, seeking orders for liquidating the Corporate Debtor Mis. RE Cables and Conductors Private Limited and further to appoint the Resolution Professional! Applicant herein to act as Liquidator.

AVERMENTS: , The facts apropos to the Application ill briefaxe:­ This Tribunal had admitted the Petilio~ bj~ring No. CP aB) NO. 5391 9IHDB/20lB filed by M~a1~a Chemicals Private Limited under Section 9 of Insolvency & Bankruptcy Code. 2016 on 05.12.2018 and initiated Corporate Insolvency Resolution Process (CIRP) against Corporate Debtor :M/s RE Cables and Conductors Private Limited. The Applicant herein was appointed Inteli.m Resolution Professional (mp) who was subsequently confirmed as Resolution professional. In all, the Resolution Professional conducted 12 CoC meetings.

2) Pursuant to above order of this Tribunal. the Applicant issued Public announcement, in Business Standard in English and Nava Telangana Paper in Telugu daily News Papers on 08.12.2018, inviting Claims by19.12.2018. 3) In response to tbe Public announcement and after collation of the claims received, tbe Committee of Creditors (COe) was constituted as per Sec 21 of the Insolvency and Bankruptcy Code, 2016 as under, which was informed to this Tribunal on 28.12.2018 - ­ .­

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The detuils of claims received from operational creditors or government authorities and details of amount admitted are

4) The Resolution Professional ! Applicant berein conducted 12 CoG-meetings as under> lnCoC 03.01.2019 2nd COC 07.01.2019 3" COC 28.01.2019 4th COC 27.02.2019 5th COC 12.04.2019 6th COC 24.04.2019 7th CoC 14.05.2019 8th CoC 28.06.2019 9"'COC 17.07.2019. 10'" COC 07.08.2019 11'" COC 13.08.2019 12th CoC 19.08.2019 cac coe 5) In the 3td meeti.ng held on 28.01.2019 tho members of lRP as ~~~;

NClT HYD BENCH I.A. No. 7GOoUOl9 IN CP (IB)NO.6391MiDMOI8 4 appointing two registel·ed valuers viz. K. Dhanapathi Rao & Co. and Mr. Veera Prathap Reddy to deter.ro.ioa the fair value and liquidation value of the assets of tha C011Jorate Debtor assets.

6) As required under Regulation 36A (1), the Applicant issued publication in Form-G inviting expression of interest in Business Standard and Nava Telangana newspapers. The Resolution Professional received Expression Of Interest (EOn from Mis Arrow Cables Limited, MIs. Kamini Metalliks Limited and MIs Radha Smeltars private Limited.

7) In the 6th CoC Meeting held on 24.04.2019, the members deliberated and approved the Information Memorandum and Evaluation Matrix to be issued to prospective Resolution Applicants. cae 8) In the 12th COC meeting held on 19.08.2019, the members evaluated the Resolution Plan submitted by Mis Arrow Cables limited and in the e-voting held from 23.0B.2GJ.9 to 28.08.2019, 89% of the CoC voted against the A'''''''''' .~' plan. CDC Minutes dated 19.8.2019 is marked as Annex.ure .f;>-:;l~,~l~~ . 2). F~ther as per Regulation 3.9 C of IBBI (CIRP) c,~~.I'"'. y~ ~0.r ~~ ~FJ.?;. *'~~ gulatl~ns, COC made the grOUplllg of assets of the tr"~ i;;:~': ~ ~ rpol"a~ Debtor as follows, which has been approved by * ~g~~ .,~* * oCwit~ 100% majority.: ~ .0: ~¢:.~ ';, :-.. .....,....,*$It:' UN! ,1 ~. T 2 &: 3 as 1 group: Unit 2' Admeasuring 4050 sft (RCC) and 8100 sft (ACC) situated at plot no. 29 (western part) admeasuring 1209 sq. yards with RCC structure and ACe sheds thereon at Sy. No. 35, Block no.9, Shed No.IO, APllC Phase-t, IDA Cbcrlapally, GhatkesarMandal, Kapra Municipality, Ranga Reddy District, Hyderabad ·500051, belonging to Mis R.E. Cables & Conductors Pvt. Ltd..(SBI). Unit 3: Shed no. 10-22, Plot No. 25/A admeasuring 1067 sq. Yds, with built up area 7854.00 sft with industrial sheds thereon at Sy. No.35, Block No.9, AFHG Phase-I, IDA, ~ - .~ --~

NCl T HVO BENCH LA N.... 1GOo(2019 IN c.pQB)NQ.$$9I'J/HDBI2018 5 Cherlapaliy, GhatkesarMandal, Kapru Municipality, Ranga Reddy District, Hyderabad -500051 belonging to Mis "R.E. Cables & Conductors Pvt. Ltd.(SBI) UNIT 4 plant at Rampally : as a separate unit It is more described as Industrial shed at Survey no. 223, North & West Side part, measuring 7705.13 sq. yards at Rampally Village, Keesara MandaI, Ranga Reddy district. Hyderabad - 500098 belonging to Mis R.E. Cables & Conductors Pvt. Ltd <SBO Nacharam Property as separate unit

Description of the property ReC building (consisting of Ground, Itt & 2nd floors) Plot uo. Al2811114D (Pump and Room land), admeasuring 476.68 sq. Yard.s (Plinth area 9000 i.e., 8ft. 3000 sit in each floor) 8S given in floor map, situated at industrial park, Nacharam, APllC-lALA, Nacharam Municipality, Uppal, Rangareddy district, Doc no. 12459/2013, SRO, Uppal. Together with fittings and fixtw'es unnexed theretol building structure standing thereon belonging to MIs R.E. Cables & Conductors Pvt. Ltd. whic.h is exclusively charge given to RBL. 9. Since., 89% of voting share of CoC voted against tho Resolution Plan, the Applicant herein moved tms Application under Section 33 (2), seeking orders for liquidating the Corporate Debtor Company. It is further averred that 270 days erRP period came to an end 01.09.2019. The Applicant also requested to condone delay of two days in filing this Application caused due to holidays from 31.08.2019 to 02.09.2019. 10. The Applicant herein also requested the Tribunal to appoint her as a liquidator under Sec 34(4)(c) and Sec 34(S} of the Insolvency and Bankruptcy Code, 2016.

11. We heard Counsel for Resolution Professional. The Present Application is filed by the Resolutiou Profe~ai1onal under Section 33(2), Section 34(1) & Section 60(5) of. the Code secking initiation of liquidation process of MI~. RE Cables and Conductors Private Limited (Corporate Debtor).

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12. The Resolution Professional infor:med the CoC that she received only three Expression of Interest and Resolution Plan received from Mis Arrow Cables Limited was put for e"voting. As per the result of the e-voting on 28.08.2019, coe, the COC members with 89 % of the voting share in the voted against Resolution Plan submitted by Ws Arrow Cables Limited and the Resolution Plan accordingly stands rejected by the COCo The CIRP period of 270 days came to an end on 01.09.2019. Hence. the COC passed a resolution for liquidating the Corporate Debtor Company. 13. Section 33 of Insolvency and Bankruptcy Code, 2016 road as follows: (1) Where the Adjudicating Authority, ­ (a) before the expiry of the insolvency resolution process period or the maximum period permitted f01" completion of the corporate insolvency resolution process under section 12 or the fast track corporate insolvency resolution process under section 56, as the case may be, does not receive a resolution plan undel" sub·section (6) of section 30; or (b) rejects the resolution plan under sectioD 31 for the non"compliance of the requirements specified ~ therein, it shall-pass an order requiring tho corporate debtor to be liquidated in the mannel·as laid down in this Chapter; (U) issue a public announcement stating that the corporate debtor is in liquidation; and, "I~.-I ··;i"fJ"(iii) require such order to be sent to the authority with i't'!'. .• which the corporate debtor is registered.

14. As per Section 33(1) (a) of the Code, ifthe Resolution Plan is not received under Section 30(6) with in CIRP·period, the Tribunal has no other option but to pass a liquidation order. The Resolution Professional has not filed any Resolution Plan before this TribWl.al under Section 30(6) witb in CIRP period and the Resolution Plan submitted by the MIs Arrow coe Cables Limited was rejected by the with 89% voting share. By relying on Section 33(1)(a) of the Code, the NeLl HVD BENCH fA No. 1GOof2019 "' CP UB>NO.6391!1HD8I2011i 7 Resolution Professional having not ~ubmjtted any Resolution Plan within CIRP period leads to passing an order of liquidatiou. We see no other alternative except passin!Z an order of liQ.uidation J'equirin~ the Corporato Debtorl RE Ca.bl~s &_Cond~ctors Pvt Ltd! to be liquida.ted iri the manner laid down in Chapter 3 of Part 2 of the Insolvency and Bankruptcy Code, 2016. 15.. As per Section 34(1) ofthe Code after paRsing the o:r:;der of liquidation ofcorporate Debtor, the Resolution Professional appoin~d for CIRP Process shall act as Liquidator for conducting Liquidation Process.

Accordingly Mrs. Padmasri Appana having Registration No. IBBlJIPA­ 002lJP-N0022012017-18l10672 is appointed as the Liquidator. The Resolution Professional has given her consent for appointing ber as a liquidator.

ORDER 16. In the result, the ApplicatlOn is allowed and Corpol'ate Debtor RE Cables & Conductors Pvt Ltd\ ordered to be llquidatl:! d. 17. The Resolution Professional Mrs. Padmasri Appanu, is app'~ted as the Liquidator to continue the Liquidation ProCess who has given her (...'oosent on 13.09.2019. The Liquidator is directed to proceed with the process of liquidation in manner laid down in Chapter Tn of Part 2 of the Insolvency and Bankruptcy Code, 2016 by following tbe liquidation process given in IBBI (Liquidation Process) Regulations, 2016. .,':"{ 19. . ~ j\ll: powers of the Board of Directors. key managerial personnel and the partners of the Corporate Debtor. as the case may be. shall cease to have effect and shall be vested in the Liquidator. 20. The Liquidator is directed to issue Public Announcement stating that the Corporate Debtor is liquidation, in terms of Regulation 12 of the IBBI (Liquidation Process) Regulations, 2016. 21. Tho Order of Moratorium passed under Section 14 of the Code sball cease to have its effect.

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22. This order is deemed to be a notice of discharge to the officers, employees and the workmen of the Corporate Debtor as per Section 33(7) of the Code. 23. Since Liquidation order has been passed no ;suit or other legal proceedings shall be instituted by or <:I.g:ainst the Corporate Debtor, save aod except as mentioned in Section 52 of the Code, as to institution of legal proceedings by the Liquidator, ho is at liberty to initiate suit or legal proceedings with prior approval of this Adjudicating Authority, but this direction shall not apply to legal proceedings in relatioll to such transactions as may be notified by the Central Government in consultation with aoy financial sector regulator. 24. We hed\,y direct that the fee shall be paid to the Liquidator as envisaged under Regulation 4 of IBBl (Liquidation process) Regulations, which forms part of the liquidation

. . The Application is disposed of accordingly. ~- 0Ulw 1 4 - ---­ -Z-f> 51 \ NARENDE~lJJLA RATAKONDA MURALI MEMBER (TECHNICAL) MEMBER (JUDICIAL)

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