In the matter of Rahul Commerce Pvt. Ltd.
- CitationIA(I.B.C)/413(KB)2022 in C.P. (IB) /1121(KB)2019
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority, having regard to the Code's 180-day CIRP period, may grant a further exclusion of time from that calculation where the resolution professional has shown sufficient cause for the delay, and in doing so may direct the initiation of liquidation under Chapter III of the Code where the Committee of Creditors has approved liquidation and there has been no material progress in the corporate insolvency resolution process. On the Committee of Creditors' approval of liquidation with 100% voting share, the Adjudicating Authority may order the commencement of liquidation where the resolution process has stalled and no material progress is possible, and in doing so is to direct the consequential steps prescribed by the Code, including the vesting of management powers in the liquidator, the moratorium under section 33(5), and notice to the Registrar of Companies.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
CORAM: 1. HON’BLE MEMBER(J), SHRI RAJASEKHAR V.K. 2. HON’BLE MEMBER(T), SHRI BALRAJ JOSHI ATTENDANCE-CUM-ORDER SHEET OF THE HEARING ON 24THMAY, 2022, 10:30 A.M WIPROLTD. IN THE MATTER OF VSRAHULCOMMERCEPVT.LTD UNDER SECTION IBCUNDERSEC9
Appearance(via video conferencing) Mr. RahulAuddy,Advocate }forresolution professional Mr. AdityaGooptu, Advocate Mr. NiharRanjanNayak,RP ORDER IA(I.B.C)/413(KB)2022
1. Ld Counsel fortheapplicant present. 2. The CIRP of the corporate debtor commenced on 16th March, 2020 vide the said order of admission and the applicant herein was appointed as Interim Resolution Professional. 3. The applicant had filed an application on 4th February, 2022 praying for exclusion of 544 days from the calculation of the 180 days CIRP period. The said petition was numbered as IA 124/KB/2022. The said application was listed on 10th February, 2022 when this Adjudicating Authority directed the exclusion of 550 days from the calculation of 180 days CIRP period. The CIRP period has expired on 14th March, 2022. 4. After the exclusion was granted, the 4th CoC meeting was held on 24th February, 2022 when the progress was chalked out and the way ahead was decided. However due to the continuous ill health and non-participation of the Director in the CIRP of the corporate debtor, there was no progress from 10th February, 2022 till March, 2022. The180days period concluded on14thMarch, 2022.
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5. Since there was no progress in the CIRP and since there could not be any material progress in the CIRP of the corporate debtor, the CoC in its 5th CoC meeting held on 5thApril, 2022approvedtheliquidation with100% votingof theCoC. 6. After considering the submissions advanced by the learned counsel for the resolution professional we hereby grant exclusion of 30 days in calculating 180 days CIRP and direct to initiatetheliquidationof thecorporatedebtor. 7. TheRPhas givenconsent to act as liquidator. 8. The liquidator shall initiate liquidation process as envisaged under Chapter-III of the Code and the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations,2016. 9. Public Notice shall be issued in the same newspapers in which advertisements were issued earlier, i.e., Financial Express (English) and Ek Din (Bengali) (Kolkata edition), statingthat the Corporate Debtoris in liquidation. 10.All the powers of the Board of Directors, and of key managerial persons, shall cease to exist in accordance with section 34(2) of the Code. All these powers shall henceforth vest in theLiquidator.
11.The personnel of the Corporate Debtor are directed to extend all assistance and co-operation to the liquidator as required by him in managing the liquidation process of theCorporate Debtor. 12.On initiation of the liquidation process and 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, as provided insection 33(5) oftheCode. 13.In accordance with section 33(7) of the Code, this liquidation order shall be deemed to be a 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 theliquidationprocess bytheLiquidator. 14.In terms of section 33(1)(b)(iii), the Liquidator shall file a copy of this Order with the Registrar of Companies, West Bengal, Kolkata, within whose jurisdiction the Corporate Debtor is registered. Additionally, the Registry shall also forward a copy of thisOrder to theRegistrar ofCompanies, WestBengal.
15.The Registry is directed to send e-mail of the order forthwith to all the parties and theirlearned counsel forinformation and fortaking necessary steps.
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16.Certified copy of this order may be issued, if applied for, upon compliance of all requisiteformalities. 17.The application bearing IA(IBC) 413/KB/2022 shall stand disposed of in accordance withthe abovedirections. 18.List this main CPon26.07.2022for reporting progress.
BalrajJoshi RajasekharV.K. Member(Technical) Member(Judicial)
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