In the matter of Stalwart International Trading Private Limited

IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH – II, CHENNAI IA (IBC)(LIQ.)/ 13 (CHE) / 2024 IN CP (IB) / 192 (CHE) / 2022 (Under Section 33(2) & 34(5) of Insolvency & Bankruptcy Code, 2016 r/w Rules 11 & 32 of NCLT Rules, 2016) In the matter of M/s. Stalwart International Trading (P) Ltd

Mr. P. Eswaramoorthy Resolution Professional of M/s. Stalwart international Trading Private Limited, 44/1, 5th Street, Ramalinga Jothi Nagar, Near Corporation Office, Najundapuram road, Ramanathapuram, Coimbatore- 641 045. … Applicant Order Pronounced on 25th October 2024 CORAM SHRI JYOTI KUMAR TRIPATHI, MEMBER (JUDICIAL) SHRI RAVICHANDRAN RAMASAMY, MEMBER (TECHNICAL) Present For Applicant: Mr. B.Dhanaraj, Mrs. Deepa Mariappan, Advocates ORDER (Heard through hybrid conferencing) 1. IA(IBC)(LIQ.) / 13(CHE)/2024 in CP (IB)/192 (CHE)/2022 is an application filed under section 33(1) & 34(5) of the Insolvency & Bankruptcy code, 2016 (herein after termed as “the Code”) by Mr. P. Eswaramoorthy, RP of M/s. Stalwart

International Trading (P) Ltd i.e. the Corporate Debtor (hereinafter referred as “CD”) seeking following reliefs as follows,

IA(IBC)(LIQ.) / 13 (CHE)/2024 IN CP (IB)/192 (CHE)/2022 - P. Eswaramoorthy In the matter of M/s. Stalwart International Trading Private Limited 1 OF 8 “1. To Pass an Order of liquidation of the Corporate Debtor “Stalwart International Trading (P) Ltd.,”. 2. To direct the Insolvency and Bankruptcy Board of India (Board), to propose the name of another Insolvency Professional to be appointed as a Liquidator of the Corporate Debtor; 3. To pass such further or other orders as may be deemed fit and proper in the facts and circumstances of the case and thus render justice. 2. M/s. Stalwart International Trading (P) Ltd., the corporate debtor, was admitted to Corporate Insolvency Resolution Process, (hereinafter referred as “CIRP”)

vide an order dated 12.12.2023 passed by this Adjudicating Authority and applicant herein Mr. P. Eswaramoorthy, was appointed as the Interim Resolution

Professional of the CD.

3. Heard the Ld. Counsel appeared on behalf of the applicant and perused the records.

4. Form the Compliance certificate (Form H) attached with the application the dates and events subsequent to initiation of CIRP of the CD is as follows,

S. Date Events No 1. 12.12.2023 Commencement of CIRP Publication of Public announcement in Business Standard 2. 16.12.2023 (English), and Hindu (Tamil). 3. 03/01/2024 Constitution of Committee of Creditors (CoC) by IRP 1st Committee of Creditors (herein after referred to as 4. 12.01.2024 “CoC”) meeting resolved to appoint the applicant as the RP of Corporate Debtor. 2nd Coc meeting, resolved to issue draft Form -G and was 5. 23.02.2024 published on 26.02.2024 3rd CoC meeting approved a resolution to extend the timeline 6. 25.04.2024 for submission of Resolution Plan from 13.05.2024 to 25.05.2024.

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4th Coc meeting, approved for extension of 1week to submit 7. 31.05.2024 the Resolution Plan. 8. 08.06.2024 Expiry of 180 days of CIRP 1st Extension of CIRP by 90 days till 06.09.2024 9. 21.06.2024 Vide IA (IBC)/1431 (CHE)/2024. 5th CoC meeting – the CoC with 100% voting resolved to 10. 21.06.2024 Liquidate the Corporate Debtor. Date of filing Liquidation application before this 11. 09.07.2024 Adjudicating Authority 5. It is submitted that as the CIRP Period was expiring on 08.06.2024, CoC at its meeting held on 21st June 2024 approved the agenda for extension of CIRP time limit by 90 days beyond 180 days, vide its order dated 21.06.2024. Thereafter, the CIRP Period was extended till 06.09.2024.

6. It is submitted that Applicant served an Email as well as letter on 11.01.2024 to the Suspended Director of Corporate Debtor, in seeking information such as Statutory Registers, Fixed Assets Register, Audited Financial Statements and Tally accounts until date of CIRP commencement which were required for continuing the CIRP.

7. It is stated that Shri. Sulaiman Abdul Gaffor a Suspended Director of the Corporate Debtor holds 100% voting rights in CoC.

8. It is submitted that the applicant was confirmed as Resolution Professional of the Corporate Debtor during the 1st CoC meeting dated 12.01.2024.

9. It is stated that Applicant has filed application u/s. 19(2) IBC in IA (IBC)/376 (CHE)/2024 seeking co-operation and support of Suspended Director to provide all the requirement to the Applicant for conducting CIRP. Further Applicant filed

IA (IBC)/468 (CHE)/2024 against one claimant Mrs. Dandu Lakshmi Devi for IA(IBC)(LIQ.) / 13 (CHE)/2024 IN CP (IB)/192 (CHE)/2022 - P. Eswaramoorthy In the matter of M/s. Stalwart International Trading Private Limited 3 OF 8 providing Original Title Deed and Keys of the corporate Detor’s Sole asset and further Applicant filed another application IA(IBC)/522 (CHE)/2024 against Bank of Maharashtra in seeking CD’s loan documents and Release of CD’s title Deeds, which is pending for adjudication.

10. It is submitted that the Applicant conducted 2nd CoC meeting on 23.02.2024, where it has approved Form G- Expression of Interest, which was published on 26.02.2024

11. It is further submitted that No Resolution plan received in the CoC meeting.

12. It is submitted that during the 5th COC meeting dated 21.06.2024, the CoC unanimously resolved to liquidate the Corporate Debtor and authorized the applicant/ RP to file an application. The extracts of relevant liquidation

Resolution are hereunder,

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13. It is stated that the CoC has not appointed any Liquidator in respect of this CD and thus seeks for appointment of Liquidator as per the code before this Hon’ble Tribunal. 14. It is observed that the period of maximum limit of 330 days in respect of CIRP is not completed and but before expiry of such period CoC has unanimously approved for Liquidation of CD as no information, records and documents could be collected. Therefore, the above resolution for Liquidation of the Corporate Debtor has been passed taking into consideration, the interest of the Corporate Debtor and all other stakeholders concerned. Thus, CoC directed the Resolution professional to file application for Liquidation of the Corporate Debtor.

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15. The Applicant/RP submitted FORM-H as per Regulation 39 (4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations 2016. The same is placed at Page 84 – 89 of the application. 16. After verifying the disciplinary status from the IBBI portal, we appoint

Mr. SANKAR VARADHARAJAN having Reg. No. IBBI/IPA-002/IP-

N01057/2020-2021/13449, Email id: advsankarirp@gmail.com with valid AFA till

30.06.2025 as the Liquidator for the Corporate Debtor.

17. From the above facts and circumstances, considering the decision taken by the CoC of the Corporate Debtor, this Adjudicating Authority deems it fit to order Liquidation of the Corporate Debtor. Accordingly, we order Liquidation of the Corporate Debtor i.e. M/s. Stalwart International Trading Private Limited by appointing the above Mr. SANKAR VARADHARAJAN as the Liquidator to carry out the liquidation process subject to the following terms/directions: - a. The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 and the attendant 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. 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, Concerned and the Insolvency and Bankruptcy Board of India;

IA(IBC)(LIQ.) / 13 (CHE)/2024 IN CP (IB)/192 (CHE)/2022 - P. Eswaramoorthy In the matter of M/s. Stalwart International Trading Private Limited 7 OF 8 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. g. The Liquidator is directed to proceed with the process of liquidation in a manner laid down in Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016. 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 individual 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 necessary cooperation in relation to the Liquidation process of the Corporate Debtor. 18. With the above directions, IA(IBC)(LIQ.)/ 13(CHE)/2024 IN CP (IB)/192 (CHE)/2022 stands allowed and disposed of. -Sd/- -Sd/- RAVICHANDRAN RAMASAMY JYOTI KUMAR TRIPATHI MEMBER (TECHNICAL) MEMBER (JUDICIAL)

Sangeetha

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