In the matter of Visa Energy Ventures Limited
- CitationIA(IBC)(LIQ.)/37(KB)2024 in C.P. (IB)/88(KB)2023
Ratio decidendi
The rule this decision rests on
The Tribunal allowed the Resolution Professional's application and ordered the corporate debtor's liquidation under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, but the reasoning it gives is thin. Its stated basis is that the Committee of Creditors resolved in its second meeting that liquidation should proceed because no resolution was possible, and that the minutes record this resolution. It also records the transaction audit report reporting no preferential, undervalued, fraudulent or extortionate transactions, and appoints the existing Resolution Professional as Liquidator on the Committee's proposal. The principle the decision rests on is that where the Committee of Creditors has resolved, as reflected in its minutes, that liquidation should be initiated, the Adjudicating Authority may admit a Resolution Professional's application for liquidation under Section 33(1) and order the corporate debtor's liquidation, upon the Committee's proposal of a liquidator being given effect.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
An application under Section 33 (2) of the Insolvency and Bankruptcy Code, 2016
In the matter of: Visa Energy Ventures Limited (CIN: U40108WB2012PLC210199), Visa House, 8/10, Alipore Road, Kolkata- 700027. … … … Corporate Applicant And In the matter of: Biswanath Choudhary, Resolution Professional of Visa Energy Ventures Limited, working for gain a t Room No.203, 2nd Floor, Sagar Trade Cube, beside Basusree Cinema, 104, S.P. Mukherjee Road, Hazra Area, Kolkata- 700023. … … … Applicant
Date of pronouncement: 26th November, 2024
CORAM: SMT. BIDISHA BANERJEE, HON’BLE MEMBER (JUDICIAL) SHRI D. ARVIND, HON’BLE MEMBER (TECHNICAL) Appearance (via video conferencing/physically) Ms. Rashmi Singhee, Adv. ] For the Applicant Ms. Simran More, Adv. ]
O R D E R
Per: Bidisha Banerjee, Member (Judicial) 1. This Court convened via hybrid mode of conferencing. 2. Heard the learned Counsel for the Applicant. 3. This IA(IBC)(LIQ.)/37(KB)2024 has been preferred by Mr. Biswanath Choudhary, the Resolution Professional (RP) of Visa Energy Ventures Limited to seek the following reliefs, inter alia: (a) To initiate he liquidation process of the Corporate Debtor as decided by the members of COC with voting rights;
KOLKATA BENCH (Court-II) KOLKATA IA(IBC)(LIQ.)/37(KB)2024 In C.P. (IB)/88(KB)2023 (b) To appoint M/s. Biswanath Choudhary (IBBI/IPA- 002/IP-N00597/2018-2019/12042) as the Liquidator in the Liquidation process of M/s. Visa Energy Ventures Limited; (c) Any other, as the Tribunal may deem fit; 4. Brief facts of the case: 4.1. Pursuant to the order dated 14th August, 2024 of this Tribunal, Corporate Insolvency Resolution Process (CIRP) was initiated upon Visa Energy Ventures Limited, the Corporate Applicant. Vide the said order dated 14th August, 2024, Mr. Biswanath Choudhary was appointed as the Resolution Professional (RP). 4.2. In compliance of Section 15 and other applicable provisions of the Insolvency and Bankruptcy Code, 2016 read with Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulations, 2016, the applicant made public announcement in Form-A on 17th August, 2024 in The Financial Express (English) and Aajkaal (Bengali), Kolkata newspapers. 4.3. In terms of Regulation 36A of the CIRP Regulations, invitation of Expression of Interest should be published on or before the 75th day from the Insolvency Commencement date. Since there is no operation/business in the Corporate Applicant and also there are no assets in the Corporate Applicant, the CoC was of the view that there is absolutely no possibility of getting any resolution in this Corporate Applicant. In the 2nd CoC meeting held on 23rd October, 2024, the CoC advised not to publish Form G and resolved that liquidation proceedings be initiated tin the Corporate Applicant forthwith. The CoC advised the RP to take
KOLKATA BENCH (Court-II) KOLKATA IA(IBC)(LIQ.)/37(KB)2024 In C.P. (IB)/88(KB)2023 necessary steps for filing of the application for initiation of liquidation proceedings. 4.4. The Applicant requested the CoC to propose the Liquidator’s name and finalize the estimated liquidation costs. The CoC proposed that the existing RP be appointed as the Liquidator. The fees of the Liquidator and the liquidation costs would be decided by the CoC/Stakeholders Consultation Committee. 4.5. The Applicant states that M/s. Nidhi Chokhani & Co., Chartered Accountants appointed to conduct the transaction audit have since submitted their report. No PUFE transactions under Sections 43, 45, 50 and 66 of the Insolvency and Bankruptcy Code, 2016 have been reported. 5. Analysis and findings: 5.1. We have considered the submission made by the learned Counsel for the Applicant and perused the record. 5.2. As per the minutes of the 2nd CoC meeting held on 23rd October, 2024 the CoC members the existing RP be appointed as the Liquidator. 5.3. Accordingly, this Bench hereby orders as follows: a. Prayers as sought for in IA(IBC)(LIQ.)/37(KB)2024 filed by RP, is allowed and Visa Energy Ventures Limited, the Corporate Applicant is ordered to be liquidated in terms of Section 33(1) of the Code. b. Mr. Biswanath Choudhary having Registration No. IBBI/IPA-002/IP-N00597/2018-2019/12042, email: choudhary_bishwanath@rediffmail.com, is hereby appointed as Liquidator. We find his consent form along with AFA on record as provided under Section 34(1) of the Code; (NO AFA)
KOLKATA BENCH (Court-II) KOLKATA IA(IBC)(LIQ.)/37(KB)2024 In C.P. (IB)/88(KB)2023 c. The Liquidator shall initiate liquidation process as envisaged under Chapter-III of the Code and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. d. Public Notice shall be issued in the newspapers stating that the Corporate Debtor is in liquidation. e. 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 the Liquidator. f. 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 the Corporate Debtor. g. On initiation of the liquidation process but 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 in Section 33(5) of the Code read with its proviso. h. 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 the liquidation process by the Liquidator. i. In terms of Section 33 (1) (b) (iii), the Liquidator shall file a copy of this Order with the Registrar of Companies, West
KOLKATA BENCH (Court-II) KOLKATA IA(IBC)(LIQ.)/37(KB)2024 In C.P. (IB)/88(KB)2023
Bengal, within whose jurisdiction the Corporate Applicant is registered. 6. The application bearing IA(IBC)(LIQ.)/37(KB)2024 shall stands disposed of in accordance with the above directions. 7. List the main C.P. (IB)/88(KB)2023 for reporting progress on 12th February, 2025. 8. The Registry is directed to send e-mail copies of the order forthwith to all the parties and their Ld. Counsel for information and for taking necessary steps. 9. Certified copy of this order may be issued, if applied for, upon compliance of all requisite formalities.
D. Arvind Bidisha Banerjee Member (Technical) Member (Judicial)
This Order signed on this, the 26th day of November, 2024.
Sayon (Steno)
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free