Pm Cold Storage Private Limited vs Goouksheer Farm Fresh Private Limited ...
- CitationCompany Appeal (AT) (Insolvency) No. 1418 of 2024
Ratio decidendi
The rule this decision rests on
Where the CIRP period of 180 days has expired without a resolution plan being received, and Form-G has been issued twice without any expression of interest, the Adjudicating Authority is bound under Section 33 to direct liquidation of the corporate debtor, and no other option is open. Liquidation is the only remedy available once the CIRP period has lapsed without a resolution plan, so the lapse of time since expiry of that period does not render the direction to liquidate open to interference on appeal; the liquidator remains obliged under the Liquidation Regulations to initiate the sale of the corporate debtor as a going concern, and a scheme may be submitted in accordance with law.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: P.M. Cold Storage Pvt. Ltd. ...Appellant Versus Goouksheer Farm Fresh Pvt. Ltd. & Ors. ...Respondents
Present: For Appellant : Mr. Kumar Shashwat Singh Sawno, Ms. Vijaya Singh and Mr. Rahul Kanoujia, Advocates.
For Respondents :
ORDER
(Hybrid Mode)
25.07.2024 I.A. No. 5155 of 2024
1. This is an Application praying for condonation of 10 days delay in filing
of the Appeal.
2. Sufficient cause has been shown in paragraphs 4 & 5.
Delay is condoned.
Comp. App. (AT) (Ins.) No. 1418 of 2024
1. Heard Counsel for the Appellant.
2. This Appeal has been filed against an order dated 05.06.2024 by which
order, the Adjudicating Authority has allowed the I.A. 751/2020 filed for
Liquidation of the Corporate Debtor.
3. Learned Counsel for the Appellant submits that the Committee of
Creditors (CoC) which passed the Resolution for liquidation was not properly
constituted, which dispute came to be decided holding that the Appellant is
only Member of the CoC on 14.09.2022 hence the Resolution which was passed by the invalid CoC could not be relied for passing an order of
Liquidation.
4. We have considered the submission of Counsel for the Appellant and
perused the record.
5. From the facts which have been noted by the Adjudicating Authority in
the Impugned Order, it is clear that 180 days of CIRP expired on 23.08.2020
twice Form-G was issued but no Expression of Interest (EoI) was received
which has been noted in paragraph 4 of the Impugned Order. The 180 days
having expired on 23.08.2020 there is no other option accept to direct for
Liquidation since no Resolution Plan has been received in CIRP of the
Corporate Debtor despite twice issuing the Form-G.
6. Under Section 33, it was clearly enjoined to issue a direction for
Liquidation and thus in view of the lapse of time i.e., about four years from
expiry of the period of CIRP, Liquidation is only option hence on this ground
we are unable to interfere with the order impugned, however, in the
Liquidation, Liquidator as per the Liquidation Regulation is obliged to initiate
process for sale of the Corporate Debtor as a going concern as per Regulation.
It is always open for the submission of the scheme in accordance with law as
per the Regulation.
With these observations, we dismiss the Appeal.
[Justice Ashok Bhushan] Chairperson
[Arun Baroka] Member (Technical) himanshu/nn Comp. App. (AT) (Ins.) No. 1418 of 2024 & I.A. No. 5155 of 2024 2 of 2
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