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Judgment
Sumita Purkayastha (Technical)
This is an application filed by the Resolution Professional under Section 33 (1) of Insolvency and Bankruptcy Code, 2016 (hereinafter referred as
the “Codeâ€) for order of liquidation of the corporate debtor,Moser Baer Electronic Limited.
The facts in brief are that the an application for Corporate Insolvency Resolution Process was preferred by Autonix Lightning Private Limited,
herein the Operational Creditor in the matter of Moser Baer Electronic Limited, herein the Corporate Debtor, under Section 9 of the IBC on account
of default. The Adjudicating Authority vide order dated 17.09.2019 admitted the said application and appointed Mr. Hemant Sharma as the Interim
Resolution Professional of the Corporate Debtor.
The IRP issued a Public Announcement dated 19.07.2019 under Regulation 6 of IBBI Regulations and invited claims from the creditors of the
Corporate Debtor. On receiving the claims the IRP constituted the CoC of the Corporate debtor. On first meeting of CoC held on 4.08.2019 the IRP
was appointed as the Resolution Professional.
The second meeting of COC was held on 30.09.2019 wherein the members decided that the Applicant shall proceed to invite expression of interest
from the prospective Resolution Applicants in prescribed Form-G and publication was made in Business Standard (English and Hindi) Delhi NCR
Edition on 01.10.2019. The last date of submission of Expression of Interest was decided to be 16.10.2019. The third meeting of CoC was held on
19.10.2019 wherein it was apprised to the CoC members that no interest has been received from any prospective Resolution Applicant till the last date
of submission. The committee was of the view that it would be prudent to take a commercial view and another publication (Form-G) was made in
Business Standard (English and Hindi) Delhi NCR Edition on 21.10.2019. In the fourth meeting of the CoC it was informed that and Expression of
Interest has been received from one Prospective Resolution Applicant viz. East India Udyog Limited. Subsequently the Resolution Professional issued
Request for Resolution Plan along with the Evaluation Matrix to the Prospective Resolution Applicanton 19.11.2019. The Prospective Resolution
Applicant was asked to submit its resolution plan on or before 19.12.2019, however the Prospective Resolution Applicant vide its Email dated
30.11.2019 withdrew its interest from the submission of Resolution Plan in the instant matter.
The Resolution Professional, in the Fifth CoC meeting held on 09.01.2020 apprised the members that till date no Resolution Plan has been received
in the instant matter. The members further voted in favour of extension of the CIRP period by another 90 days as the limit of 180 days for completion
of the CIRP was going to end on 13.01.2020 for which the Resolution Professional filed an application under section 12(3) read with 12(2) of the IBC,
which was allowed by the Adjudicating Authority vide order dated 15.01.2020. Further the committee was of the view that it would be prudent to take
a commercial view and another publication (Form-G) was made in Business Standard (English and Hindi) Delhi NCR Edition on 30.01.2020 inviting
Expression of Interest.
The Sixth CoC meeting was held on 27.08.2020 wherein the Resolution Professional apprised the committee that pursuant to the Invitation of
Expression of Interest published on 30.01.2020, and Expression of Interest received from one Prospective Resolution Applicant viz. LMJ Services
Limited. Subsequently the Resolution Professional issued Request for Resolution Plan along with the Evaluation Matrix to the Prospective Resolution
Applicant. The Prospective Resolution Applicant was asked to submit its resolution plan on or before 25.0.2020.
It was further apprised by the Resolution Professional to the CoC members that no resolution plan was received by the Prospective Resolution
Applicant and that the time line of 270 days for completion of the CIRP of the Corporate Debtor ended on 13.04.2020. The CoC members passed the
resolution to initiate the Liquidation process of the Corporate Debtor with 100% of votes.
The CIRP of 270 days in the present matter has been expired and due to non-receipt of any Resolution Plan within the period of CIRP of 270 days,
hence this application has been filed under the provisions of section 33 of IBC, 2016. The relevant sub-section 1 of section 33 is reproduced hereunder
;
“33. (1) Where the Adjudicating Authority, â€
a. before the expiry of the insolvency resolution process period or the maximum period permitted for 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 under sub-section (6) of section 30; or
b. rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein, it shallâ€
(i) pass an order requiring the corporate debtor to be liquidated in the manner as laid down in this Chapter;
(ii) issue a public announcement stating that the corporate debtor is in liquidation; and
(iii) require such order to be sent to the authority with which the corporate debtor is registered.â€
The Resolution Professional represents that valuation report as required to be obtained under the provisions of IBC, 2016 from the registered valuer
in relation to the fair value of the assets of the corporate debtor as well as its liquidation value has been duly done. The fair value of assets and
liquidation value as per date 20.07.2020 is Rs. 384.88 (in lakhs) and Rs. 105.40 (in lakhs) respectively.
This Tribunal in the circumstances taking into consideration the provisions of law as well as on facts hereby orders for liquidation of the corporate
debtor and in the circumstances the corporate debtor stands liquidated and the incidence of liquidation to follow, on and from the date of this order in
terms of the provisions of IBC, 2016 and more particularly as given in Chapter â€" III of IBC, 2016 and also in terms of Insolvency and Bankruptcy
(Liquidation Process) Regulations, 2017 along with the following directions:
a. Mr. Hemant Sharma Resolution Professional holding registration no. IBBI/IPA-002/IP-N00015/2016-17/10019, is appointed as Liquidator and has
given consent to act as the liquidator vide written communication dated 27.08.2020, under section 34 of the Insolvency and Bankruptcy (Application to
Adjudicating Authority) Rules, 2016.
b. Mr. Hemant Sharma isdirected to issue Public Announcement stating that the corporate debtor is in liquidation, in terms of Regulation 12 of the
Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016;
c. The Registry is directed to communicate this Order to the Registrar of Companies, NCT of Delhi & Haryana and to the Insolvency and Bankruptcy
Board of India;
d. In terms of section 178 of the Income Tax Act, 1961, the Liquidator shall give necessary intimation to the Income Tax Department. Similarly in
relation to other fiscal and regulatory authorities which governs the Corporate Debtor, the Liquidator shall also duly intimate about the order of
liquidation
e. The Order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and that a fresh
Moratorium under Section 33(5) of the Insolvency and Bankruptcy Code shall commence;
f. 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
Insolvency and Bankruptcy Code, 2016;
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 and in accordance with the relevant regulations.
h. The Liquidator shall submit a Preliminary Report to the Adjudicating Authority within seventy-five days from the liquidation commencement date as
per Regulation 13 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016.
Copy of this order be sent to the operational creditor, corporate debtor and the Liquidator for taking necessary steps.
IA.3680(ND) /2020 filed in IB 1265 (ND)/ 2019 is disposed of in the aforesaid terms.