Melange Systems Private Limited Vs PME Infratech Private Limited

This is an application filed by Mr. Rakesh Sehgal, Resolution Professional of the Corporate Debtor seeking liquidation of PME Infratech Private Limited under Section 33(1) of Insolvency and Bankruptcy Code, 2016 (hereinafter called as the “Code”).

Brief facts of the Application are as follows:

This Tribunal vide an order dated 09.05.2023, in Company Petition bearing C.P.(IB)/ 931(MB)2021 filed under Section 9 of the Code, by State Bank of India (hereinafter referred to as the “Operational Creditor”), admitted the petition and Corporate Insolvency Resolution Process (CIRP) was initiated against PME Infratech Private Limited [CIN: U32100MH1987PTC045671] (hereinafter called as the “Corporate Debtor”).

Mr. Lalit Kumar Dangi was appointed as Interim Resolution Professional (IRP) by this Tribunal vide order dated 09.05.2023. On 08.06.2023, the CoC voted in favour of replacing the IRP and appointing Mr. Rakesh Sehgal as the Resolution Professional. This Tribunal approved the appointment of Mr. Rakesh Sehgal as the RP of the Corporate Debtor on 02.08.2023. The RP took charge from the IRP on 12.08.2023.

Form G inviting Expression of Interest (EoI) from prospective resolution applicants under, section 30(6) of the Code was published on 08.07.2023 and the last date for submission of Expression of Interest was 23.07.2023.

In the third meeting of the CoC held on 28th July 2023, the IRP informed the CoC that he had received EOIs from two PRAs namely, Sunrise Industries and Harpreet Singh Jolly. Further, the members accorded their approval for issuance of the Request for Resolution (RFRP) and evaluation Matrix (EM) to the PRAs as per regulation 26 B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution process for Corporate Persons) (Amendment) Regulations, 2018. The last date for submission of Resolution Plans was 01.09.2023.

One of the PRAs i.e. Mr. Harpreet Singh Jolly requested the RP to extend the last date of submission of Resolution Plan up to 05.09.2023. After consulting with the CoC as discussed in the fifth CoC meeting held on 01.09.2023. Last date of submission of Resolution Plan was extended to 05.09.2023.

However, no resolution plan was received, even on the extended date i.e. 05.09.2023. Though, the applicant proposed for issuance of a fresh Form G. However, this resolution was rejected by the CoC with 100% vote.

The applicant submits that in the 7th CoC meeting held on 09.10.2023 after taking into consideration non-receipt of the Resolution Plans and non-functioning of the Corporate Debtor for last few years, the CoC approved the Resolution for liquidation of the Corporate Debtor by 100% votes. Copy of the minutes of the 7th CoC meeting held on 09.10.2023 is annexed as Exhibit-9.

We note that CoC deliberated on the proposed resolution for liquidation of the Corporate Debtor noting that “there have been no operations in the CD’s factory for last more than three years. There are no fixed assets of the CD. The stock of decommissioned machinery items and stock of inventory consisting of raw material, work in process and finished goods is lying at third party premises. There are no employees and workmen employed by the CD.”

Thereafter, the resolution was put to vote. The CoC consisting of sole financial creditor namely Panjab and Singh Bank approved the Resolution with 100% vote and the same are reproduced below:

“RESOLVED THAT, the RP be and is hereby authorized to file an application before NCLT, Mumbai under Section 33 of the Insolvency & Bankruptcy Code, 2016 for the liquidation of the Corporate Debtor."

The Applicant further submits that the CoC in its 8th meeting conducted on 08.11.2023, and voted with 100% in favour of the Resolution to appoint Mr. Rahul Jindal IP having Registration No. IBBI/IPA-001/IP-P-02649/2021-2022/14048 as liquidator of the Corporate Debtor. Written consent to act as a Liquidator has been given by proposed Liquidator Mr. Rahul Jindal which is annexed to additional affidavit filed on 01.12.2023 as exhibit B. Further, this bench is also notes that as per the IBBI website the AFA certificate No. AA1/14048/02/090324/105542 issued to Mr. Rahul Jindal is valid up to 09.03.2024.

Considering the facts and circumstances of the present case, the Bench is of the considered view that the Corporate Debtor be liquidated. Accordingly, this Bench orders that:

a. IA-5434(MB)2023 IN C.P. (IB)/931(MB)2020 filed by the Applicant for the Liquidation of the Corporate Debtor viz. PME Infratech Private Limited is allowed and the company to be liquidated in the following manner:

b. Mr. Rahul Jindal, having Registration No. IBBI/IPA-001/IP-P-02649/2021-2022/14048, (email: jindalrahul60@gmail.com), is appointed as the Liquidator as provided under Section 34(1) of the Code to conduct the liquidation process of the Corporate Debtor.

c. The Liquidator for conduct of the liquidation proceedings would be entitled to the fees as provided in Regulation 4(2)(b) of the IBBI (Liquidation Process Regulations), 2016.

d. The Liquidator appointed in this case to initiate liquidation process as envisaged under Chapter-III of the Code by following the liquidation process given in the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

e. The Liquidator appointed under Section 34(1) of the Code, will have all powers of the Board of Directors, key managerial personnel and the partners of the Corporate Debtor, as the case may be, hereafter ceased to exist and henceforth be vested with the Liquidator.

f. The Corporate Debtor to be Liquidated in the manner as laid down in the Chapter by issuing Public Notice stating that the Corporate Debtor is in liquidation with a direction to the Liquidator to send this order to the RoC under which this Company has been registered.

g. The personnel of the Corporate Debtor are directed to extend all co-operation to the Liquidator as required by him in managing the liquidation process of the Corporate Debtor.

h. On having liquidation process initiated, 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 proceedings on behalf of the Corporate Debtor with prior approval of this Adjudicating Authority.

i. This liquidation order u/s 33(7) 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.

With the above directions, the IA-5434(MB)2023 IN C.P. (IB)/931(MB)2020 for Liquidation of the Corporate Debtor is hereby allowed and disposed of.