M/s. BFIP Enterprises Private Limited Vs

Justice Telaprolu Rajani. Member Judicial

I.  This  is an Application filed by the Resolution Professional under  Section 33 (2) of the Insolvency and Bankruptcy Code, 2016 seeking orders  for  Liquidation  of the  Corporate  Debtor  i.e.,  M/s.  BFIP  Enterprises Private Limited and for appointment of Mr.Kantipudi Venkata Raju, Applicant/RP herein as the Liquidator.

The brief facts of the Application are:

i. The Company Petition i.e., CP (IB)/126/9/AMR/2022 was admitted by  the  Tribunal  vide  its  order  dated 25.01.2023. Mr.Kantipudi Venkata Raju (Applicant herein), was appointed as Interim Resolution Professional (IRP). The Applicant constituted the Committee of Creditors (CoC) and in the 1  CoC meeting, the CoC confirmed the Applicant as the RP.

ii. The  Applicant  made public  announcement on 28.01.2023  in Form A, in widely circulated newspapers i.e., Financial Express in (English Newspaper) and Prajashakthi (Telugu Newspaper to invite  claims  from  the  creditors  of the Corporate Debtor.  In response to the public announcement, Applicant received claims from two operational creditors i.e., 1) M/s. Kriyas Unipro Pvt Ltd & 2) M/s. Balaji Enterprises. The admitted claim amount of both the  Operational  Creditors  is  Rs.1,26,90,991/-.  There  are  no claims from the Financial Creditors, hence,  the  Applicant constituted the CoC with Operational Creditors.

iii. The CD does not have any fixed assets and even stock. The applicant appointed two registered valuers for valuation of the other current assets, in which, the valuers submitted their reports.

iv.  In the CoC meeting held on 24.03.2023, the CoC approved the  minimumeligibility   criteria   for   Prospective   Resolution Applicants (PRAs) and directed the applicant to publish Form G for inviting Expression of  Interest (EoI) from PRAs. On 26.03.2023, the Applicant issued paper publication of Form 0 with the last date for receipt of EoIs as 10.04.2023. But there is no response to the Form G and no EoIs were received.

v.  In the 3  CoC meeting held on 16.04.2023, the CoC discussed the issue in detail and felt that there is no possibility of getting Resolution Plans as the unit does not have any  fixed assets, certain office and staff, etc. Therefore, the CoC decided and unanimously resolved to liquidate the CD by authorising the Applicant to file an application to the Adjudicating Authority seeking for liquidation of the CD. In the same meeting, the CoC unanimously resolved to appoint the Resolution Professional Mr. Kantipudi Venkata  Raju, IBBI Reg. No.  IBBI/IPA-002/IP-N01125/2021-2022/13675 as Liquidator and also resolved the fee of the Liquidator as Rs.1,00,000/- per month and his expenses as actuals. The applicant/RP gave his consent (i.e., Form AA) to act as Liquidator during the discussions with the CoC. Hence, this Application.

From the above, it would appear that despite all possible steps as required under the Code, taken during the CIRP, the CoC did not receive any viable proposal for revival of the Company.

ORDER

In view of the facts stated in the Application, this Tribunal allows the Application with the following directions.

a) Mr. Kantipudi Venkata Raju (Registration No IBBI/1PA-002/1P-N01125/2021-2022/13675),  having  office  at  4-198,  Manikya Nagar, Valasapakala, Kakinada, AP-533005;  e-mail:kantipudiven@gmailscom; Mob i I e:(+91 )9848835882 is appointed  as the Liquidator. No  disciplinary  proceedings  are pending against him as per the IBBI website.

b)  He  shall issue  public  announcement  stating  that  Corporate Debtor is in Liquidation.

c)  The Moratorium declared under Section  14 of the IBC, 2016 shall cease to operate here from.

d)  Subject to section 52 of the IBC 2016 no suit or other legal proceedings  shall  be  instituted  by  or  against  the  Corporate Debtor. This shall however not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

e)  All powers of the Board of Directors, Key Managerial Personnel and partners of the Corporate Debtor shall cease to have effect and shall be vested in the Liquidator.

(f) The liquidator shall exercise the powers and perform duties as envisaged under Sections 35 to 50 and 52 to 54 of the Code, read with Insolvency  and Bankruptcy Board  of India (Liquidation Process) Regulations 2016.

g)  Personnel connected with the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as will be required for managing its affairs.

h)  The Liquidator shall be entitled to such fees as may be specified by the Board in terms of Section 34 (8) of the Code.

i)  This Order shall be deemed to be a notice of discharge to the officers,  employees  and  workmen  of the  Corporate  Debtor, except when the business of the Corporate Debtor is continued during the Liquidation process by the Liquidator.

j)  Copy of the Order shall be furnished to the IBBI, to the Regional Director (South Eastern Region), Ministry of Corporate Affairs; Registrar of Companies & Official Liquidator, Andhra Pradesh, the Registered Office of  the Corporate Debtor; and the Liquidator.

With  the above  directions 1A(IBC)/199/2023 in CP (IB)/126/9/AMR/2022 is disposed of. Hence this Order.