Naveen Malhotra vs Vishal Global Limited

Dr. Deepti Mukesh, J

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 issuance of directions for liquidation of the corporate debtor, Vishal Global Limited.

The facts in brief are that the operational creditor, Mr. Naveen Malhotra had filed an application bearing no. IB 988(ND)/2018 under Section 9 of

the Code for initiation of Corporate Insolvency Resolution Process against the corporate debtor. The said application was admitted by this tribunal vide

order dated 27.09.2018 and Mr. Ashish Singh appointed as Interim Resolution Professional (IRP).

Thereafter, in terms of Regulation 6 (1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)

Regulations, 2016 (CIRP Regulations) the said Interim Resolution Professional made a public announcement in FORM-A on 07.10.2018 in Financial

Express (English Edition) and Jansatta (Hindi Edition). The Public announcement was also uploaded in the website of Insolvency and Bankruptcy

Board of India (IBBI).

The Resolution Professional constituted the Committee of Creditors and issued the notice for convening the first meeting of the CoC on 02.11.2018.

In its first meeting, Committee of Creditors appointed the IRP to act as Resolution Professional (RP). It is submitted that no claims were received

from the financial creditor within the prescribed period mentioned in public announcement which was 19.10.2018. Claims from the operational creditor

was received for Rs. 1,25,000/- on 26.10.2018 which was admitted and COC was constituted comprising of operational creditor only.

The Resolution Professional submits that the corporate debtor is a non-operating company as per the balance sheet for the financial year ended

31.03.2018 and the provisional balance sheet provided till 30.09.2018 is with no tangible or intangible assets. The Resolution Professional (RP)

submitted that despite his best efforts made, they unbale to find the registered office of the corporate debtor. Further submitted that the company has

filed their annual return and financial statement with ROC up to the financial year ending 31.03.2018. The company has changed their statutory

auditors in the AGM held for the financial year ending 31.03.2017 who is continuing till date.

The IRP convened 2nd COC meeting wherein the COC was postponed on 26.12.2018. In the 3rd COC meeting, the COC was reconstituted on the

basis of claim received from Assistant Commissioner of Income Tax in Form B for Rs. 108,86,68,457/-. After this claim was admitted by Resolution

Professional, the Committee of Creditors was reconstituted. The COC in the meeting has not approved the resolution as the authorized representative

of Assistant Commissioner of Income Tax has not voted in favour of the resolution.

The CIRP of 180 days in the present matter expired on 26.03.2019 and due to non-receipt of any Resolution Plan within the period of CIRP of 180

days, it is seen from the provisions of IBC, 2016 is to only press the liquidation mode as provided under the provisions of section 33 of IBC, 2016 of

which 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€​

Ld. RP 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 by Kapoor Chadha & Associates and S. Hariharaputran

& Co. The fair value of assets and liquidation value as per 31.03.2018 is NIL.

This Tribunal in the circumstances taking into consideration the provisions of law as well as on facts is constrained to order 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. Ashish Singh Resolution Professional holding registration no. IBBI/IPA- 002/ IP-N00416/2017-18/ 11230, is appointed as Liquidator and has

given consent to act as the liquidator vide written communication dated 31.05.2019, under section 34 of the Insolvency and Bankruptcy (Application to

Adjudicating Authority) Rules, 2016.

b. Mr. Ashish Singh directed 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.

i. Copy of this order be sent to the operational creditor, corporate debtor and the Liquidator for taking necessary steps.

j. C.A. 179(ND) /2018 filed in IB 988(ND)/ 2018 is disposed of in the aforesaid terms.