INSOLVENCY AND BANKRUPTCY CODE, 2016,

Section 34

Appointment of Liquidator and fee to be paid - Committee of Creditors resolved to close process of CIRP - Revival of corporate debtor uncertain - Whether liquidation of corporate debtor justified

CIRP under section 10 was commenced against the respondent-corporate debtor. CoC in its third meeting resolved to close the process of CIRP with 100 per cent majority and instructed the Resolution Professional (RP) to file an application for initiation of liquidation. Thus, RP filed an application for order of liquidation. Held: It was observed that the Expression of Interest received from one applicant to purchase the asset of company could not materialize and no realisations were made therefrom. Further, there were three major disputed receivables for which litigation was going on and the outcome of all the three litigations were uncertain and could take longer time. Thus, revival of the corporate debtor was not in sight at present. Hence, order of liquidation was passed against the corporate debtor.

REFERRED :

FAVOUR : In favour of applicant

A.Y. :

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