Allowed

In the matter of Mithiya Developers Pvt. Ltd. M.A. No. 3011-2019 in C.P. No. 3243-I&B-2018

NCLT10 Oct 2019

Case brief

AI extract

What is this about?

The National Company Law Tribunal allowed an application under Section 33 of the Insolvency and Bankruptcy Code for liquidation of Mithiya Developers Pvt. Ltd. after the Committee of Creditors resolved to liquidate the company due to the absence of a resolution plan.

What did the court decide?

Corporate Debtor liquidated; Mr. Ravi Prakash Ganti appointed as Liquidator; powers of Board of Directors vested in Liquidator; liquidation process initiated.

In the matter of Mithiya Developers Pvt. Ltd. M.A. No… — Insolvency and Bankruptcy | NCLT (2019)

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IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH

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M. A. No. 3011/2019

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C. P. No. 3243/I&B/2018

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Under Section 33 of Insolvency &

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Bankruptcy Code, 2016

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In the matter of

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Indiabulls Housing Finance Ltd.

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… Financial Creditor

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V/s.

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Mithiya Developers Pvt. Ltd.

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… Corporate Debtor

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M.A. No. 3011/2019

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Mr. Ravi Prakash Ganti

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… Applicant/

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Resolution Professional

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Order Pronounced on 10.10.2019

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Coram:

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Hon’ble Shri Bhaskara Pantula Mohan, Member (Judicial) Hon’ble Shri Shyam Babu Gautam, Member (Technical)

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For the Applicant: Mr. Mayank Padiya, CS, Authorised representative of RP

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Mr. Ravi Prakash Ganti, RP-in person

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Ms. Henna Goradia, Advocate, i/b. Wadia Ghandy & Co., for the Financial Creditor

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Per Shri Shyam Babu Gautam, Member (Technical)

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ORDER

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The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor namely Mithiya Developers Pvt. Ltd. The Adjudicating Authority vide its order dated 06.12.2018 on a Petition filed by the financial Creditor under Section 7 of the Code, wherein Mr. Ravi Prakash Ganti, was appointed as Interim Resolution Professional (IRP). Thereafter, on 12.01.2019 in the 1^st Committee of Creditors (CoC) meeting Mr. Ravi Prakash Ganti, was resolved to be

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IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH

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MA No. 3011/2019 IN C.P. No. 3243/I&B/2018

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appointed as Resolution Professional (RP) and the same was approved by this Bench.

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The RP submits that the public announcement was made on 14.12.2018, in “Free Press Journal”, (Mumbai edition) in English, and “Navakal” in Marathi, for submitting the claim. The RP constituted the CoC. The Indiabulls Housing Finance Ltd. is the sole Financial Creditor.

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The RP submits that on 22.03.2019 appointed two registered Valuers as required under Regulation 27 of the IBBI (IRP for Corporate Persons) Regulations, 2016 and the Information Memorandum was prepared as provided under Regulation 36(1) of the said regulation. It is further submitted that in the 3^rd meeting of CoC held on 11.03.2019 an advertisement was issued, inviting Expression of Interest in Form G on 12.03.2019 fixing 27.03.2019 and as last date for submission of Expression of Interest by the Prospective Resolution Applicants.

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The RP submits that with respect to the first publication for inviting expression of interest, no expression of interest was received against publication made on 12.03.2019, therefore, in the 4^th CoC meeting held on 18.04.2019, it was decided to re-publish the Form- G, an advertisement was issued, inviting Expression of Interest in Form G on 25.04.2019 fixing 10.05.2019 and as last date for submission of Expression of Interest by the Prospective Resolution Applicants.

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It is submitted that the CIRP period was extended by 90 days w.e.f. 04.06.2019 and the extended CIRP period came to an end on 02.09.2019. However, no resolution plan was received.

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The Resolution Professional submits that in the 5^th CoC meeting held on 31.08.2019, the CoC having 100% voting rights passed a resolution for liquidating the company in view of the fact that no Resolution Plan was received. Accordingly, the Resolution Professional filed this application for liquidation of the Company as provided u/s. 33 of the Insolvency & Bankruptcy Code, 2016.

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IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH

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MA No. 3011/2019 IN C.P. No. 3243/I&B/2018

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The Applicant/ Resolution Professional Mr. Ravi Prakash Ganti, has agreed to act as liquidator to carry on the process of liquidation and given his consent to act as Liquidator.

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On hearing the submissions of the Applicant and on reading the Application and the documents enclosed therein, the RP has complied with the procedure laid down under, the Code read with Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (Regulations), for the valuation report filed by the valuer has not been disputed by the CoC, on verification of the papers/ documents placed before this Bench, we are of the considered view that this is a fit case to pass liquidation order under sub-section 1 of section 33 of the Code as no resolution plan has been approved by the Adjudicating Authority and accordingly, this Bench orders;

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a. that 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.

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b. that Mr. Ravi Prakash Ganti, Registration No. IBBI/IPA-002/IPN00102/2017-18/10245, herein is hereby appointed as Liquidator as provided under Section 34(1) of the Code.

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c. all the powers of the Board of Directors, key managerial persons, the partners of the Corporate Debtor hereafter ceased to exist. All these powers henceforth vest with the Liquidator.

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d. that 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.

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e. that the Liquidator will charge fees of ₹75,000/- plus GST per month for a period of 6 months from the liquidation commencement date. If the liquidation process is not completed in the 6 months period, the fee payable shall be as per Regulation 4(2) of IBBI (Liquidation Process Regulations), 2016.

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g. that 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 proceeding on behalf

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IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH

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MA No. 3011/2019 IN C.P. No. 3243/I&B/2018

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of the corporate debtor with prior approval of this Adjudicating Authority.

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h. This liquidation order 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.

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Consequently, as stated supra, Resolution Professional is appointed as the Liquidator as provided under section 34(1) of the Code. All powers of the board of directors, key managerial personnel and the partners of the Corporate Debtor, as the case may be, shall cease to have effect and shall be vested with the liquidator;

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Accordingly, this Misc. Application is hereby allowed directing the Liquidator appointed in this case to initiate liquidation process as envisaged under Chapter-III of theCode by following the liquidation process given in the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

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Sd/Sd/- SHYAM BABU GAUTAM BHASKARA PANTULA MOHAN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

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/Sg/-

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In the matter of Mithiya Developers Pvt. Ltd. M.A. No. 3011-2019 in C.P. No. 3243-I&B-2018

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In the matter of Mithiya Developers Pvt. Ltd. M.A. No. 3011-2019 in C.P. No. 3243-I&B-2018

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