Allowed

In the matter of Suchetan Exports Pvt. Ltd. M.A. No. 2889-2019 in C.P. No. 409-I&B-2018

NCLT5 Dec 2019

Case brief

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What is this about?

The NCLT Mumbai Bench allowed the Resolution Professional's application to liquidate Suchetan Exports Pvt. Ltd. after a resolution plan was not approved and unanimously decided by creditors. The bench appointed the Resolution Professional as liquidator and ordered the cessation of board powers.

What did the court decide?

Order for liquidation of the corporate debtor; appointment of Resolution Professional as Liquidator; cessation of Board powers; initiation of liquidation process.

In the matter of Suchetan Exports 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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C. P. No. 409/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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Mehta Intertrade Steels Pvt. Ltd.

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… Operational Creditor

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V/s.

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Suchetan Exports Pvt. Ltd.

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… Corporate Debtor

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M.A. No. 2889/2019

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Mr. Vimal Kumar Agarwal

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… Applicant/

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Resolution Professional

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Order delivered on 05.12.2019

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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. Bhupesh Dhumathar, Advocate, i/b. Raman Misra

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Per Shri Shyam Babu Gautam, Member

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ORDER

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The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor namely Suchetan Exports Pvt. Ltd. The Adjudicating Authority vide its order dated 09.10.2018 on a Petition filed by the Operational Creditor under Section 9 of the Code, wherein Mr. Vimal Kumar Agarwal, was appointed as Interim Resolution Professional (IRP). Thereafter, on 24.11.2018 in the 1^st Committee of Creditors (CoC) meeting Mr. Vimal Kumar Agarwal, was resolved to be appointed as Resolution Professional (RP) and the same was approved by this Bench.

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IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH

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MA No. 2889/2019 IN C.P. No. 409/I&B/2018

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The RP submits that the public announcement was made on 30.10.2018, in “Free Press Journal” in English, and “Navshakti” in Marathi, for submitting the claim. The IRP constituted the CoC.

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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 an advertisement was issued, inviting Expression of Interest in Form G on 15.01.2019 fixing 30.01.2019 as last date for submission of Expression of Interest by the Prospective Resolution Applicants.

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The Resolution Professional submits that in the 4^th CoC meeting held on 26.04.2019, the CoC having unanimously decided not to pray for extension of 90 days and 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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The Applicant/ Resolution Professional Mr. Vimal Kumar Agarwal, 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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IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH

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MA No. 2889/2019 IN C.P. No. 409/I&B/2018

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b. that Mr. Vimal Kumar Agarwal, Registration No. IBBI/IPA001/IPA-001/IP-P00741/2017-18/11247, 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 for conduct of the liquidation proceedings as provided in Regulation 4(3) of the 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 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 Suchetan Exports Pvt. Ltd. M.A. No. 2889-2019 in C.P. No. 409-I&B-2018

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In the matter of Suchetan Exports Pvt. Ltd. M.A. No. 2889-2019 in C.P. No. 409-I&B-2018

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