Allowed

In the matter of Raipur Polymers Private Limited Ia (Ib) 53-CB-2021 in Cp (Ib) No. 52-CTB-2020

NCLT10 Aug 2021

Case brief

AI extract

What is this about?

The NCLT allowed an application under Section 33(2) of the IBC to initiate liquidation of Raipur Polymers Private Limited. The Court was approached by the Resolution Professional after the Committee of Creditors unanimously approved liquidation. The Court ordered the corporate debtor to be liquidated, appointed the Resolution Professional as Liquidator, and issued standard procedural directions.

What did the court decide?

Liquidation of the Corporate Debtor ordered; Resolution Professional appointed as Liquidator; powers of Board of Directors ceased; public notice and other statutory compliances directed.

In the matter of Raipur Polymers Private Limited Ia (Ib)… — Insolvency and Bankruptcy | NCLT (2021)

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IN THE NATIONAL COMPANY^{LAW TRIBI.INAL} CUTTACK BENCH CUTTACK

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rA (IB) s3tcBll202r

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CP (IB) No. 52lCTBl2020

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In the Matter of:

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An Application under Section 33(2) of the^{Insolvency and BankruptcyCode, 2016 for} an order of Liquidation of the Corporate^Debtor;

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and

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In the Matter of:

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M/s Calcopolychem Private Limited;

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... Financial Creditor

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VCTSUS

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M/s Raipur Polymers Private Limited;

...Corporate Debtor

and

In the Matter of

Mr, Saradidnu Jena, Resolution Professional in the matter of Raipur Polymers Private Lin-rited, having office at O,U-510, 5th Floor, Esplanade One, Rasulgarh, Bhubaneswar751010;

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. . . Resolution Professional^{(RP)/Applicant}

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Versus

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Raipr-rr Polymers Private Limited, a Company registered under Companies Act, 1956 having registered office at H. No. 40180411, I't Floor, Behind Lal Ganga Shopping Mall, Near Modern X - Ray, G.E. Road, Raipur, Chhattisgarh- 492 001.

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...Respondent

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Order reserved on: 22,07.2021

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Order pronounced on: 10.08.2021

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Corum:

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Shri Rajasekhar V.K, Member (Judicial)

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Shri Satya Ranjan Prasad Member (Technical)

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Page I of5

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IN THE NATIONAL COMPANY^{I,AW'IRIBUNAL} CUTTACI( BENCFI

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IA (lB) s3lcBl12021 in CP (lB) No.52lCTBl2020 In re: Liquitlation of^{RaipurPolynrcrs PrivateLindled}

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App e ar ances (thro ug h^v ide o^{c o nfe re ncin g)}

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For the Applicant

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Mr. Saradindu Jena Resolutional Professional

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ORDER

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Per; Salya Ranjun Prasad., Member^(Technical)

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'fhis IA has been filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 by the Resolution Professional in the^{matter of RaipurPolymers} Private Limited making the following prayers:^-

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a) Pass an order requiring the Corporate Debtor to be^{liquidatedin the} manner as laid down in this Chapter-lll of Insolvency^{and Banltruptcy} Code,2016;

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b) Issue a public ctnnouncement stating that the Corporate Debtor isⁱⁿ Liquidalion;

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c) Recluire such order to be sent to the authorily with which the Corporate Debtor is registered.

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The brief facts are that the application IA (IB) No. 53/CB 12021 filed in the matter of M/s Calcopolychem Private Limited in CP (IB) No. 52lCTBl2019 under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC' for brevity) was admitted by this Adjudicating Authority on 3l't March 2021 and the applicant herein was appointed as the Interim Resolution Professional. Subsequently, the applicant herein was appointed as the Resolution Professional in the matter, as confirmed in the first COC meeting held on Aprtl 27 ,2021. It is stated that based on request of the Federal Bank Limited, a member having 100^y, voting shares in the Committee of Creditor (COC) to convene a meeting of COC to discuss and pass a resolution for initiation of liquidation of the Corporate Debtor. Thereafter, in the third meeting of COC held on 24.05 .2021 the present state of the Corporate Debtor was discussed in detail and it was

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Page 2 of5

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IN THE NATIONAL COMPANY^{LAW TRIBI.]NAL} CUTTACI( I}ENCI{

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rA (rB) s3lcBll202t in CP (lB) No.52lCTBl2020 h re: Liquidation^{o.f Raipur Polymers Privutel.imited}

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decided in the best commercial wisdom to^{initiatethe process of liquidation} against the Corporate Debtor.

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J. It is furlher stated that the resolution for^{liquidationof the Corporate Debtorwas} approved with 100% votes. Relevant^{documentsin this regard have been} enclosed with the application.

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In this respect, it is relevant to reproduce section 33(2)^{of the Insolvencyand} Bankruptcy Code, which is as under:

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"Where lhe resolulion professional, at any time during the corporate insolvency resolution process but before confirmation of^{resolutionplan,} intimates the Adjudicating Authority of the decision of the^committeettf creditors (approved by not less than sixty six^percent of the^{votingshare) to} liquidate the corporate debtor, the Adjudicating Authority shall^{pass a} liquidation order as re/brued to in sub-clauses (il, (ii) and⁽ⁱⁱⁱ⁾ of clause^{(b) oJ'} sub-section (l).^"

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From a reading of the above provision, it is clear that when a Resolution Professional at any time during the CIRP but before confirmation of Resolution Plan approaches the Adjudicating Authority with the decision of the COC approved by not less than sixty six percent of the voting share, the Adjudicating Ar"rthority shall pass a liquation order. In this case the CoC with 100% voting right approved the resolution for liquidation of the Corporate Debtor. Hence, this is a fit case to order liquidation under Section 33(2) of the IBC, 2016.

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For the afloresaid reasons, IA (IB) 53lCB/2020 is ALLOWED with the following order: -

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ORDER

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(i) The Corporate Debtor, M/s Raipur Polymers Private Limited is ordered to be liquidated with immediate eff'ect under Section 33(2) of IBC,20l6.

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IN THE NATIONAL COMPAT{Y^{LAW TRIBUNAL} CUTTACKBENCH

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rA (IB) 53lcBll2021 in CP (IB) No.52lCTBl2020 In re: Liquidation^{of Raipur Polymers PrivqteLlmited}

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(ii) l'he Resolution Professional Mr.^{SaradidnuJena(RegistrationNo.} IBBVIPA-002/IP-N0052012017-2018111622) of^{M/s RaipurPolymers} Private Limitecl having office at O.U-510,^{5th Floor, EsplanadeOne,} Rasulgarh, Bhubaneswar- 751 010,^{is hereby appointedas Liquidator of the} Corporate Debtor, since he has^{given his consent to be so appointod.This} appointment is subject to his^possessing a^{valid Authorisationfor} Assignment (AFA) issued by the Insolvency^{ProfessionalAgency (IPA) of} which he is a professional member, in^{termsof regulation7A of the} Insolvency and Bankruptcy Board of India^{(insolvencyProfessionals)} Regulations, 2019.

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(ii i) The Liquidator is directed to adhere to Section 33(1) (ii) &^{(iii) and} disclrarge his powers and duties as specified under Section 35 to 4l^{of IBC,} 2016 and meticulously adhere to the Rules and Regulations issued^by IBBI in this regard from time to time.

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(iv) Public Notice as contemplated under section 33(1) of the Code shall^be issued in English daily "Hitavada" and once in the regional language newspaper "Dainik Bhaskar.

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(v) A11 the powers of the Board of Directors of the Corporate Debtor and of its key managerial personnel shall cease to exist in accordance with section 34(2) of the Code. These powers shall henceforth vest in the Liquidator.

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(vi) The personnel of the Corporate Debtor shall extend all assistance and cooperation to the Liquidator as may be required by him in the Liquidation process of the Corporate Debtor.

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(vii) On initiation of the Liquidation process but 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 a suit or other legal proceeding on behalf of the Corporate Debtor with^prior

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IN THE NATIONAL COMPANY^{LAW TRIBUNAL} CUTTACKBENCH

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rA (IB) s3lcBll202l in CP^(IB) No. 52/CTB/2020 ln re: Liquitlation of^{Raipur Polymerc PrlvateLimited}

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, approval of this Adjudicating Authority,^{as provided in section 33(5)of the} Code read with its proviso.

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(viii) In accordance with section 33(7) of the Code, this^{liquidationorder shall be} deemed to be a notice of discharge^{to the officers,employees and workmen} of the Corporate Debtor, except to the^{extentof the businessof the Corporate} Debtor continued during the liquidation^{processby the liquidator.}

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(ix) In terms of Section 33(lXbXiii), the Liquidator^{shall flle a copy of this Order} with the Registrar of Companies, Chhattisgarh,^{Bilaspur,withinwhose} jurisdiction the Corporate Debtor is registered. Additionally, the Registry shall also forward a copy of this Order to the^{Registrarof Companies,} Chhattisgarh, B ilaspur.

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(x) The application bearing IA^(IB) No. 53/CB 12021 shall^{standdisposed of in} accordance with the above directions.

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(ri) CP (IB) No.52lCTB12020 to come up for filing of^{periodical report by the} Liquidator on 29.10.2021.

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(xii) The Registry is directed to send e-mail copies of the order forthwith to all the parties and their Ld. Counsel for information and for taking^necessary steps.

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