Allowed

In the matter of Minesh Prints Ltd. [Ia 2145-2020, Ia 87,219 &1664-2021 in Ca 09-2021 in C.P.(IB)4461-MB-2019]

NCLT15 Sept 2023IA 2145-2020, IA 87,219 &1664-2021 in CA 09-2021 in C.P.(IB)4461-MB-2019

Case brief

AI extract

What is this about?

The NCLT Mumbai Bench allowed applications seeking exclusion of lockdown days from CIRP timeline and admitted the corporate debtor into liquidation, appointing Mahesh Sureka as Liquidator with specific fee and powers under the Insolvency and Bankruptcy Code.

What did the court decide?

Exclusion of 133 days from CIRP; admission of Corporate Debtor into liquidation; appointment of Mahesh Sureka as Liquidator; cesser of moratorium.

In the matter of Minesh Prints Ltd. [Ia 2145-2020, Ia… — Insolvency and Bankruptcy | NCLT (2023)

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NATIONAL COMPANY LAW TRIBUNAL

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COURT ROOM NO. 1, MUMBAI BENCH

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Item No. 32

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IA 2145/2020 IA 87/2021 IA 219/2021 IA 1664/2021 CA 09/2021 IN

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C.P.(IB)4461/MB/2019

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CORAM:

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SH. PRABHAT KUMAR JUSTICE VIRENDRASINGH BISHT (Retd.) HON’BLE MEMBER (TECHNICAL) HON’BLE MEMBER (JUDICIAL)

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ORDER SHEET OF THE HEARING ON 15.09.2023

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NAME OF THE PARTIES: MINESH PRINTS LTD

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Section 60(5), 12(2), 45(1) 60(2) & 10 of the Insolvency and Bankruptcy Code, 2016

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________________________________________________________________

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ORDER

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CA 09/2021

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1) Mr. Mahesh Sureka, Resolution Professional of the Corporate Debtor is present.

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2) The present Company Application has been filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 r/w Regulation 40 C of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and the limited prayer in the present Company Application is for exclusion of time of total 133 days from 20.03.2020 to 31.07.2020.

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3) Applicant submits that vide Order dated 04.03.2020 passed by this Bench, the Applicant herein was appointed as an Interim Resolution Professional of the Corporate Debtor.

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4) Applicant further submits that due to outbreak of COVID-19, there had been restrictions in each part of the state and precautionary measures were in place to check the spread of corona virus for which guidelines were issued by Municipal Corporation on time to time basis and Section 144 of CRPC was invoked which restricted people to assemble at one place where five or more peoples gathering can be expected. Applicant hence submits that the said period of lockdown ordered by the Central Government and State Governments shall be excluded from the period of Corporate Insolvency Resolution Process of the Corporate Applicant.

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5) Having considered the submissions and on perusal of averments made in the present Company Application, this Bench allows the present Company Application bearing CA No. 09 of 2021 , thereby excluding a period of 133 days from 20.03.2020 to 31.07.2020 , lost due to the lockdown imposed in the wake of Covide-19, from the period of Corporate Insolvency Resolution Process of the Corporate Applicant.

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6) With the aforesaid observation, the Company Application is disposed of.

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IA 219/2021

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1) Mr. Mahesh Sureka, Resolution Professional of the Corporate Debtor is present.

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2) The present Company Application has been filed under Section 12(2) of the Insolvency and Bankruptcy Code, 2016 r/w Regulation 40 of the Insolvency and Bankruptcy Code, 2016 and the Applicant prays for the following Reliefs:

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(a) This Honourable Tribunal be pleased to pass appropriate orders for extend of CIRP period for 90 days.

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(b) In case the Honourable Tribunal pass the Order for Liquidation u/s 33 than the 100% of CoC members have confirmed in writing that present Resolution Professional will continue to act as the Liquidator .

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3) Resolution Professional of the Corporate Debtor submits that the present Interlocutory Application was filed for seeking extension of 90 days from Corporate Insolvency Resolution Process of the Corporate Applicant; however, this Application has come up on Board after substantial lapse of time and the period which has been prayed that too got expired.

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4) Resolution Professional further informed this Bench that the Resolution in the case of the present Corporate Applicant is not feasible and accordingly, submits that the Committee of Creditors in their 5^th Meeting held on 28.12.2020, resolved and decided that the existing Resolution Professional Mahesh R Sureka will continue to act as Liquidator of the Corporate Applicant at fixed fee of Rs.

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2,00,000 plus GST plus expenses and this cost will form part of Liquidation Cost.

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5) We heard the Counsel and finds that the Corporate Debtor was admitted into

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CIRP on 04.03.2020 and the Resolution in the case of the present Corporate Applicant is not feasible. Accordingly, this Bench considers that the Corporate

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Debtor be admitted into Liquidation process in terms of Section 33 of the Insolvency and Bankruptcy Code, 2016 on account of expiry of approximately Three (3) Years.

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6) The Resolution Professional confirmed that CoC has recommended to continue him as Liquidator.

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7) The present Resolution Professional has also given his written consent to act as Liquidator of the Corporate Debtor. Accordingly, the Liquidation is ordered.

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a) The Corporate Applicant ( i.e. MINESH PRINTS LIMITED ) shall

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be liquidated in the manner as laid down in Chapter-III of the Code. b) Mr. Mahesh Sureka , an Insolvency Professional (IBBI Registration No. IBBI/IPA-001/IP-P00413/2017-18/10736 , is appointed as the Liquidator of the Corporate Applicant.

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c) The Liquidator for conduct of the liquidation proceedings would be entitled to the fixed fee of Rs. 2,00,000 plus GST plus expenses, as already decided by the Members of Committee of

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Creditors. This cost shall form part of Liquidation Cost.

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d) The Moratorium declared under Section 14 of the IBC 2016 shall be ceased to operate here from.

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e) Liquidator shall issue public announcement stating that Corporate Applicant is in liquidation.

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f) The Liquidator shall endeavour to sell the Company as a going concern during the liquidation in terms of Regulation 32A of the Liquidation Process Regulations. In case, he is not able to do so within a period of 90 days from this date, he shall proceed in accordance with clauses (a) to (d) of Regulation 32 of the Liquidation Process Regulations.

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g) Subject to section 52 of the IBC 2016 no suit or other legal proceedings shall be instituted by or against the Corporate Debtor. This shall however not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

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h) All powers of the Board of Directors, Key Managerial Personnel and partners of the Corporate Applicant shall cease to have effect and shall be vested in the Liquidator.

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i) The liquidator shall exercise the powers and perform duties as envisaged under Sections 35 to 50 and 52 to 54 of the Code, read with Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016.

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j) Personnel connected with the Corporate Applicant shall extend all assistance and cooperation to the Liquidator as will be required for managing its affairs.

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k) The Liquidator shall submit progress reports as per Regulation 15 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

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l) The Liquidator is hereby Authorized to represent the Corporate Applicant before the Government Authorities, if need be.

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m) This Order shall be deemed to be a notice of discharge to the officers, employees and workmen of the Corporate Applicant, except when the business of the Corporate Applicant is continued during the liquidation process by the Liquidator.

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n) Copy of the Order shall be furnished to the Insolvency and Bankruptcy Board of India, New Delhi; Regional Director (Western Region), Ministry of Corporate Affairs; Registrar of Companies & Official Liquidator, Maharashtra, the Registered Office of the Corporate Applicant; and the Liquidator.

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8) With the aforesaid observations and directions, the Interlocutory Application

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bearing IA No. 219 of 2021 , stands disposed of as Allowed.

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9) There would however be no order as to costs. Ordered Accordingly.

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IA 2145/2020 IA 87/2021 IA 1664/2021

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1) Mr. Viraj Parikh, Ld. Counsel for the Applicant/Suspended Board of Directors is

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present.

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2) Since, the Resolution Professional becomes functus officio and he has not yet

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taken the charge of the Corporate Applicant as the Liquidator, this Bench adjourned these matters to 26.10.2023, for further consideration and hearing.

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Sd/Sd/-

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PRABHAT KUMAR JUSTICE VIRENDRASINGH BISHT MEMBER (TECHNICAL) MEMBER (JUDICIAL)

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Vedant Kedare

In the matter of Minesh Prints Ltd. [Ia 2145-2020, Ia 87,219 &1664-2021 in Ca 09-2021 in C.P.(IB)4461-MB-2019]

Case brief

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In the matter of Minesh Prints Ltd. [Ia 2145-2020, Ia 87,219 &1664-2021 in Ca 09-2021 in C.P.(IB)4461-MB-2019]

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