Jasoda Gulliya Vs. M/s. Idzire Hospitality Private Limited.. - Though the application suggests that the name of the RP to be appointed as Liquidator, but in the wake of the decision circulated by IBBI vide Circular No. Liq12011/214/2023-IBBI/840 dated 18.07.2023, when the CD goes into liquidation, the IRP/RP cannot be appointed as liquidator.

 NCLT ND-II (2023.12.05) in Jasoda Gulliya Vs. M/s. Idzire Hospitality Private Limited..[IA-3124/2023, IA-3125/2023 IA-3126/2023, IA-3526/2023 in (IB)-445(ND)2020] held that; 

• Though the application suggests that the name of the RP to be appointed as Liquidator, but in the wake of the decision circulated by IBBI vide Circular No. Liq12011/214/2023-IBBI/840 dated 18.07.2023, when the CD goes into liquidation, the IRP/RP cannot be appointed as liquidator.

Excerpts of the Order;

IA-3124/2023: In view of the averments made in para 7 of the petition, the composition of the revised CoC is taken on record. 

The IA stands disposed of. 

IA-3125/2023: In view of the averments made in para 12 of the application, the period from 28.07.2021 to 07.12.2022, during which Mr. Manoj Kumar Singh IRP remained in position, is excluded from the CIRP process, as Mr. Manoj Kumar Singh was facing disciplinary action and did not discharge any functions. The order dated 07.12.2022 passed in IA-3727/2021, in terms of which Mr. Manoj Kumar Singh was discharged as IRP is reproduced thus: Accordingly, the IA stands allowed. 

IA-3126/2023: In view of the resolution dated 30.01.2023 passed by CoC in terms of the provision of Section 22 of IBC, 2016, the report regarding the appointment of IRP as RP is taken on record. 

IA stands disposed of. 

IA-3526/2023: The Ld. Counsel appearing for the Applicant could draw our attention to the resolution dated 05.06.2023 passed by the CoC for initiating the Liquidation of the CD with a 100% vote share. The relevant excerpt of the resolution i.e., Item No. 9 reads thus:  . . . . 

As the CoC has already decided to liquidate the CD, in terms of the provisions of Section 33 (2) of IBC 2016, the same is ordered to be liquidated. Though the application suggests that the name of the RP to be appointed as Liquidator, but in the wake of the decision circulated by IBBI vide Circular No. Liq12011/214/2023-IBBI/840 dated 18.07.2023, when the CD goes into liquidation, the IRP/RP cannot be appointed as liquidator. The circular dated 18.07.2023 reads thus: 

Hence, the prayer for the appointment of IRP/RP as Liquidator is rejected. Accordingly, from the panel of IBBI, Mr. Ajay Gupta with Reg. No IBBI/IPA- 001/IPP00140/2017-18/ 10304, e-mail id: ip.ajaygupta@corpvisory.com (Mobile No. 9871277445), is appointed as the Liquidator of the Corporate Debtor to carry out the liquidation process, inter alia, in terms of the following directions: 

a) The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 (viz. Sections 35, 36, 38, 39 and 41 thereof) and other relevant rules and Regulations including Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 as amended up to date, enjoined upon him. 

b) The Liquidator shall issue the public announcement that the Corporate Debtor is in liquidation. In relation to officers/ employees and workers of the Corporate Debtor, taking into consideration Section 33(7) of IBC, 2016, this order shall be deemed to be a notice of discharge. 

c) The Liquidator shall investigate the financial affairs of the Corporate Debtor particularly, in relation to preferential transactions/ undervalued transactions and such other like transactions including fraudulent preferences and file a suitable application before this Adjudicating Authority. 

d) In terms of section 178 of the Income Tax Act, 1961, the Liquidator shall give necessary intimation to the Income Tax Department. In relation to other fiscal and regulatory authorities which govern the Corporate Debtor, the Liquidator shall also duly intimate about the order of liquidation. 

e) The order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and a fresh Moratorium under section 33(5) of the Insolvency and Bankruptcy Code shall commence. 

f) The Liquidator is directed to investigate the financial affairs of the Corporate Debtor in terms of the provisions of Section - 35(1) of IBC, 2016 read with relevant rules and regulations and also file its response for disposal of any pending Company applications during the process of liquidation. 

g) The Liquidator shall submit a Preliminary report to this Tribunal within 75 (seventy-five) days from the liquidation commencement date as per regulation. 13 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016. Further such other or further reports as are required to be filed under the relevant Regulations, in addition, shall also be duly filed by him with this Adjudicating Authority.

h) Copy of this order be sent to the Financial Creditors, Corporate Debtor and the Liquidator for taking necessary steps and for extending the necessary cooperation in relation to the Liquidation process of the Corporate Debtor, viz., company-in-liquidation.

i) The Registry is directed to communicate this order to the Registrar of Companies, having jurisdiction over the Corporate Debtor and the Insolvency and Bankruptcy Board of India 

h) It goes without saying that fee of the Liquidator would be payable in terms of the provisions of Section 34 (7) of the IBC, 2016 read with Regulation 4 of IBBI (Liquidation Process) Regulation 2016. IA stands disposed of.

---------------------------------------------