HERO STEELS LIMITED Vs. ROLEX CYCLES PRIVATE LIMITED

JUDGEMENT

(1.) Cp (IB) No. 37/Chd/Pb/2017 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for brevity, the 'Code') was admitted on 13.07.2017 declaring moratorium in accordance with Section 14 of the Code. Mr. Anil Kumar, registered Resolution Professional with the IBBI was appointed as Interim Resolution Professional vide Order dated 20.07.2017 with necessary directions. During pendency of the case, CA No.148/2017 was filed by the Canara Bank, the financial creditor to replace the Interim Resolution Professional with the applicant Mr. Nipan Bansal as the Resolution Professional. Vide order dated 25.09.2017, name of Mr. Nipan Bansal was forwarded to the IBBI for confirmation. After receiving confirmation from IBBI, Mr. Nipan Bansal was appointed as the Resolution Professional.

(2.) Admittedly the period of 180 days for completion of the resolution process as provided under Section 12 (1) of the Insolvency and Bankruptcy Code, 2016 (for brevity, the 'Code) expired on 08.01.2018. While monitoring the progress reports submitted by the Resolution Professional, Registrar of this Tribunal put up a note that the period of 180 days has expired and the Resolution Professional informed that the application for liquidation proceedings would be filed. Vide order dated 25.01.2018, the matter was directed to be listed on 31.01.2018 with notice to the Resolution Professional.

(3.) The Resolution Professional has filed CA No. 31/2018 stating therein that period of six months expired on 08.01.2018 but no resolution plan was received. Therefore prayer is made that in view of Section 33 (1) (b) (i), (ii) & (iii) of the Code, liquidation order may be passed as no resolution plan was received within the permissible period of 180 days. Mr. Vikas Rai Berry, Practising Company Secretary intends to intervene on behalf of Mr. Ashwani Kumar Prabhakar. However, in view of the mandate of Section 33 (1) of the Code, there is no alternative except to pass order of liquidation. It may be noticed that Mr. Nipan Bansal acting as Resolution Professional held meeting of committee of creditor on 19.01.2018 despite the period of 180 days having expired admittedly on 08.01.2018. Vide Agenda item No. 7 of the minutes of the 5th meeting of Committee of Creditors held on 19.01.2018, a resolution was passed authorising the Resolution Professional to move an application with the Tribunal under Section 33 (2) of the Code to pass order of winding up and vide item No. 8, approval was granted by recommending the name of Mr. Nipan Bansal as Liquidator.