Go Airlines (India) Limited Vs Shailendra Ajmera (NCLT Delhi)
Conclusion: Since the decision taken by the CoC for liquidation in commercial wisdom of the CoC should not be interfered with by the Adjudicating Authority and the resolution for liquidation of the Corporate Debtor was approved by CoC with 100% voting, therefore, this Adjudicating Authority found no merit in interfering with the commercial wisdom of the CoC.
Held: Applicant submitted that the Adjudicating Authority vide its order had initiated the Corporate Insolvency Resolution Process against M/s Go Airlines (India) Limited (‘Corporate Debtor’), an application filed under Section 10 of the Code and appointed Mr. Abhilash Lal as the Interim Resolution Professional (IRP) of the Corporate Debtor. Pursuant to his appointment, the IRP constituted the CoC and the first meeting of the CoC was convened on 09.06.2023, wherein, the members of the CoC unanimously passed a resolution to replace the IRP and appoint the Applicant, Mr. Shailendra Ajmera, as the Resolution Professional (RP) of the Corporate Debtor. Subsequently, the Adjudicating Authority vide its Order dated 15.06.2023 appointed the Applicant as RP of the Corporate Debtor. Applicant submitted that the Resolution Plans received were neither compliant with the mandatory requirements of the IBC nor commercially acceptable to the CoC, therefore, in view of the unviability of resuming commercial operations of the Corporate Debtor, the CoC had opted for the liquidation of the Corporate Debtor. Applicant has preferred the present application for passing the order of Liquidation of the Corporate Debtor i.e. Go Airlines (India) Limited in terms of the provisions enumerated under Section 33(2) of the IB Code, 2016 and to appoint Mr. Dinkar T. Venkatasubramanian as the Liquidator in the matter other than the resolution professional of a Corporate Debtor. Section 33(2) of the Code provided that the Adjudicating Authority should pass an order for liquidation of the Corporate Debtor, if the CoC by more than 66% (Sixty-Six Per Cent) of votes passes the resolution for liquidation. In the present case, the CoC with 100% (One Hundred Per Cent) has approved the liquidation of Corporate Debtor. It was held that CoC in the legislative scheme was empowered to take decision to liquidate the Corporate Debtor, any time after its constitution and before confirmation of the resolution plan. The aforesaid resolution was approved by the members of CoC unanimously with 100% voting shares, in its 37th meeting held on 23.07.2024. It was well settled that decision taken by the CoC for liquidation in commercial wisdom of the CoC should not be interfered with by the Adjudicating Authority. Further, the resolution for liquidation of the Corporate Debtor was approved by CoC with 100% voting. Therefore, this Adjudicating Authority found no merit in interfering with the commercial wisdom of the CoC. The application was allowed by ordering liquidation of the corporate debtor
