Reliance Capital Limited Vs Win Trendz Exim Private Limited (NCLT Mumbai)
NCLT Mumbai held that application under section 33(2) of the Insolvency and Bankruptcy Code by Reliance Capital Ltd. for liquidation of Corporate Debtor [Win Trendz Exim Private Limited] allowed as approved by majority of 78.8% of CoC.
Facts- The Company Petition was filed by the Financial Creditor i.e. Reliance Capital Limited as per Section 7 of the Code to initiate Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor i.e., M/s. Win and Trendz Exim Private Limited. Vide Order dated 07.11.2019 the Corporate Debtor was admitted into CIRP and Mr. Pankaj Sham Joshi was appointed as the Interim Resolution Professional (“IRP”) of the Corporate Debtor.
The present Application has been filed u/s. 33(2) of Insolvency and Bankruptcy Code, 2016 read with applicable provisions of the Insolvency and Bankruptcy Code (Insolvency Resolution Process for Corporate Persons), 2016 by Mr. Pankaj Sham Joshi (Applicant).
Conclusion- Section 33(2) of the Code provides that the Adjudicating Authority shall pass an order for liquidation of the Corporate Debtor, if the CoC, by more than 66% of vote share passes the resolution for liquidation. It is observed that in the present case, as no expression of interest received in the process of CIRP of Corporate Debtor coupled with lack of information on the assets, financial information etc. of the Corporate Debtor due to non-cooperation by the Directors of the Corporate Debtor, the CoC was not inclined to once again invite expression of interest from prospective Resolution Applicants by republishing Form-G in the newspapers and hence, the CoC in their 9th meeting held on 10.02.2021 resolved by a majority of 78.8% vote to initiate the process of liquidation of the Corporate Debtor.
