IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH – I, CHENNAI IA/680/CHE/2023 in CP (IB)/146/CHE/2020 (Filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016) In the matter of SOUTHERN INVESTMENTS PRIVATE LIMITED S Kangayan, Resolution Professional of Southern Investments Private Limited Regn No IBBI/IPA002/N00866/2019-2020/12770 Plot No 81, 3rd Street, Phase 1, Dollars Colony, Tambaram East, Chennai- 600 127 … Applicant Order Pronounced on 01^st March 2024 CORAM:

SANJIV JAIN, MEMBER (JUDICIAL)

VENKATARAMAN SUBRAMANIAM, MEMBER (TECHNICAL)

For Applicant : Mr. Jerin Asher Sojan, Advocate Shri. T.K. Baskar, Senior Advocate

O R D E R

(Heard through Hybrid Mode)

This is an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 seeking following Reliefs:

a) To pass an order of liquidation of the Corporate Debtor in terms of Section 33(2) of Insolvency and Bankruptcy Code, 2016.

b) Appoint the Applicant as the Liquidator of the Corporate Debtor.

c) Pass such other order or orders as this Hon’ble Tribunal may deem fit.

2. From the averments made in the application, it is found that Corporate Debtor was in the business of Real Estate Development.

3. It is stated that an insolvency proceedings (CIRP I) initiated against the Corporate Debtor in CP/IB/202/CHE/2018 was closed by Hon’ble Supreme Court on 20.11.2018 ( in WP( C) 452 of 2018) leaving open the rights of the parties to avail appropriate legal remedies.

4. It is stated that the Corporate Insolvency Resolution Process (CIRP 2) of the Corporate Debtor was initiated by the order of the tribunal on 15.03.2021 on an application under Section 9 of the Code by one Mr. Baiju Cheriyan in IBA/IBC/ 146/CHE 2020 and Mr. Y.N. Ramachandran was appointed as the Interim Resolution Professional (IRP).

5. It is stated that subsequent to appointment as Interim Resolution Professional, a public notice dated 02.04.2021 was given Financial Express (English) and Dinakural (Tamil). It is stated that vide order dated 13.02.2023 in IA IBC 1388 CHE 2022, the applicant, S Kangayan was appointed as the Resolution Professional , as the earlier IRP was not keeping well. It is stated that during the period from 15.03.21 till the New Resolution Professional took over, no CoC meetings were conducted.

6. It is stated that seven claims were received, out of which six were admitted, out of which Hedge Financial Ltd was the sole secured financial creditor and remaining five were Operational Creditors. It is stated that CoC constituted had the sole secured financial creditor viz.

M/s. Hedge Financial Services Ltd, as the member.

7. It is stated that the suspended Board of Directors had abandoned the Corporate Debtor, the CD’s registered office was not functional and the company did not have financial data available from 2018 onwards. It is further stated that the promoter had been imprisoned twice and there were no employees working with the Corporate Debtor.

8. It is stated that the applicant had conducted 3 CoC meetings on 06.03.2023, 25.03.2023 and 30.03.2023. It is further stated that in the 3rd CoC meeting, the sole financial creditor voted for liquidation and recommended the applicant as liquidator.

9. In the Form H dated 27.07.2023 submitted by the Resolution Applicant placed as SR No 3293 dated 04.08.2023, it is stated that there are no avoidance transactions against which applications have been filed.

10. We have considered the submissions and perused the record. The Corporate Debtor is in the business of Real Estate Development with most of the projects being in Kerela. In the 3rd CoC meeting it was deliberated that the liquidation may be initiated and a resolution to that effect was passed.

11. It is stated that in compliance of the tribunal order dated 18.09.2023, RP has filed a memo in SR No 4312 dated 09.10.2023 submitting the details of the claim filed by sole secured financial creditor along with loan agreements, Promissory Notes, Arbitration Awards, account statements, etc.

12.