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2024 Supreme(Online)(NCLT) 1831
NATIONAL COMPANY LAW TRIBUNAL
Shri K. Biswal, Member (Judicial), Shri. Manoj Kumar Dubey, Member (Technical)
Bank of Nova Scotia – Appellant
Versus
M/s Opta Infrastructure Limited – Respondent
IA No.124/2022|C.P. No.125/2014|T.P. No.1/2019
For the RP/Applicant: Shri. Uday Shankar
For the Respondent:
The court affirmed that a Corporate Debtor must be liquidated under Section 33 of the Insolvency and Bankruptcy Code if no resolution plan is submitted within the prescribed time.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 33(1) - Liquidation of Corporate Debtor - Application filed by the Resolution Professional for liquidation as no resolution plan was received before expiry of the CIRP period - The Corporate Debtor, M/s Opta Infrastructure Limited, is directed to be liquidated as per the provisions laid down in the IBC. (Paras 10, 15)
(B) Corporate Insolvency Resolution Process (CIRP) - Requirement for Resolution Plan - If no resolution plan is submitted within the prescribed time frame, the Adjudicating Authority shall order liquidation - The conditions for initiating liquidation were satisfied as per Section 33. (Paras 11, 12)
Facts of the case:
Application filed by the Resolution Professional under Section 33(1) of IBC for liquidation of M/s Opta Infrastructure Limited after the Committee of Creditors decided on liquidation due to no resolution plan being received within the stipulated period.
Findings of Court:
Liquidation has been ordered as the Corporate Debtor failed to submit a resolution plan within the mandatory time frames set under the IBC.
Issues: The court addressed whether the conditions for liquidation under Section 33(1) were met, focusing on the failure to receive a resolution plan.
Ratio Decidendi: The court found that since the CIRP period lapsed without any resolution plan being received, liquidation was necessary, ensuring compliance with Section 33 of the IBC.
Result: I.A No. 124 of 2022 stands disposed of, directing liquidation of the Corporate Debtor.
| Table of Content |
|---|
| 1. details of the liquidation process and creditor involvement. (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. confirmation of conditions for liquidation under ibc. (Para 10 , 11 , 12) |
ORDER
I.A No.124/2022
Per: Manoj Kumar Dubey, Member (Technical)
1. This Application has been filed on 23.02.2022 by Mr Vedagiri Venkata Krishnamurthy, Resolution Professional (“RP”) of M/s. Opta Infrastructure Limited ("Corporate Debtor/CD”) under Section 33 (1) of the Insolvency and Bankruptcy Code, 2016 for passing an order of Liquidation in the matter of M/s Opta Infrastructure Limited (Corporate Debtor) and to appoint the RP as the Liquidator for initiation of Liquidation process of the Corporate Debtor etc.
2. CP (IB) No. 125/BB/2014 (T.P. No. 1 of 2019) filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by “Bank of Nova Scotia” to initiate Corporate Insolvency Resolution Process (in short ‘CIRP’ against the Corporate Debtor was admitted on 25.07.2019. The applicant herein i.e., Mr. Vedagiri Venkata Krishnamurthy was appointed as Interim Resolution Professional (IRP), pursuant to which paper publications inviting claims from creditors of the Corporate Debtor as per Regulation 6(3) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 was made by the IRP on 8.08.2019.
3. On the basis of claims received and admitted from the creditors, the applicant constituted the CoC which held its first meeting on 4.09.2019. In the said meeting of CoC, the interim resolution professional gave consent to act as Resolution Professional. As per section 22(3)(a) of the IBC, 2016 the appointment of RP was communicated to this Tribunal on 11.11.2019.
4. The RP in the 2nd CoC meeting held on 21.11.2019 highlighted that the CD has a land parcel in Hassan allotted to it Karnataka Industrial Area Development Board (KIADB) as per the provisions of the lease cum sale agreement entered between the two parties. The RP stated that as per the lease deed there exists an option to surrender the land to KIADB seeking return of allotment consideration (with 25% consideration being forfeited along with unpaid rents, interest etc). The RP mentioned that it is the best option for value maximisation considering no development had taken place on the land over the last 9 years. The RP also mentioned that another parcel of land in Nanjangud Taluk, Mysore is under the name of CD however the land agreement pertaining to the land has already been cancelled about three years back. The RP requested the CoC members to provide the status of the same.
5. In the fourth CoC meeting held on 27.01.2020 the CoC members agreed to RPs suggestion of meeting KIADB officials and have a tripartite meeting to get clarity on the status of land and the option to surrender the same as per the lease cum sale agreement. Subsequently on 3.02.2020 RP along with the CoC members met KIADB to discuss the viability of surrendering the land parcels situated in Hassan and Nanjangud respectively. The RP on 10.03.2020 wrote to KIADB after receiving consent from Bank of Nova Scotia seeking details on amount available for refund and expected timelines for the refund on surrender of Hassan Land. In the 7th CoC meeting which was on 13.03.2020 the RP requested that IndusInd Bank also provide confirmation in respect of the surrender of Nanjangud land (which was exclusively mortgaged to IndusInd Bank).
6. In the 11th CoC meeting held on 28.09.2020 it was noted that on 27.06.2020 270 days in the CIRP have already expired and no resolution plan has been received by the RP till date. Additionally, the status on refund of the amount remitted pertaining to the Hassan Land parcel was not definitive due to non-availability of original documents pertaining to the lease agreement by the CD. Pursuant to the above, a resolution was passed by the COC that since no resolution plan is received the CD will go for liquidation as per Section 33 (1) of the Code and
