The Tribunal can dispense with meeting requirements under Section 230 when 100% of creditors consent to a compromise scheme during liquidation proceedings.

O R D E R

(Heard through Hybrid Mode)

1. This application has been filed under Section 230 and other applicable provisions of the Companies Act, 2013 read with regulation 2B of the IBBI (Liquidation Process) Regulations, 2016, the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 and the NCLT Rules, 2016, by the Liquidator ofAshok Magnetics Limited being the Company Under Liquidation seeking the following reliefs:

i. to waive the notice of meeting and

ii. to permit the Applicant to file the petition for confirming compromise; and and for such other and further reliefs as the nature and circumstances of the case may require.

2. Before venturing into the merits of the Application as well as the Scheme for which approval inter-alia has been sought by the Liquidator from the Stakeholders for convening of the meeting or otherwise dispensing with, it is necessary for this Tribunal to go through the facts in relation to the Company under liquidation as averred in the Application as well as the proceedings bringing to the present state of affairs of the Company.

3. The Corporate Debtor was incorporated on 16.04.1993. Main objects of the Company are, to carry on in India or elsewhere in any country or state or part of the world the business of manufacturing, producing, altering, converting, processing, treating, improving, manipulating, extruding, milling, slitting, cutting, casting, forging, rolling and re-rolling of all shapes, sized, varieties, specifications, dimensions, descriptions and strength of iron and steel products including sponge iron, pig iron, malleable iron, S.G.iron, iron ore, steel, etc. Detailed objects are delineated in the Memorandum of Association annexed along with the application.

4. Corporate Debtor (herein after CD) was carrying on the business of manufacture of TMT steel bars used in the construction industry and such manufacturing was conducted at the factory of the Company situated at Eripakkam Village, in the State of Pondicherry.

5. Corporate Debtor for the purpose of its business availed loans from 3 banks viz. Central Bank of India, State Bank of India and Federal Bank Limited (subsequently assigned to Prudent ARC Limited). Such loans were secured by movable assets and also the land building and machinery at Eripakkam Village, Pondicherry and industrial land at Gummidipoondi. CD also availed loan from Religare Finvest Limited against the mortgage of the office property at Gopalapuram, Chennai.

6. Central Bank of India, State Bank of India, and Federal Bank filed a Section 7 Petition CP/551/2017 before this Tribunal. This Tribunal vide order dated 04.09.2017 admitted Corporate Debtor into Corporate Insolvency Resolution Process (CIRP).

7. The Applicant was appointed as the Resolution Professional. The Applicant filed the application for liquidation as no viable Resolution Plan was approved in respect of the CD. This Tribunal vide Order dated 09.11.2018 ordered for the liquidation of CD and appointed the applicant as the liquidator.

8. In respect of claims invited at the stage of Liquidation, the liquidator received only 3 claims. The table capturing the details of the claims received in Liquidation are as under:

9. Applicant states that though financial statements of the company reflected mortgage loan in respect of the office property at Gopalapuram, Chennai 600 086 as availed from Religare Finvest Limited, however, no claim was filed by the said lender either during CIRP or in Liquidation.

10. Three persons namely BKL Steels Private Limited, Dnepro Advisory Private Limited and Toughened Alloys & Steels Private Limited and few others filed