Ravikumar Duraisamy, Member - (1.) The Company Application bearing CA No.209 of 2017 in CP(IB) /49/7/HDB/2017 is filed by Mr. V. Venkatachalam, Resolution Professional (RP) , U/s.12(2) of the IBC, 2016, R/w Reg. 40 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, by interalia seeking to provide an extension of time of the CIRP considering the insolvency commencement date as 20.07.2017.
(2.) The Brief facts leading to the filing of the present company application, are as follows: a. Mr. Venkatachalam, RP has filed this present company application seeking extension of further period of 90 days time beyond originaM 80 days. b. Mr. Venkatachalam, RP submitted that the tribunal appointed IRP and imposed moratorium on 20.07.2017. Accordingly public announcement was made on 04.08.2017. The public announcement also specified the estimated date of closure of date of CIRP as 15.01.2018. The IRP has constituted the Committee of Creditors (CoC) on 18JQ8JE017. Subsequently the IRP was replaced by appointing him as RP by the Tribunal on 10.10.2017. c. Further he submitted that he has convened the next COC meeting on 19.08.2017 to go ahead with the continuation of CIRP in question. Accordingly RP has initiated process of authorization of bank payments by introducing himself as joint authorized signatory for current accounts and directed relevant personnel of the Corporate Debtor not to release any payment without the review of RP. Also, Note for Payment Approval as proposed and approved by the Members in Meeting of CoC has been implemented for better monitoring and control of payments. d. The RP evaluated the Liquidation Value determined by the valuers appointed by the IRP. The RP had received only one report of valuer before the second meeting of the CoC dated 10.11.2017. The valuer had valued only immovable property and other tangible assets. Other assets like inventory, advances, receivables and deposits were not valued in accordance with the scope provided and in accordance with Regulation 35(2) (a) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. e. The RP received the report of the second valuer after the completion of the Second Meeting of the CoC dated 10.11.2017. The second valuer had also not valued inventory, advances, receivables and deposits in accordance with Regulation 35(2) (a) of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. In the Second Meeting of CoC, the RP appointed a third valuer, in accordance with Regulation 35(2) (b) of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 to determine liquidation value of the Corporate Debtor, who have already conducted the physical verification of Inventory and Fixed Assets and assessed other assets of the Corporate Debtor as per Regulation 35 and are in the final process of determining the liquidation value of all assets of the Corporate Debtor. The RP had conducted discussion with the first and second valuer appointed by the IRP, emphasizing the need to include other assets like inventory, advances, receivables and deposits as part of the valuation and provide an amended liquidation value at the earliest. f. The RP owing to the facts and circumstances specified above, circulated a resolution to the CoC on 01.12.2017 requesting extension of CIRP in accordance with Section 12(2) of the Code read with Regulation 40 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Financial creditors have approved the circular resolution dated 01.12.2017.
(3.) Further they submitted that the original time granted is not sufficient and further time of 90 days beyond 180 days is required.;