Ch Mohd Sharief Tariq, Member - (1.) The Application has been filed to order winding up of M/s. Tiruppur Surya Textiles Pvt Limited, which has been under the Corporate Insolvency Resolution Process (CIRP) since 14.06.2017, the period of 180 days expired on 12.12.2017 and an extension has been granted for 30 days vide Order dated 18.12.2017 with effect from 12.12.2017 which is expiring today.
(2.) It is on record that the CIRP has been initiated by the Corporate Debtor (for short 'CD') itself under Section 10 of the Insolvency And Bankruptcy Code, 2016 (in short I&B Code, 2016) by filing CP/467/(IB) /2017 and the application was admitted on 14.06.2017 when the commencement of the CIRP has started and the Interim Resolution Professional (IRP) was appointed. Thereafter, the Applicant has been appointed as Resolution Professional (RP) on the recommendation of Committee of Creditors (CoC) vide order dated 20.09.2017 passed by this Authority. The factual details recorded by the RP in the Application are as follows: i) The claims of debt received is Rs.230.73 Crores and admitted in respect of the CD is Rs. 166.66 Crores comprising Rs. 165.88 Crores due to Financial Creditors, Rs.0.78 Crores due to Operational Creditors, Rs.Nil due to workmen and employees Rs.Nil due to other creditors. The/ details of the claims admitted in this regard is annexed and marked with the Application as Exhibit-C. ii) The business of the CD was mainly a textile mill and the operations were at stand still even before the CIRP commencement as the manufacturing units were taken in possession of by the Financial Creditor. iii) The CD has its manufacturing facilities at Kalvarpatti Village of Vedasandur, Dindugul District and the facilities are partly on land owned by the CD and partly on land owned by the CD's promoters where the superstructure is put up by the CD. iv) There is no formal lease arrangement or permission for the CD to use the land of its promoters and the entire arrangement between the CD and its promoters over the land has been wholly informal and as such the right of use of the CD over the land and superstructure thereon is purely at the pleasure of the CD's promoters v) In such circumstances any person intending to revive the units of the CD by tendering a resolution plan to take over operations of the CD's facilities would be at risk of eviction from parts of the property immediately and would face the prospect of having to shift the manufacturing facility set up on lands which are not owned by the CD but are owned by its Directors, thus putting a serious question mark on the continuity of operations. vi) Though the Directors are guarantors and the lands owned by them are mortgaged to State Bank of India, a financial creditor of the CD, there is no possibility of the said lands being included in any resolution plan as the personal guarantor assets cannot be proceeded with under the CIRP of the CD. vii) In any event there is a large gap between the liquidation value and the admitted claims of the creditors and over and above that fresh claims have been received by the Applicant from 25 number of persons claiming to be Operational Creditors, whose claims have been admitted partially. viii) In sixth Meeting of the CoC held on 08.12.2017, wherein keeping in view of the serious situation prevailing, as elaborated in para Nos. 2(i) to (viii) hereinabove, a Resolution came to be passed by the CoC with 100% majority for liquidation of the Corporate Debtor viz., M/s. Tiruppur Surya Textiles Pvt Limited.
(3.) Therefore, on the recommendation of the CoC dated 08.12.2017 and the Minutes recorded during the said Meeting, the Application of the IRP is allowed. ORDER;