Bank of Baroda Vs. Rotomac Global Pvt Ltd. and Roromac Exports Pvt Ltd. [CP No. (IB) 70/ALD/2017 With CA No.74/2018] - Synopsis
Team SoOLEGAL 25 Jan 2021

In this case, Bank of Baroda Vs. Rotomac Global Pvt Ltd. and Roromac Exports Pvt Ltd. [CP No. (IB) 70/ALD/2017 With CA No.74/2018], before the National Company Law Tribunal, Allahabad Bench, an application under Section 7 of Insolvency Bankruptcy Code, 2016, was approved against corporate debtors. At the Company of Creditors meeting which was held on 20th February, 2018, Resolution Professional had confirmed that the Corporate Debtor did not attend the meeting because the CBI raid was pending on the Corporate Debtor. Resolution Professional further told the Company of Creditors that the 180-day CIRP cycle is expected to be completed on 19th March, 2018, and thus requested that the CIRP be extended by 90 days. In e-voting, 96.08 % and 97.01% of Company of Creditors voted against Rotomac Global Pvt Ltd and Rotomac Exports Pvt Ltd respectively in the matter of extension of CIRP. Resolution Professional had lodged an application under Section 33 (1)(a) of Insolvency Bankruptcy Code, 2016 for the commencement of liquidation proceedings against corporate debtors.
The Bench was of the view that, pursuant to Section 33(1)(a) of the Code, an application can be submitted for the commencement of liquidation of Corporate Debtor pursuant to Chapter III of the Code in the event that no resolution plan is received before the expiry of the CIRP. The Resolution Professional had offered to prolong the CIRP term by another 90 days on the basis that the time left to finish the CIRP was very short. Resolution for the continuation of the CIRP failed as no resolution proposal was received within 180 days of the commencement of the CIRP application, and thus, the application under section 33(1)(a) of Insolvency Bankruptcy Code, 2016, for initiation of Liquidation had been admitted against the corporate debtor by NCLT. The liquidator was also directed to send a status update on the liquidation process within 30 days.

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