NCLT Allows claim of Reliance Capital Ltd against Win and Trendz Exim Private Limited, orders Liquidation and Appoints Liquidator
The Corporate Debtor is directed to be liquidated in accordance with the provisions of the IBC and applicable regulations.

Reliance - Liquidator - Taxscan
Reliance - Liquidator - Taxscan
The Mumbai bench of the National Company Law Tribunal (NCLT) allowed the claim of Reliance Capital Ltd, against Win and Trendz Exim Private Limited, the corporate debtor's liquidation with the provision of the Insolvency and Bankruptcy Code(IBC), 2016 and appointed the liquidator.
The Application has been filed under Section 33(2) of Insolvency and Bankruptcy Code, 2016 ("theCode") read with applicable provisions of the Insolvency and Bankruptcy Code (Insolvency Resolution Process for CorporatePersons), 2016 ("CIRP Regulations") by Mr. Pankaj Sham Joshi ("Applicant").
The Company Petition was filed by the Financial Creditor i.e. Reliance Capital Limited as per Section 7 of the Code to initiate Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor i.e., M/ s. Win and Trendz Exim Private Limited. VideOrder dated 07.11.2019 the Corporate Debtor was admitted into CIRPof and Mr. Pankaj Sharn Joshi was appointed as the Interim Resolution Professional ("IRP") of the Corporate Debtor.
The Corporate Debtor was engaged in the business of cable subscriber services and internet service provider. The Corporate Debtor has an Authorised Share Capital of INR. and a paid-up Share Capital of INR. and the Corporate Debtor has two Directors namely, Mr. Bharat Lekhraj Harwani (DIN:OI 454272) and Ms. Saraswati Bharat Lekhwani (DIN: 01805851).
The IRP made a public announcement of initiation of CIRP on03.12.2019 in accordance with the provisions the Code and CIRP Regulations to invite claims from Creditors. The last date for filing of claims was 16.12.2019. In accordance with claims received, the IRP constituted the Committee of Creditors comprising of three Financial Creditors namely Reliance Commercial Finance Limited, Indostar Capital Finance Limited (Assigned to ARCIL) and It is submitted that there are no claims from any other Financial Creditors, Operational Creditors, Workman/ Employee/ Authorised Representative of Workmen and Employees received till the last date for submission of clairns i.e. 16.12.2019 or till date, other than the claims mentioned herein above.
Even though the valuers as mentioned above are appointed, since the possession of assets of the Corporate Debtor was not handed over to the Applicant, the said valuers have not been able to undertake Of valuation of the assets. Thus, in the 7th meeting Of COC it was recorded that without the valuation report, the COC is unable to consider and decide on any Resolution Plan which may be submitted by any prospective Resolution Applicant.
It was further recorded that the COC will not be able to vote of any Resolution Plan without being aware of Fair Market value or Liquidation Value of Corporate Debtor or was able to consider liquidating the Corporate Debtor and / or instruct the Applicant to file an application under section 33 of IBC.
As per the resolution passed in the meeting of COC held on 27.12.2019, the Applicant filed an Application UIs. 19(2) of IBC, being M.A. No. 408 of 2020, seeking order and direction against the Ex Directors. Subsequently, the Tribunal vide order dated 20.03.2020 allowed the said M.A. NO. 408 Of 2020 and the Ex-Directors and all concerned persons of the Corporate Debtor were directed to comply with / furnish to the Applicant within 7 days the relevant documents.
However, it is submitted that the Ex-Directors have failed to comply with the said order and have till date neither handed over the documents of Corporate Debtor to the Applicant nor have handed over the assets and management of the Corporate Debtor.
The Applicant has published an 'Invitation of Expression of Interest' in Form G on 13.03.202(). It is submitted that no expression of interest was received from any prospective Resolution Applicant till the Cut-off date of receipt of expression of interest i.e. 28.03.2020 or even any time thereafter.
Since there is no expression of interest received in the process of CIRP of Corporate Debtor coupled with lack of information on the assets, financial information etc of the Corporate Debtor due to non-cooperation by the Directors of the Corporate Debtor, the COC was not inclined to once again invite expression of interest from prospective Resolution Applicants by re publishing Form-G in the newspapers.
Further, the COC has nominated Mr. Anil Seetaram Vaidya to be appointed as a liquidator of the Corporate Debtor and the said Mr. Anil Seetaram Vaidya has accorded his consent to be appointed as the Liquidator of the Corporate Debtor.
The Applicant has filed the present Application seeking appropriate directions from this Tribunal under Section 33(2) of the IBC for initiating liquidation process against the Corporate Debtor and appointment of Mr. Anil Seetaram Vaidya as Liquidator and exercise all powers of a liquidator envisaged in the CIRP Regulations and Liquidation Regulations.
We note that the Applicant and COC have proposed Mr. Anil Seetaram Vaidya to act as the liquidator.
In view of the same, Sushil Mahadeorao Kochey, Member (Judicial) and Charanjeet Singh Gulati, Member (Technical)
appointed an Insolvency Professional from the IBBI Panel Mr. Anil Seetaram Vaidya to act as the Liquidator in terms of section 34 of the Code.The Corporate Debtor is directed to be liquidated in accordance with the provisions of the IBC and applicable regulations.
Clarification: There was a clarity issue in the earlier headline, which has now been corrected. As the author of the story, I sincerely apologise for the inconvenience caused.