FA, 2020 amendment increasing...
In the present case, the Corporate Insolvency Resolution Process (CIRP) application filed by the operational creditor was admitted against the corporate debtor. Pursuant to the CIRP order, Interim Resolution Professional took over the management of the corporate debtor and issued newspaper publications inviting claims from creditors.
After verification of claims received, the Committee of Creditors was constituted, and the Resolution professional received two expressions of interest. However, the date for submission of resolution plans has been extended.
Even after various opportunities, no resolution plan was submitted. As a result, the CoC passed a resolution for liquidation of corporate debtors with 100 percent voting rights. Since no resolution plan was received by NCLT before the end of the maximum period of CIRP, liquidation of the corporate debtor was to be ordered.
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