NCLT Mumbai Passes Liquidation Order Against Ezeego One Travel & Tours Ltd.
The National Company Law Tribunal, (NCLT) Mumbai, by its division-member bench comprising of Kuldip Kumar Kareer (Judicial Member) and Shyam Babu Gautam (Technical Member) has ordered liquidation of Ezeego One Travel & Tours Ltd.
In the present case, an application under Section 33 of the Insolvency and Bankruptcy Code, 2016 (hereinafter called “the Code”) was filed by the Applicant/Resolution Professional (RP) - Mr. Gaurav Ashok Adukia of Ezeego One Travel & Tours Limited seeking orders for Liquidation of Ezeego One Travel & Travels Ltd. (Corporate Debtor).
On perusal of the application, the NCLT noted that a Company Petition was filed by YES Bank Ltd. (Financial Creditor), under Section 7 of the Code and was admitted by this Tribunal vide an Order dated 9th March 2021 and the Applicant was appointed as the Interim Resolution Professional (IRP).
A Public announcement in Form A was made pursuant to Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter called “CIRP Regulations”) inviting the creditors of the Corporate Debtor to file their claims before the Applicant by 2nd April 2021. Subsequently, the Committee of Creditors (CoC) consisting of ten Financial Creditors was constituted post which a total of Nine (9) meetings were held in the course of the CIRP.
In the Second Meeting held on 2nd June 2021, the CoC discussed taking control of bank accounts, appointment of professionals and other facets related to the CIRP. In the Third Meeting of the CoC held on 19th July 2021, the publication of brief particulars of the invitation of Expression of Interest (“EOI”), the EOIs received, and other developments were discussed.
Further, in the Fourth Meeting of the CoC held on 3rd September 2021, it was resolved, inter alia, to permit the Applicant to file an Application before this Tribunal seeking exclusion of the time period elapsed due to the pandemic and to seek extension of the CIRP period for 90 days.
After filing of the Application, the Tribunal had extended the CIRP period but declined the request for exclusion vide Order dated 5th October 2021.
To this, the Applicant had appealed against this Order before the Hon’ble National Company Law Appellate Tribunal (NCLAT) and subsequently, vide Order dated 12th April 2022, the exclusion of the period of pandemic was allowed and the CIRP stood extended till 12th June 2022.
The NCLT noted that the Applicant had undertaken various actions for recovery of monies due to the Corporate Debtor and engaged technical professionals with the permission of the CoC.
Further, in the Eighth Meeting held on 9th June 2022, it was resolved to seek permission of the Tribunal for extension of the CIRP period by 60 days which was granted and the CIRP period stood extended till 14th September 2022. In the Ninth Meeting of CoC held on 13th September 2022, the Applicant had apprised the members of the CoC that no Resolution Plan was received and therefore, a resolution seeking Liquidation of the Corporate Debtor and the appointment of the Applicant as the Liquidator was placed before the CoC for their consideration.
Thereafter, the resolutions were put to vote in the meeting and were approved by the CoC with 99.46% vote share.
While noting the averments and submissions forwarded by the Applicant/Corporate Debtor, the NCLT was satisfied that the present application was a fit case for liquidation and, therefore, ordered the Liquidation of the Corporate Debtor.
It further ordered that the Corporate Debtor- Ezeego One Travel & Tours Limited, shall be liquidated in the manner as laid down in Chapter-III of the Code and appointed Mr. Gaurav Ashok Adukia, the RP of Ezeego One Travel & Tours Limited as their Liquidator.