NCLT Ahmedabad Orders Liquidation of Eskay K 'N' IT (India) Ltd.

New Liquidator Appointed to Expedite Liquidation Process Amidst Unresolved Insolvency Proceedings

In a significant development, the National Company Law Tribunal (NCLT) Ahmedabad bench has ordered the liquidation of Eskay K 'N' IT (India) Ltd., a corporate debtor embroiled in prolonged insolvency proceedings. The decision comes after the tribunal observed that the corporate debtor had been under insolvency for an extended period with no feasible revival plan in sight.

The application for liquidation was filed by Mr. Subrata Monindranath Maity, the erstwhile Resolution Professional (RP), under Sections 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, 2016. The tribunal has appointed Mr. Sunit Jagdishchandra Shah as the new liquidator from the Insolvency and Bankruptcy Board of India (IBBI) panel. Mr. Shah is tasked with conducting the liquidation process in accordance with the Code and relevant regulations.

The tribunal's order effectively ceases the moratorium declared on February 17, 2020, and all powers of the board of directors and key managerial personnel of Eskay K 'N' IT (India) Ltd. now vest with the newly appointed liquidator. The personnel of the corporate debtor have been directed to cooperate fully with the liquidator.

The liquidation process will follow the guidelines issued by the IBBI, with the liquidator required to investigate the financial affairs of the corporate debtor and issue public announcements to inform creditors and government departments of the liquidation order. The tribunal has also directed the Committee of Creditors (CoC) to contribute to any shortfall in liquidation costs, ensuring that the liquidation estate's value is proportionately allocated to cover proceedings.

This decision marks a pivotal moment for Eskay K 'N' IT (India) Ltd., aiming to resolve pending insolvency issues and achieve closure through an organized liquidation process. The tribunal emphasized the need for efficient conduct of the liquidation to ensure that creditors' claims are addressed appropriately.

Bottom Line:

Insolvency and Bankruptcy Code - Liquidation of Corporate Debtor - Appointment of new liquidator under Section 33 of the Insolvency and Bankruptcy Code, 2016.

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 33(1), 33(2), 33(4), 34(1), 35(1)

Mr. Ajit Kumar v. Committee of Creditors of Eskay K 'N' IT (India) Ltd. through, (NCLT)(Ahmedabad) : Law Finder Doc Id # 2817074