Max Machinery Co. granted voluntary liquidation petition under Insolvency Code

The Tribunal allowed the voluntary liquidation petition of the applicant company, "Max Machinery Manufacturing Company Private Limited," under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company followed all procedural requirements, appointed Mr. Umesh Ved as the Liquidator, and communicated the liquidation process to statutory authorities. No objections were raised, and the company was ordered to be dissolved effective 29th May 2019. The Liquidator was instructed to inform relevant authorities within fourteen days. The Company Petition was granted and resolved accordingly.

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Issues Involved:
1. Voluntary liquidation of the applicant company under Section 59 of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with procedural requirements for voluntary liquidation.
3. Appointment and duties of the Liquidator.
4. Communication of liquidation process to statutory authorities.
5. Absence of objections from stakeholders and public.

Detailed Analysis:

1. Voluntary Liquidation of the Applicant Company:
The applicant company, "Max Machinery Manufacturing Company Private Limited," sought voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The Board of Directors decided to close down the company due to non-availability of business prospects and long-term financial resources, making it financially unviable to continue operations.

2. Compliance with Procedural Requirements:
The procedural requirements for voluntary liquidation were meticulously followed. The company passed a special resolution in its Extraordinary General Meeting (EOGM) on 8th December 2017, confirming the Board's decision and appointing Mr. Umesh Ved as the Liquidator. The necessary declaration was made by the Directors, accompanied by audited financial statements and business records for the previous two years. The declaration and other documents were filed with the Registrar of Companies, Gujarat.

3. Appointment and Duties of the Liquidator:
Mr. Umesh Ved, a Practicing Company Secretary and Insolvency Professional, was appointed as the Liquidator. He performed his duties diligently, including making a public announcement of the commencement of liquidation, opening a bank account for realization and payment to members, and submitting a preliminary report to the Corporate Person. He also obtained a "No Objection Certificate" from statutory authorities and distributed the corpus of Rs. 1,83,75,000/- among the members of the company.

4. Communication to Statutory Authorities:
The liquidation process was communicated to the Registrar of Companies, Gujarat, and the Insolvency and Bankruptcy Board of India (IBBI) through appropriate forms (MGT-14 and GNL-2). The Liquidator also informed the Income Tax Department and obtained necessary certificates from other statutory authorities, including the surrender of the company's registration certificates for Central Excise, Service Tax, and VAT.

5. Absence of Objections:
No objections were received from shareholders, secured or unsecured creditors, or the public. The public announcement was made on the IBBI website, and no adverse comments were received. The Central Government did not make any representation against the petition despite being given proper notice and sufficient opportunities.

Conclusion:
The Tribunal, after examining the merits of the petition and ensuring compliance with Section 59 of the Insolvency and Bankruptcy Code, 2016, allowed the petition. The company, "Max Machinery Manufacturing Company Private Limited," was ordered to be dissolved with effect from 29th May 2019. The Liquidator was directed to communicate the order to the Registrar of Companies, Gujarat, IBBI, and other concerned statutory authorities within fourteen days. The Company Petition was allowed and disposed of accordingly.

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