Tribunal Orders Dissolution of Yosun India Pvt Ltd under Insolvency Code

The Tribunal ordered the dissolution of the company, Yosun India Private Limited, under Section 59(8) of the Insolvency and Bankruptcy Code, 2016, following the Liquidator's compliance with all requirements for voluntary liquidation. The Liquidator's submission of reports, payments to stakeholders, and receipt of a no-objection report led to the closure of the bank account and the preservation of relevant documents post-dissolution. The Registry was directed to inform the Registrar of Companies, marking the conclusion of the voluntary liquidation process for the company.

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Issues:
1. Application for Dissolution of a Company under Section 59(7) of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The judgment pertains to an application filed by the Liquidator seeking the dissolution of a company, Yosun India Private Limited, under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The Liquidator contended that the company had not been carrying on any business for the past five years and had only been incurring costs related to compliances and resources, earning meager income from investments. An Extraordinary General Meeting (EOGM) of the company was held, where shareholders passed a resolution for voluntary liquidation in accordance with the relevant regulations. The Liquidator was appointed, and all necessary procedures for voluntary liquidation were duly followed, including the submission of reports, opening a liquidation account, and receiving claims from creditors. The Liquidator submitted preliminary and final reports, showing realization and payment to stakeholders, with no outstanding income tax payments or objections from regulatory authorities.

The Liquidator complied with all requirements under the Insolvency and Bankruptcy Code and relevant regulations, including submitting reports, opening a liquidation account, and making payments to creditors and members. The Liquidator also received a no-objection report from the Registrar of Companies and finalized the list of stakeholders within the specified timeframe. After completing all necessary steps for voluntary liquidation, including submitting final reports and making payments, the Liquidator applied for the closure of the bank account. The Tribunal, after reviewing the compliance and reports submitted by the Liquidator, exercised its powers under Section 59(8) of the Insolvency and Bankruptcy Code, 2016, and ordered the dissolution of the company, Yosun India Private Limited, effective from the date of the order. The Liquidator was directed to preserve relevant documents for a specified period post-dissolution, and the Registry was instructed to forward a copy of the order to the Registrar of Companies for necessary action. The case was thereby disposed of, concluding the voluntary liquidation process for the company.

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