Dissolution of Company Granted in Voluntary Liquidation Under Insolvency and Bankruptcy Code

The Tribunal granted the order for dissolution of M/s. Good Earth Properties and Services P. Ltd. in voluntary liquidation under the Insolvency and Bankruptcy Code, 2016. The liquidator complied with all statutory provisions and regulations, including obtaining a declaration of solvency from directors, shareholder approval, public announcements, and a no objection certificate from the Income-tax Department. With no creditors, the company was dissolved on November 6, 2019, following the liquidation process.

---

---

Issues:
Voluntary liquidation of a corporate person under the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:

1. Compliance with Section 59 of the Insolvency and Bankruptcy Code, 2016:
- The liquidator filed an application for the voluntary liquidation of M/s. Good Earth Properties and Services P. Ltd. under section 59 of the Code.
- The Tribunal assessed whether the liquidator adhered to the provisions of section 59 of the Code and regulation 3 of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 before ordering the dissolution of the company.

2. Declaration of Solvency:
- Section 59(3)(a) of the Code mandates a declaration from the majority of directors verifying that the company has no debt or can pay its debts in full from asset proceeds.
- The directors of the company, Mr. Gunupati Venkateswara Prasad and Ms. Gunupati Anuradha, provided a declaration of solvency as required by the Code.

3. Approval for Voluntary Liquidation:
- Shareholders approved the voluntary liquidation at an extraordinary general meeting, appointing Ms. M. S. Mano Ranjani as the liquidator initially, later replaced by advocate Dr. Rajkumar Adukia.
- The Registrar of Companies was duly notified about the resolution for voluntary liquidation.

4. Compliance with Regulations:
- The liquidator fulfilled regulatory requirements by issuing public announcements in newspapers as per IBBI (Voluntary Liquidation Process) Regulations, 2017.
- The Income-tax Department issued a no objection certificate for the liquidation process.

5. Creditors and Dissolution:
- The company had no creditors at the commencement of liquidation.
- The liquidator completed the liquidation process in accordance with statutory provisions and regulations, leading to the dissolution of "Good Earth Properties and Services P. Ltd." effective from November 6, 2019.

6. Order for Dissolution:
- The Tribunal granted the order for dissolution based on the liquidator's compliance with the Code and regulations, directing the forwarding of the order to the relevant authority within 14 days.

This detailed analysis highlights the procedural steps, declarations, approvals, compliance with regulations, absence of creditors, and the final order for dissolution in the voluntary liquidation process of M/s. Good Earth Properties and Services P. Ltd. under the Insolvency and Bankruptcy Code, 2016.

---