Corporate dissolution approved with filing requirements

The Tribunal approved the dissolution of the Corporate Person and directed the Liquidator to file a copy of the order with the Registrar of Companies and IBBI within fourteen days. The application for voluntary liquidation was allowed, and the dissolution of the company, M/s. Living Springs Private Limited, was approved on November 10, 2020.

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Issues:
Application for voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The application was filed for the voluntary liquidation of a company, M/s. Living Springs Private Limited, through its Liquidator, Mr. P. D. Vincent, under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company's Board of Directors decided to liquidate due to unprofitable business operations and no future prospects, following all legal formalities. The Directors made a declaration, and the audited financial statements confirmed no debts or creditors, eliminating the need for creditor approval. A special resolution was passed by the members in an Extraordinary General Meeting to appoint Mr. P. D. Vincent as the Liquidator.

The Liquidator initiated the liquidation process by making a public announcement, submitting required documents to regulatory authorities, and opening a bank account for asset realization and payments. Necessary intimation was provided to the Income Tax and Goods and Service Tax Authorities, obtaining No Objection Certificates. After settling all dues to creditors and members, the liquidation account was closed, and the process was completed on 03.09.2020. The final report detailing realizations and payments was filed with the Registrar of Companies and IBBI, complying with relevant regulations.

Upon review, the Tribunal observed that the company's affairs were wound up, assets liquidated, and all necessary steps for dissolution were completed. Consequently, the Tribunal approved the dissolution of the Corporate Person and directed the Liquidator to file a copy of the order with the Registrar of Companies and IBBI within fourteen days, in accordance with Section 59 (7 to 9) of the Insolvency and Bankruptcy Code. As a result, the application for voluntary liquidation was allowed, and the dissolution of the company was approved on the 10th day of November, 2020.

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