Tribunal Orders Liquidation of Company after Insolvency Proceedings

The Tribunal admitted the Company Petition for Corporate Insolvency Resolution Process (CIRP), appointed an Interim Resolution Professional (IRP), and later a Resolution Professional (RP). The Committee of Creditors (CoC) decided to liquidate the company due to lack of operations/assets. The Liquidator was appointed, assets distributed, and claims settled in consultation with stakeholders. The Final Report was submitted, compliance certificate prepared, and the Tribunal ordered dissolution of the Corporate Debtor, confirming compliance with the Insolvency & Bankruptcy Code. Case CP No. 1584/IBC/NCLT/MB/MAH/2017 was closed.

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Issues Involved:
1. Admission of Corporate Insolvency Resolution Process (CIRP).
2. Formation and decisions of the Committee of Creditors (CoC).
3. Appointment and actions of the Interim Resolution Professional (IRP) and Resolution Professional (RP).
4. Liquidation process and appointment of Liquidator.
5. Distribution of assets and settlement of claims.
6. Finalization and closure of liquidation process.

Issue-wise Detailed Analysis:

1. Admission of Corporate Insolvency Resolution Process (CIRP):
The Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 seeking CIRP of the Corporate Debtor was admitted by the Tribunal on 23.02.2018. Mr. Sanjay Kumar Ruia was appointed as the Interim Resolution Professional (IRP).

2. Formation and Decisions of the Committee of Creditors (CoC):
The IRP published public announcements for claims submission and formed the CoC based on received claims. The CoC consisted solely of Operational Creditors as no Financial Creditor filed any claim. The CoC held its first meeting on 11.04.2018 and noted that the Corporate Debtor had no operations or assets, leading to the decision to liquidate the company.

3. Appointment and Actions of the Interim Resolution Professional (IRP) and Resolution Professional (RP):
The CoC requested the IRP to continue as the RP without additional fees, which he accepted. The RP filed an application for liquidation on behalf of the CoC, which was allowed on 29.08.2019. Due to a show cause notice from the Insolvency and Bankruptcy Board of India, Mr. Ruia was barred from acting as IRP/RP or Liquidator, prompting the CoC to appoint a new Liquidator.

4. Liquidation Process and Appointment of Liquidator:
The CoC unanimously appointed Mrs. Dipti Atul Mehta as the Liquidator on 30.08.2018. She took charge on 05.09.2018 and made public announcements. The liquidation status was updated with statutory authorities and banks. The Tribunal waived the appointment of a registered valuer as the Corporate Debtor had no assets to be valued.

5. Distribution of Assets and Settlement of Claims:
The Corporate Debtor received various tax refunds, which were deposited into a liquidation account. The Liquidator held consultation meetings with stakeholders to discuss the distribution of funds. The distribution was made in two tranches, and all professional fees were paid as per invoices. The Liquidator closed all bank accounts of the Corporate Debtor and transferred the funds to the liquidation account for distribution among creditors.

6. Finalization and Closure of Liquidation Process:
The Liquidator prepared the Final Report and submitted it to the Tribunal and relevant authorities. The compliance certificate under Regulation 45(3) was also prepared. The Tribunal examined the submissions and documents, confirming that the liquidation process was conducted per the Code and Regulations. The Tribunal ordered the dissolution of the Corporate Debtor, directed the Registry to forward a certified copy to the Registrar of Companies, and discharged the Liquidator.

Conclusion:
The Tribunal concluded that the liquidation process was completed as per the provisions of the Insolvency & Bankruptcy Code, 2016. The Corporate Debtor was dissolved with immediate effect, and the Liquidator was discharged. The case CP No. 1584/IBC/NCLT/MB/MAH/2017 was closed.

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