2021 (5) TMI 105 - Tri - Insolvency and Bankruptcy

Tribunal orders dissolution of Lipika Collection Pvt Ltd under Insolvency & Bankruptcy Code

The Tribunal ordered the dissolution of Lipika Collection Private Limited under Section 59(8) of the Insolvency and Bankruptcy Code, 2016, following a ... Seeking approval of this Tribunal to liquidate the Company - HELD THAT:- The requirement of the provisions of Section 59, read with the relevant rules, have been satisfied by the Liquidator. Since there is no liability on the Company and no fraud has been found against it either by the Auditors in their report or by the Liquidator, particularly, in the absence of any response from the Registrar of Companies, West Bengal and the Official Liquidator, the dissolution of the Company Lipika Collection Private Limited is ordered - application allowed. Issues:Liquidation of Lipika Collection Private Limited under the Insolvency and Bankruptcy Code, 2016.Analysis:The application for liquidation of Lipika Collection Private Limited was filed by the Liquidator seeking approval from the Tribunal as per the provisions of the Insolvency and Bankruptcy Code, 2016. The company was unable to continue its business activities as per its Memorandum and Articles of Association, leading to the decision to voluntarily liquidate the company. The Liquidator provided details of the company's incorporation, share capital, and financial position to support the liquidation application.The Board of Directors and members of the company had approved the voluntary winding up of the company, appointing the Liquidator to oversee the process. Necessary documents, such as financial statements, shareholder details, and board resolutions, were submitted along with the application. The Liquidator also complied with the requirements of the Liquidation Regulations, 2017, including making public announcements and informing relevant authorities about the initiation of the liquidation process.The Tribunal reviewed all the documents presented by the Liquidator, including declarations by the directors, audited financial statements, and the final report of accounts. It was confirmed that the company had no outstanding debts, loans, or liabilities, and no fraud was reported during the audit period. Despite issuing notices to regulatory authorities, no objections were raised, indicating no liabilities or fraud against the company.After thorough examination of the documents and compliance with legal requirements, the Tribunal ordered the dissolution of Lipika Collection Private Limited under Section 59(8) of the Insolvency and Bankruptcy Code, 2016. The Registry was directed to communicate the order to relevant authorities for further action, and the case was disposed of accordingly. Certified copies of the order were to be issued to concerned parties upon request and completion of formalities.