Tribunal Orders Dissolution of Business Jets (India) Pvt. Ltd. under Insolvency Code

The Tribunal ordered the dissolution of the Corporate Debtor, M/s. Business Jets (India) Private Limited, under Section 54 of the Insolvency & Bankruptcy Code, 2016. This decision came after the Liquidator settled liabilities, distributed funds, and found minimal assets remaining with the company. Despite no further assets or activity, the Liquidator had not previously applied for dissolution. The Tribunal directed the Liquidator to inform relevant authorities of the dissolution within seven days.

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Issues: Application for dissolution of Corporate Debtor under Section 54(1) of IBC, 2016

Analysis:
1. The Liquidator filed an Application seeking dissolution of the Corporate Debtor, M/s. Business Jets (India) Private Limited, under Section 54(1) of the Insolvency & Bankruptcy Code, 2016 (IBC, 2016) read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process Regulations), 2016.

2. The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor was initiated earlier under Section 9 of IBC, 2016. The Interim Resolution Professional (IRP) received claims from various parties, including an Operational Creditor who was later found to be a 'Related Party' and disqualified from being a member of the Committee of Creditors (CoC).

3. Subsequently, the CoC decided to liquidate the company as it had no tangible assets but only liabilities. The Tribunal, under Section 33(1)(a) of IBC, 2016, ordered the liquidation of the Corporate Debtor and appointed the Applicant as the Liquidator.

4. The Liquidator, after receiving claims and settling statutory liabilities, found minimal assets with the Corporate Debtor, including bank balances, IT refunds, and trade receivables. The Liquidator distributed the available funds as per Sections 52 & 53 of IBC, 2016.

5. The Liquidator submitted a detailed final report along with a Compliance Certificate in Form-H, indicating full settlement of liabilities and distribution of funds. Despite no activity or assets left, the Liquidator did not file any application under specific sections of IBC, 2016.

6. The Applicant requested the Tribunal for the dissolution of the Corporate Debtor as per Section 54 of IBC, 2016, since all assets were liquidated. After reviewing the Application, final report, and Compliance Certificate, the Tribunal ordered the dissolution of M/s. Business Jets (India) Private Limited, directing the Liquidator to inform the concerned authorities accordingly within seven days.

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