2021 (7) TMI 979 - Tri - Insolvency and Bankruptcy

Successful Voluntary Liquidation of Company under Insolvency & Bankruptcy Code

In Re: Changyou. Com India Private Limited

In Re: Changyou. Com India Private Limited - TMI Issues:- Company Petition for dissolution under Section 59(7) of the Insolvency and Bankruptcy Code, 2016- Voluntary liquidation process of the Corporate Person- Compliance with legal formalities and procedures for liquidation- Approval of Special Resolution for liquidation and appointment of Liquidator- Declaration of solvency and absence of debts- Notification to relevant authorities and stakeholders- Distribution of assets and liabilities during liquidation process- Filing of final reports and compliance with regulations- Dissolution of the Corporate PersonAnalysis:1. The Company Petition was filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 by a Corporate Person, seeking dissolution through voluntary liquidation. The Corporate Person completed all necessary formalities and procedures in compliance with the law before filing the petition for dissolution.2. The Corporate Person, incorporated on 11.03.2011, decided to liquidate voluntarily by a resolution dated 01.06.2018. The Board of Directors confirmed that the company had no debts and was not liquidated to defraud anyone, fulfilling the requirements under Section 59(3)(a) of the Code.3. The members passed a Special Resolution on 11.06.2018 to liquidate the company and appointed a Liquidator. The Liquidator was approved with a remuneration, and the necessary consents from creditors were obtained as per the Code's provisions.4. Declarations of solvency were made by the Directors, ensuring that the liquidation was not intended to defraud any party. Notifications were sent to relevant authorities, including the Registrar of Companies, IBBI, and the Income-tax Department, as required by law.5. The Liquidator made public announcements regarding the liquidation process, inviting stakeholders to submit claims. The Liquidator also opened and closed a bank account for the liquidation process, ensuring proper utilization of funds and distribution to shareholders.6. Reports were submitted to IBBI, including audited accounts and statements in compliance with regulations. The liquidation process was completed, with assets distributed to shareholders and liabilities settled appropriately.7. The final report was filed on 05.11.2020, confirming the completion of the liquidation process. The Tribunal, after reviewing the petition and all relevant documents, dissolved the Corporate Person, directing the Liquidator to file the order with the concerned authorities within the specified timeline for compliance with the Code.8. The Company Petition for dissolution through voluntary liquidation was allowed, concluding the legal proceedings and formalities related to the liquidation and dissolution of the Corporate Person.