National Company Law Tribunal Kochi: Winding Up of Amaravathi Eye Care Hospital

The National Company Law Tribunal, Kochi Bench addressed issues concerning the winding up of M/s. Amaravathi Eye Care Hospital Private Limited. The Tribunal appointed a Company Liquidator, directed submission of books of accounts and statement of affairs, constituted a Winding Up Committee, granted additional time for report submission, and fixed the fee for the Liquidator. The decision aimed to streamline the liquidation process and ensure compliance with legal provisions under the Companies Act, 2013.

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Issues Involved:
Appointment of Company Liquidator, Submission of Books of Accounts, Statement of Affairs, Constitution of Winding Up Committee, Submission of Report, Fixing of Fee

Appointment of Company Liquidator:
The application filed under Rule 11 of the NCLT Rules sought the appointment of a Company Liquidator for M/s. Amaravathi Eye Care Hospital Private Limited. The Tribunal had previously allowed the winding up of the company and appointed a Liquidator. However, it was noted that the Liquidator was initially appointed as a Provisional Liquidator, and the correct forms (WIN 11,12,13) for the appointment as a Company Liquidator needed to be issued to complete the duties assigned by the Tribunal.

Submission of Books of Accounts and Statement of Affairs:
The directors and officers of the company were directed to submit the books of accounts completed and audited up to the date of the order. However, due to lack of cooperation, the Liquidator could not submit the audited books of account. The Liquidator took steps to collect necessary information but faced challenges in obtaining details of assets, bank accounts, and cash balances. The Federal Bank was identified as the only fully secured creditor of the company.

Constitution of Winding Up Committee:
The Tribunal decided to constitute a Winding Up Committee to assist and monitor the progress of liquidation proceedings. The committee would comprise the Company Liquidator, an official Liquidator, a nominee of secured creditors, and a professional nominated by the Tribunal. The committee's role included tasks such as taking over assets, reviewing audit reports, and finalizing lists of creditors.

Submission of Report and Fixing of Fee:
The Liquidator had filed a provisional report and sought additional time to complete the winding up process. The Tribunal granted 30 days for the submission of the winding up report. Additionally, the fee of the Provisional Liquidator and Company Liquidator was fixed at Rs. 50,000 and Rs. 75,000 respectively, to be paid by the petitioner upon completion of duties and submission of the winding up report.

This judgment by the National Company Law Tribunal, Kochi Bench addressed various issues related to the winding up of M/s. Amaravathi Eye Care Hospital Private Limited. The Tribunal appointed a Company Liquidator, directed the submission of books of accounts and statement of affairs, constituted a Winding Up Committee, provided additional time for report submission, and fixed the fee for the Liquidator. The decision aimed to streamline the liquidation process and ensure compliance with relevant legal provisions under the Companies Act, 2013.

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