2022 (1) TMI 618 - Tri - Insolvency and Bankruptcy

Tribunal Orders Dissolution of Corporate Debtor under Insolvency Code

The Tribunal ordered the dissolution of the Corporate Debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016, relieving the RP/Liquidator ... Dissolution of the Corporate Debtor - Section 54 of the Insolvency and Bankruptcy Code, 2016 (1 & B Code'), r/w Regulations 44 and 45 of IBBI (Liquidation Process) Regulations, 2016 - HELD THAT:- The Applicant states that no distribution has been made to the stakeholders in the absence of assets available for sale. Further, no unsold property has been distributed to any stakeholder of the CD - the Applicant further states that on 12.05.2020, the applicant has submitted the Second Progress report of liquidation process of the CD, along with the asset memorandum of CD, copy of preliminary report and receipt of submission of preliminary report, copy of public announcement made in the newspapers and copy of progress report. In compliance with the applicable provisions of the Code, final report under Regulation 45 of the IBBI (Liquidation Process) Regulation, 2016 has been annexed along with the present application. It is submitted that no litigations are pending with or threatened against the CD and no other material disputes are lying against the company. All the assets of the CD have been completely liquidated, this Authority in exercise of the powers conferred under Sub-section (2) of Section 54 of the I & B Code, 2016, hereby orders the dissolution of the Corporate Debtor - Application allowed. Issues:1. Application for dissolution of the Corporate Debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016.2. Liquidation process and claims received from Unsecured Financial Creditors.3. Closure of bank accounts and lack of remaining assets of the Corporate Debtor.4. Compliance with regulations and submission of progress reports.5. Dissolution of the Corporate Debtor and relief of the RP/Liquidator.Analysis:1. The judgment pertains to an application filed by the Liquidator under Section 54 of the Insolvency and Bankruptcy Code, 2016, along with Regulations 44 and 45 of IBBI (Liquidation Process) Regulations, 2016, seeking the dissolution of the Corporate Debtor.2. The Liquidator highlighted that the original petition for initiation of Corporate Insolvency Resolution Process (CIRP) was admitted by the Tribunal, leading to the appointment of the Interim Resolution Professional (IRP) and subsequently the Resolution Professional (RP). Claims were received only from Unsecured Financial Creditors, and the total admitted claims were specified.3. Following the order of liquidation, a liquidation account was established, and all bank accounts of the Corporate Debtor were closed. It was noted that the Corporate Debtor had no remaining assets or funds in its bank accounts, had ceased operations for over six years, and lacked any future business prospects.4. The Liquidator ensured compliance by submitting progress reports, including the Second Progress report, asset memorandum, preliminary report, public announcements, and a final report as required under the IBBI (Liquidation Process) Regulations, 2016. The absence of pending litigations or disputes against the Corporate Debtor was also confirmed.5. The Tribunal, exercising its powers under Section 54 of the Insolvency and Bankruptcy Code, 2016, ordered the dissolution of the Corporate Debtor, relieving the RP/Liquidator from their duties. The directive included forwarding a copy of the order to the Registrar of Companies within seven days. Consequently, the application was disposed of, and parties were served with a copy of the order for compliance.