2022 (2) TMI 13 - Tri - Insolvency and Bankruptcy

Successful Voluntary Liquidation Process: Compliance with Insolvency Laws

In Re : OneSource India Private Limited

In Re : OneSource India Private Limited - TMI Issues:- Voluntary liquidation of a company under Section 59 of the Insolvency and Bankruptcy Code, 2016- Compliance with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017- Declaration of solvency by the Board of Directors- Appointment of a Liquidator and approval of liquidation process- Submission of audited financial statements and reports- Communication with regulatory authorities and stakeholders- Dissolution of the company and post-liquidation obligationsAnalysis:The Company Petition filed under Section 59 of the Insolvency and Bankruptcy Code, 2016, along with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, sought voluntary liquidation of the company. The petition detailed the incorporation details, registered office, objectives, and decision to wind up operations due to lack of future plans. The Board of Directors made a Declaration of Solvency, approved liquidation, appointed a Liquidator, and notified stakeholders through a special resolution.The Liquidator, appointed in an Extra Ordinary General Meeting, commenced the liquidation process and notified regulatory bodies like the Insolvency and Bankruptcy Board of India (IBBI) and the Registrar of Companies. Public announcements were made inviting claims from stakeholders, and necessary approvals and No Objection Certificates were obtained. The Liquidator submitted reports, settled creditor claims, and audited the company's accounts as per regulations.After fulfilling all requirements and completing the final distribution of assets, the Liquidator closed the bank account, prepared the final report, and communicated with IBBI and the Registrar of Companies. The Tribunal, after reviewing the submissions and reports, dissolved the company in compliance with Section 59(8) of the Insolvency & Bankruptcy Code, 2016. The Liquidator was directed to inform relevant authorities within a specified timeframe, and the application for voluntary liquidation was allowed and disposed of.The Tribunal noted the compliance with regulations, proper communication with authorities, and the completion of the liquidation process, leading to the dissolution of the company. The Liquidator's actions and submissions were found satisfactory, and the company was dissolved effectively.