Company's voluntary liquidation approved under Insolvency and Bankruptcy Code

The company's application for dissolution under section 59 of the Insolvency and Bankruptcy Code, 2016, along with IBBI Regulations, was approved. The company voluntarily liquidated due to operational suspension and poor business prospects. Necessary procedures, including appointing an Insolvency Professional as Voluntary Liquidator, notifying authorities, and complying with regulatory requirements, were completed. After confirming compliance with relevant provisions, the company was dissolved immediately. The order required filing a copy with the ROC within the statutory period. No objections were raised by the ROC or IBBI, leading to the successful dissolution of the company.

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Issues:
Application for dissolution under section 59 of the Insolvency and Bankruptcy Code, 2016 read with IBBI Regulations by the Voluntary Liquidator of M/s. AAR ESS Agro Commodities Private Limited.

Analysis:
The application was filed seeking dissolution of the company under section 59 of the Insolvency and Bankruptcy Code, 2016, along with the IBBI Regulations. The company, a public limited company incorporated under the Companies Act, 1956, decided to voluntarily liquidate due to the suspension of trading operations and bleak business prospects. An Extraordinary General Meeting was held to approve the voluntary liquidation, and an Insolvency Professional was appointed as the Voluntary Liquidator. The necessary intimation was provided to the Income Tax Authorities, and the company cleared its dues as per the assessment order. The Voluntary Liquidator fulfilled the regulatory requirements by publishing notifications in newspapers, opening a dedicated bank account, and submitting reports to the relevant authorities.

The ROC filed a status report after being directed by the Bench, and no objections were raised by the ROC or IBBI post the issuance of notices. The applicant confirmed compliance with Section 59 and other relevant provisions, including submission of Form GNL-2 to the ROC and intimation to IBBI after asset realization, distribution, and account closure. Satisfied with the voluntary liquidator's compliance and application, the company was dissolved with immediate effect by the order. The order mandated filing a copy with the ROC within the statutory period as per applicable provisions, thereby allowing the petition in the stated terms.

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