2022 (3) TMI 1525 - Tri - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - Order for closure of the liquidation process in terms of Regulations 45(3)(a) of Insolvency and Bankruptcy Board of India, Regulations, 2016 (in-brevity IBBI) on compliance in Form-H - direction to Registrar of Companies for recording the status of the corporate debtor as active as well as recording the names of the new directors in place of the erstwhile directors - HELD THAT - Closure of the liquidation process in terms of Regulations 45(3)(a) of Insolvency and Bankruptcy Board of India, Regulations, 2016 (in-brevity IBBI) on compliance in Form-H of the directions passed by this Adjudicating Authority is allowed. Status of the corporate debtor as active as well as recording the names of the new directors in place of the erstwhile directors is allowed.

Summary

Issues Involved:
Interlocutory Application under section 60(5) of the Insolvency and Bankruptcy Code, 2016 for closure of liquidation process and recording new directors for a corporate debtor in liquidation.

Detailed Analysis:

Issue 1: Closure of Liquidation Process
The liquidator filed an Interlocutory Application seeking closure of the liquidation process for a corporate debtor in compliance with Regulations 45(3)(a) of the Insolvency and Bankruptcy Board of India, Regulations, 2016. The liquidator had taken various steps, including public announcements, stakeholder consultations, and e-auction processes, to facilitate the closure of the liquidation process. The application was allowed, and the bank account was directed to be closed upon closure of the process.

Issue 2: Recording New Directors
The liquidator also sought an order directing the Registrar of Companies to record the status of the corporate debtor as "active" and update the names of the new directors in place of the erstwhile directors. This request was made in conjunction with the closure of the liquidation process and was allowed by the Tribunal.

Key Points:
- The corporate debtor was admitted into Corporate Insolvency Resolution Plan and subsequently ordered for liquidation.
- The liquidator undertook various actions such as public announcements, stakeholder consultations, and e-auction processes to facilitate the closure of the liquidation process.
- The successful bidder in the e-auction process was Progressive Star Finance Pvt. Ltd., who deposited the earnest money deposit and bid amount as per the regulations.
- The liquidator complied with the liquidation process regulations by filing necessary reports and documents within the specified timelines.
- The Tribunal allowed the liquidator's application for closure of the liquidation process and recording of new directors, directing the closure of the bank account and updating the company's status with the Registrar of Companies.

This detailed analysis covers the key issues involved in the legal judgment, providing a comprehensive overview of the proceedings and outcomes related to the closure of the liquidation process and recording of new directors for the corporate debtor in liquidation.