2019 (8) TMI 785 - Tri - Insolvency and Bankruptcy

Dissolution of the Corporate Debtor - fullest extent of the assets of the Corporate Debtor satisfied and there being no further assets to be utilized for recovery of dues of the Creditors/Stakeholders - HELD THAT - In view of the details provided in the application under consideration and the record placed on file, this Adjudicating Authority in exercise of the powers conferred under Sub-Section (2) of Section 54 of the Code, hereby, orders the dissolution of the Corporate Debtor viz. New Tech fittings Private Limited from the date of this order and the Corporate Debtor stands dissolved. Since bank account in the name of New Tech Fittings Pvt. Ltd., in Liquidation bearing No. 0960002105018806 opened with Punjab National Bank, Ahmedabad, Ashram Road Branch has balance of ₹ 17,637.12, the Liquidator is hereby directed to transfer the said amount of ₹ 17,637.12 in the Public account of India in Reserve Bank of India under Section 555(2) of the Companies Act, 1956. Liquidator stands relieved.

Summary

Issues Involved:
- Application for dissolution of Corporate Debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016.
- Liquidation process and distribution of assets to creditors.
- Transfer of remaining funds to Public account of India.
- Relief and directions for the Liquidator.

Analysis:
1. Application for Dissolution: The application under consideration, IA 48 of 2019 in CP (IB) 23/2017, was filed by the Liquidator of the Corporate Debtor seeking orders for the dissolution of the Corporate Debtor, M/s. New Tech Fittings Private Limited, under Section 54 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority reviewed the application, along with the records and details provided, and exercised its powers under Sub-Section (2) of Section 54 to order the dissolution of the Corporate Debtor from the date of the order, effectively dissolving the company.

2. Liquidation Process and Asset Distribution: Following the initiation of the Corporate Insolvency Resolution Process and subsequent liquidation proceedings, the Liquidator took various steps as part of the liquidation process. These steps included opening a bank account, seeking possession of assets, conducting e-auction proceedings, distributing proceeds from asset sales to creditors as per the priority laid down in Section 53 of the Code, and submitting necessary reports to the authorities. Notably, the Liquidator confirmed the satisfaction of creditors' claims to the fullest extent and the absence of further assets for recovery, leading to the application for dissolution.

3. Transfer of Remaining Funds: With a bank account still holding a balance of &8377; 17,637.12, the Adjudicating Authority directed the Liquidator to transfer this amount to the Public account of India in the Reserve Bank of India under Section 555(2) of the Companies Act, 1956. This step ensures the proper handling of remaining funds in compliance with regulatory requirements.

4. Relief and Directions for the Liquidator: As a final step, the Liquidator was relieved from their duties following the dissolution of the Corporate Debtor. The Authority directed the Liquidator and Registry to send a copy of the dissolution order to the Registrar of Companies, the Insolvency and Bankruptcy Board of India, and the Liquidator within a specified timeframe. This comprehensive approach ensures the proper closure of the liquidation process and adherence to legal formalities.

In conclusion, the judgment by the National Company Law Tribunal, Ahmedabad Bench, addressed the application for dissolution of the Corporate Debtor, highlighting the completion of the liquidation process, distribution of assets to creditors, transfer of remaining funds, and relief for the Liquidator, thereby concluding the matter effectively and in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.