2019 (10) TMI 374 - Tri - Insolvency and Bankruptcy

Maintainability of petition - prayer for dissolution of petitioner company - voluntary liquidation of company - HELD THAT - All requirements under Section 59 of the Insolvency Bankruptcy Code, 2016 and the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 have been complied with and consequently, the Liquidator has moved the present application under Section 59(7) of the Code. The application is allowed by dissolving the Petitioner Company, M/s. BHOOVAHANA TECHNOLOGIES PRIVATE LIMITED with effect from 28.06.2019.

Summary

Issues:
Voluntary liquidation process under Section 59 of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The judgment pertains to a voluntary liquidation petition filed by the Liquidator of a company, "BHOOVAHANA TECHNOLOGIES PRIVATE LIMITED," under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company, incorporated in 2006, decided to initiate voluntary liquidation due to the absence of business activities for several years. The Board of Directors approved the voluntary liquidation proposal in March 2018, followed by a special resolution by shareholders in April 2018. The Liquidator was appointed, and necessary declarations and notifications were made to regulatory authorities, including the Registrar of Companies, Income Tax Department, and Reserve Bank of India.

The Liquidator undertook various steps in the liquidation process, such as publishing public announcements, notifying creditors and stakeholders, preparing a list of stakeholders, and submitting a preliminary report. The company's assets were minimal, with the majority of proceeds coming from a rental deposit. The Liquidator confirmed that no claims were received during the liquidation process. The final accounts were prepared, audited, and submitted to regulatory bodies, ensuring compliance with the Code and regulations.

After verifying the compliance and submissions by the Liquidator, the Adjudicating Authority allowed the voluntary liquidation petition and ordered the dissolution of the company, effective from a specified date. The Liquidator was directed to inform relevant authorities about the dissolution within a stipulated timeframe. The order emphasized that it pertained only to the voluntary liquidation process and did not prevent authorities from taking action for any violations committed by the company or its directors before or during the liquidation process. The judgment exemplifies a comprehensive and meticulous adherence to the legal requirements governing voluntary liquidation under the Insolvency and Bankruptcy Code, ensuring a systematic and lawful conclusion to the company's liquidation process.