2021 (5) TMI 610 - Tri - Insolvency and Bankruptcy

Dissolution of the Corporate Debtor - Section 54(1) of the Insolvency Bankruptcy Code, 2016 read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process Regulations), 2016 - HELD THAT - From perusal of the final report and the Compliance Certificate filed in Form-H by the Applicant, it is seen that the Corporate Debtor has been completely liquidated and in the circumstances as averred and as prayed for by the Applicant that an order for dissolution is required to be passed by this Tribunal under Section 54 of the IBC, 2016. The dissolution of the Corporate Debtor viz., M/s. Business Jets (India) Private Limited is ordered - application allowed.

Summary

Issues: Application for dissolution of Corporate Debtor under Section 54(1) of IBC, 2016

Analysis:
1. The Liquidator filed an Application seeking dissolution of the Corporate Debtor, M/s. Business Jets (India) Private Limited, under Section 54(1) of the Insolvency & Bankruptcy Code, 2016 (IBC, 2016) read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process Regulations), 2016.

2. The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor was initiated earlier under Section 9 of IBC, 2016. The Interim Resolution Professional (IRP) received claims from various parties, including an Operational Creditor who was later found to be a 'Related Party' and disqualified from being a member of the Committee of Creditors (CoC).

3. Subsequently, the CoC decided to liquidate the company as it had no tangible assets but only liabilities. The Tribunal, under Section 33(1)(a) of IBC, 2016, ordered the liquidation of the Corporate Debtor and appointed the Applicant as the Liquidator.

4. The Liquidator, after receiving claims and settling statutory liabilities, found minimal assets with the Corporate Debtor, including bank balances, IT refunds, and trade receivables. The Liquidator distributed the available funds as per Sections 52 & 53 of IBC, 2016.

5. The Liquidator submitted a detailed final report along with a Compliance Certificate in Form-H, indicating full settlement of liabilities and distribution of funds. Despite no activity or assets left, the Liquidator did not file any application under specific sections of IBC, 2016.

6. The Applicant requested the Tribunal for the dissolution of the Corporate Debtor as per Section 54 of IBC, 2016, since all assets were liquidated. After reviewing the Application, final report, and Compliance Certificate, the Tribunal ordered the dissolution of M/s. Business Jets (India) Private Limited, directing the Liquidator to inform the concerned authorities accordingly within seven days.