2021 (6) TMI 689 - Tri - Insolvency and Bankruptcy

Dissolution of Corporate Debtor - section 54 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - Perusal of material on record goes to show that assets of the corporate debtor have been completely liquidated and proceeds have been distributed. Moreover, it is not the case that the proposed liquidation/dissolution of the company is going to affect adversely to its shareholders/ creditors or such dissolution is contrary to the provisions of law. The present petition deserves to be allowed in terms of its prayer clause - this Adjudicating Authority in exercise of the power conferred to it under section 54 of the Insolvency and Bankruptcy Code, 2016, orders and direct that the company M/s. Bhoomi Ginning Pressing P. Ltd. shall stand dissolved from the date of this order. Petition allowed.

Summary

Issues:
1. Application under section 54 of the Insolvency and Bankruptcy Code, 2016 for dissolution of the company "M/s. Bhoomi Ginning Pressing P. Ltd."

Analysis:
The application was filed by the liquidator of the company seeking directions for the dissolution of the corporate person under section 54 of the Insolvency and Bankruptcy Code, 2016. The applicant highlighted the various stages of the insolvency resolution process, starting from the admission of the corporate debtor into the corporate insolvency resolution process to the subsequent appointment of the resolution professional. The CoC's decision to liquidate the corporate debtor was also mentioned, leading to the order of liquidation passed by the Adjudicating Authority.

The applicant complied with the regulatory requirements by making a public announcement inviting claims from stakeholders and submitting reports periodically to the Authority. The applicant confirmed that the assets of the corporate debtor were completely liquidated, and the affairs of the company were wound up. The financial position of the corporate debtor was presented, showing a Nil balance in the liquidation account as of December 29, 2020.

After considering the submissions and examining the records, the Adjudicating Authority found that the liquidation process was completed within the statutory time period. No objections were raised by stakeholders during the consultation committee meeting regarding the dissolution of the corporate debtor. The Authority noted that the proposed dissolution would not adversely affect shareholders or creditors and was in accordance with the law.

Consequently, the Adjudicating Authority, in exercise of its power under section 54 of the Insolvency and Bankruptcy Code, 2016, ordered the dissolution of the company "M/s. Bhoomi Ginning Pressing P. Ltd." effective from the date of the order. The liquidator was directed to communicate this order to the relevant authorities within 14 days for necessary action and information dissemination.