2021 (8) TMI 946 - Tri - Insolvency and Bankruptcy

Seeking dissolution of the Corporate Debtor - Section 54 of the Insolvency and Bankruptcy Code, 2016 (the Code) r/w Regulation 45 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 - HELD THAT - It appears that the affairs of the Corporate Debtor have been standstill since FY 2016-17. The liquidation proceeds have also been realised and distributed to the stakeholders. It is satisfying from the documents on record that the dissolution is not with intent to defraud any person. The liquidation process has been duly completed as per the provisions of the Code without success. From the facts narrated and the law on the subject it would be just and equitable to dissolve the Corporate Debtor. No party is going to be adversely affected or prejudiced thereby. In view of the above the Corporate Debtor deserves to be dissolved. Application allowed.

Summary

Issues involved:
Application for dissolution of Corporate Debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:

1. Background and Liquidation Process:
- An Application for Corporate Insolvency Resolution Process (CIRP) was admitted, and a Resolution Professional (RP) was appointed.
- RP subsequently filed for liquidation, and an amendment was allowed to appoint a new Liquidator.
- Liquidator submitted progress reports, asset sale report, audited accounts, and final report.
- Liquidation estate comprised only of Land & Building; other assets were absent.
- Liquidator conducted public announcements, verified claims, and filed necessary reports.

2. Realization of Liquidation Proceeds and Distribution:
- Property sold in an online auction, realizing a sum of ?94,00,000.
- Additional funds transferred to the Liquidation account, totaling ?94,02,590.
- Liquidator retained funds for future expenses and distributed the balance to stakeholders as per the Code.

3. Compliance and Dissolution Order:
- Liquidator complied with all procedural requirements under the Code and Regulations.
- Section 54 of the Code allows for dissolution of a Corporate Debtor upon complete liquidation of assets.
- Final report submitted by the Liquidator showed proper conduct of liquidation and realization of assets.
- Tribunal found no intent to defraud and confirmed completion of the liquidation process.
- Corporate Debtor was dissolved with immediate effect, and the Liquidator was discharged.

This judgment highlights the meticulous process followed in the liquidation of a Corporate Debtor, including the submission of various reports, realization of assets, and distribution to stakeholders. The Tribunal's decision to dissolve the Corporate Debtor was based on the completion of the liquidation process in accordance with the provisions of the Insolvency and Bankruptcy Code, ensuring fairness and compliance with legal requirements.