2022 (3) TMI 411 - Tri - Insolvency and Bankruptcy

Seeking dissolution of Corporate Debtor - section 59 of the Insolvency and Bankruptcy Code, 2016 read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 - HELD THAT - There is no legal impediment in allowing the prayer of the applicant. The Prayer of Liquidator to dissolve the Company U/S 59 of the Code and the said company is hereby dissolved with effect from the date of the present order - Liquidator is directed to preserve a physical or electronic copy of the reports, registers, books of account referred to in Regulation 8 and 10 for at least eight years after the dissolution of the corporate person, either with himself or with an information utility.

Summary

Issues:
Application for dissolution of a company under section 59 of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The application was filed by the Voluntary Liquidator seeking dissolution of the Company under section 59 of the Insolvency and Bankruptcy Code, 2016, read with relevant regulations. The Company in question was a private limited company incorporated under the Companies Act, 1956, with specific objectives related to marketing products, export-import activities, and trade consultancy. The process of voluntary liquidation was initiated following the necessary legal requirements.

The petition included various statements regarding the compliance with legal procedures. These statements covered the Declaration of Solvency, resolution for voluntary liquidation, appointment of the Liquidator, holding of Extra-ordinary General Meeting, publication of notifications for stakeholders, intimation to tax authorities and RBI, conversion of bank account for liquidation purposes, submission of preliminary and final reports to the IBBI, and Registrar of Companies.

The Registrar of Companies submitted a status report confirming the filing of necessary documents by the Company, including Balance Sheet, Annual Return, Board Resolutions, Declaration of Solvency, and final reports. The report also confirmed the absence of any pending inquiries, inspections, complaints, or legal actions against the Company.

Based on the steps taken and the satisfaction of the voluntary liquidator, the Tribunal allowed the prayer for dissolution of the Company under section 59 of the Code. The Company was dissolved with immediate effect, and the Liquidator was directed to preserve essential documents for a specified period post-dissolution. The order required filing a copy with the Registrar of Companies within the statutory period and consigning the file to the Record Room.

This detailed analysis of the judgment highlights the procedural compliance, legal requirements, and the final decision of the Tribunal to dissolve the Company following the voluntary liquidation process as per the applicable laws and regulations.