2022 (5) TMI 1253 - Tri - Insolvency and Bankruptcy

Seeking dissolution of Company - section 59(7) of the Insolvency and Bankruptcy Code, 2016 (Code) read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (IBBI Regulations) - HELD THAT - In view of the steps taken and the satisfaction accorded by the liquidator by way of the present application, there is no legal impediment in allowing the prayer of the applicant. Accordingly, as per the section 59(8) of the IBC, 2016, the Prayer of Liquidator to dissolve the Company U/s. 59(7) of IBC is allowed and the said company is hereby dissolved and is voluntarily wound up with effect from the date of the present order. Application allowed.

Summary

Issues:
Application for dissolution of a company under section 59(7) of the Insolvency and Bankruptcy Code, 2016 (Code) read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (IBBI Regulations).

Analysis:
The Liquidator filed an application seeking the dissolution of M/s. Shanti Tradeworld Private Limited under section 59(7) of the Insolvency and Bankruptcy Code, 2016, along with the relevant IBBI Regulations. The company, a private limited entity, had its registered office within the territorial jurisdiction of the Bench. The petition outlined various steps taken, including a resolution for voluntary liquidation, appointment of a liquidator, filing of necessary forms with the Registrar of Companies, submission of financial statements, publication of notifications for stakeholder claims, intimation to the Income Tax Authority, and opening of a liquidation account with a bank.

The Liquidator complied with the requirements of the IBBI Regulations, such as submitting a preliminary report, finalizing the liquidation process, closing the company's accounts, and submitting the final report to the IBBI and the Registrar of Companies. As no claims were received from creditors, and all necessary procedures were duly followed, the Tribunal found no legal impediment to granting the dissolution request. Pursuant to section 59(8) of the IBC, 2016, the Tribunal allowed the Liquidator's prayer for dissolution, officially winding up the company with immediate effect. The Liquidator was directed to retain copies of relevant documents for a minimum of eight years post-dissolution, either physically or electronically. Additionally, a copy of the dissolution order was required to be filed with the Registrar of Companies within fourteen days as per section 59(9) of the IBC, 2016.

In conclusion, the Tribunal granted the application for dissolution, acknowledging the fulfillment of all legal requirements and directing the Liquidator to adhere to post-dissolution document retention and filing obligations. The case was closed, and the file was to be archived in the Record Room.