2022 (6) TMI 1046 - Tri - Insolvency and Bankruptcy

Seeking dissolution of the Corporate Person through voluntary liquidation - Section 59 of the Insolvency Bankruptcy Code, 2016 - HELD THAT - On verification of the documents produced, it is noticed that the affairs of the Corporate Person have been completely wound up and its assets were liquidated following the relevant provisions in the IBBI (Voluntary Liquidation Process), 2017. Hence, the Corporate Person may be voluntarily liquidated so as to get it dissolved. This Tribunal approves the voluntary liquidation and dissolution of the Corporate Person and order that the Corporate Person shall stand dissolved from the date of this order - Petition allowed.

Summary

Issues:
Voluntary liquidation and dissolution of a corporate person under Section 59 of the Insolvency & Bankruptcy Code, 2016.

Detailed Analysis:

1. The Company Petition was filed under Section 59 of the Insolvency & Bankruptcy Code, 2016 for the voluntary liquidation and dissolution of the Corporate Person. The Corporate Person had completed all formalities and procedures for liquidation in compliance with the relevant rules and regulations and had filed the petition through the Liquidator.

2. The Corporate Person, engaged in designing, developing, manufacturing, and selling LED lighting products, decided to close down due to the lack of business prospects and financial resources. The Board of Directors passed a resolution for voluntary liquidation as the company was not financially viable to continue its operations.

3. The Directors made a declaration of solvency, and a special resolution was passed by the members of the Company to liquidate voluntarily. An Insolvency Professional was appointed as the Liquidator, and necessary documents were filed with the Registrar of Companies. The operational creditor provided a no-objection certificate for voluntary liquidation.

4. The Liquidator made a Public Announcement seeking claims from stakeholders, opened a bank account for liquidation purposes, and received claims from operational creditors. Payments were made to creditors as per regulations, and the company's assets, consisting mainly of TDS receivables and bank balances, were liquidated.

5. The Liquidator submitted a preliminary report and a final report with audited certificates on the liquidation to the Registrar of Companies and IBBI. Following the payment to creditors and members, the liquidator closed the liquidation account, winding up the affairs of the Corporate Person.

6. The Tribunal, after verifying the documents and hearing the Liquidator, found that the affairs of the Corporate Person had been completely wound up and its assets liquidated in accordance with the regulations. Consequently, the Tribunal approved the voluntary liquidation and dissolution of the Corporate Person, ordering its dissolution from the date of the order.

7. The Liquidator was directed to file a copy of the order with the Registrar of Companies and IBBI within fourteen days, as per the provisions of the Insolvency & Bankruptcy Code, 2016. The Company Petition for voluntary liquidation and dissolution was allowed by the Tribunal on the specified date.