REJECTION OF DISSOLUTION OF CORPORATE DEBTOR

[Mr. M. GOVINDARAJAN]

In re MR. UMESH HARJIVANDAS VED LIQUIDATOR OF NEUROMED IMAGING CENTRE PRIVATE LIMITED, MAHAVEER TRANSPORT VERSUS NEUROMED IMAGING CENTRE PRIVATE LIMITED - 2024 (8) TMI 668 - NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD (COURT - II), Mahaveer Transport Limited, Bellari filed an application under section 7 of the Insolvency and Bankruptcy Code, 2016 (‘Code’ for short) before the Adjudicating Authority. The same was admitted by the Adjudicating Authority on 27.10.2019 and appointed one interim resolution professional. He caused a public announcement for the collection of claims from the creditors of the corporate debtor. He constituted a Committee of Creditor (‘CoC’ for short). The CoC replaced the interim resolution professional with the applicant in this case, Umesh Harjivandas Ved.

The Resolution Professional took action inviting resolution plans from the e Resolution applicants. Since no resolution plan has bee received the CoC decided to go for in liquidation. As such the Resolution Professional filed an application before the Adjudicating Authority for liquidation of corporate debtor. The Adjudicating Authority allowed the application filed by the Resolution and ordered the corporate debtor to go in for liquidation on 07.09.2020. The applicant was appointed as liquidator.

The liquidator made a public announcement inviting the claims from the creditors of the corporate debtor. The liquidator constituted a Stakeholders’ Consultation Committee (‘SCC’ for short). The liquidator filed preliminary report and Asset Memorandum on 20.11.2020. In the liquidation process only one asset is to be sold by the liquidator. The liquidator also got extension from the Adjudicating Authority for completion of liquidation proceedings. He conducted three E-Auctions and finally on 17.09.2022 the successful bidder got the said property for the value of Rs. 47,91,600/-. The sale deed was executed between the successful bidder and the liquidator on 12.01.2023 and the liquidator issued a sale certificate for the same.

The liquidator appointed a valuer to value the value of liquidation. The valuer valued at Rs. 53,24,000/-.

The liquidator submitted the final report on 06.11.2023 which has been duly audited by the Chartered Accountants. The liquidator submitted the final report before the SCC and the same was submitted to the Registrar of Companies and the Insolvency and Bankruptcy Board of India. The liquidator filed Compliance Certificate in Form H on 10.11.2023. In the said form the liquidator intimate that the liquidation value is Rs. 53,24,000/- and sale of liquidation estate is Rs. 47,91,600/-.

The liquidator informed the income tax department about the dissolution of the corporate debtor. The Income Tax Department filed its claims in Form B with NIL amount. Therefore, there is no amount payable to the income tax department.

In the meeting of SCC held on 01.04.2023 the liquidator informed that there is only one secured creditor and 7 unsecured creditors. Since the amount is not sufficient to meet the claim of secured creditor, all amount except the liquidation cost, is distributed to the secured creditor. The liquidator also filed an affidavit before the Adjudicating Authority stating that there are no pending litigations, suits, or legal proceedings by or against the corporate debtor in any court, Tribunal or authority as on the date of affidavit i.e 11.03.2024.

The Adjudicating Authority considered the application for dissolution of the corporate debtor by the liquidator. The Adjudicating Authority observed that the liquidator has obtained a report from the Auditor by way of Independent Auditor’s Report wherein the draw down of receipts and payments are mentioned. By way of email, he has forwarded to a list of recipients for information and has in its report stated that the same has been forwarded for information. However, neither the email states that in view of the report he proposes to dissolve the entity and file before this authority this application, nor has he convened a meeting of the SCC to propose a dissolution under Sec 54 of IBC 2016.

Therefore, the Adjudicating Authority rejected the application for dissolution. The Adjudicating Authority reverted back with the directions to the liquidator to convene a meeting of SCC and place his proposal and submit a fresh application based on the advice of SCC.