2021 (6) TMI 240 - Tri - Insolvency and Bankruptcy

Voluntary Liquidation - Dissolution of the Applicant Company - Section 59(7) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - It appears that the affairs of the Company have been completely wound up and the assets of the Applicant Company have been completely liquidated and as such the Applicant Company deserves to be dissolved. Accordingly, in exercise of the powers conferred under Section 59(8) of IBC, 2016, the dissolution of M/s. Jurong Engineering (India) Private Limited is ordered and the Applicant Company shall stand dissolved from the date of this order - application allowed.

Summary

Issues:
Company petition for voluntary liquidation under IBC, 2016 seeking dissolution of the company.

Analysis:
The judgment pertains to a Company Petition filed by the Liquidator for the voluntary liquidation of a company under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The Applicant Company, incorporated in 1997, aimed to conduct feasibility studies, engineering services, and related activities. The company had an authorized share capital of ?6,00,00,000 divided into equity shares. Due to a lack of significant business operations and the inability to devise a revival plan, the Board of Directors proposed voluntary liquidation. The Directors verified through an affidavit that the company had no debt, complying with statutory requirements.

In accordance with the IBC, 2016 and IBBI regulations, necessary steps were taken for voluntary liquidation. A Special Resolution was passed for liquidation and appointment of the Liquidator, along with the submission of audited financial statements and public announcements. The Liquidator fulfilled obligations such as issuing preliminary reports and handling claims from creditors and statutory authorities. The company's financial status, including bank balance and payments to stakeholders, was meticulously documented.

After settling all liabilities and completing the liquidation process, the Liquidator applied for closure of the Liquidation Account and submitted a Final Report as per regulations. Upon review of submissions and documents, the Tribunal found that the company's affairs were wound up, assets liquidated, and deemed it fit for dissolution. Hence, the Tribunal, exercising powers under Section 59(8) of IBC, 2016, ordered the dissolution of the company. The Registry and Liquidator were instructed to notify the Registrar of Companies and IBBI about the dissolution within a specified timeline.