2021 (6) TMI 441 - Tri - Insolvency and Bankruptcy

Voluntary Liquidation - Section 59 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The main intention for the Company management of the Corporate Person decided to wind up the Company, as they felt that the Company is not carrying out any business. The Liquidator has complied with all the conditions and procedural requirements as specified under Section 59 of IBC and Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 before initiating voluntary liquidation process of the Corporate Person and we find that the affairs of the Corporate Person have been completely wound up as there is no assets in the Company and as such had voluntarily liquidated itself so as to get dissolved. The Corporate Person, M/s. CONNATE INSURANCE SURVEYORS AND LOSS ASSESSORS PRIVATE LIMITED is hereby dissolved, with immediate effect - Application allowed.

Summary

Issues:
Voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The Company Petition was filed seeking voluntary liquidation by the Corporate Person, which was not conducting any business for a significant period. The Board of Directors decided to wind up the company voluntarily after making a Declaration of Solvency and passing a special resolution. The shareholders appointed an Insolvency Professional as Liquidator, and the liquidation commenced on the specified date. The necessary notifications were sent to regulatory bodies, and no claims were received from stakeholders or creditors. The Liquidator fulfilled all procedural requirements, including public announcements and holding meetings as per regulations.

The Liquidator complied with all statutory obligations, including notifying authorities, inviting claims, and distributing dues to shareholders. The audited accounts of liquidation were prepared, and a final report confirming the completion of the liquidation process was submitted. The Adjudicating Authority found that the Corporate Person had fully wound up its affairs, had no assets, and had voluntarily liquidated itself to dissolve. Consequently, the Company Petition was allowed, and the Corporate Person was dissolved with immediate effect.

The Adjudicating Authority issued directions for the dissolution of the Corporate Person, forwarding the order to regulatory bodies for appropriate action, and instructing the Liquidator to inform all relevant statutory authorities about the dissolution. The judgment highlighted the meticulous compliance with legal provisions and regulations throughout the voluntary liquidation process, leading to the dissolution of the Corporate Person in accordance with the Insolvency and Bankruptcy Code.