2021 (6) TMI 691 - Tri - Insolvency and Bankruptcy

Dissolution of corporate debtor - section 54 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The assets of the corporate debtor have been completely liquidated - In exercise of the powers conferred under section 54(2) of the I and B Code, this Adjudicating Authority hereby orders the dissolution of the corporate debtor, viz., M/s. H. Sakhiya Fashions P. Ltd. Thus, the corporate debtor shall stand dissolved from the date of this order, i. e., April 20, 2021. The liquidator, namely, Mr. Kailash T. Shah is discharged from his duties and responsibilities as the liquidator of the corporate debtor-company - application allowed.

Summary

Issues Involved:
Application for dissolution of corporate debtor under section 54 of the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:

1. Background and Admission of Main Company Petition:
The application, I. A. No. 219 of 2021, was filed by the liquidator of a corporate debtor under section 54 of the Insolvency and Bankruptcy Code, 2016. The main company petition, C. P. (IB) No. 106/NCLT/AHM/2019, was admitted by the Adjudicating Authority, appointing an interim resolution professional who later became the resolution professional of the corporate debtor.

2. Resolution for Liquidation:
Considering the lack of scope for revival and absence of assets or income, the Committee of Creditors (CoC) passed a resolution for the liquidation of the corporate debtor. The liquidator was appointed, and necessary procedures were followed as per the IBBI (Liquidation Process) Regulations, 2016.

3. Valuation and Dissolution Decision:
Upon valuation of the corporate debtor's assets, it was found that the stock was in a non-saleable condition, leading to a decision by the stakeholders' consultation committee (SCC) to proceed with the dissolution of the corporate debtor. The liquidator submitted reports, including progress reports and a final report, as required under the regulations.

4. Application for Dissolution and Order:
The liquidator filed the application for dissolution under section 54 of the I and B Code, along with necessary documents. The Adjudicating Authority, in exercise of its powers under section 54(2), ordered the dissolution of the corporate debtor, effective from the date of the order.

5. Discharge of Liquidator and Communication of Order:
Following the dissolution order, the liquidator was discharged from duties, and directions were given to communicate the order to relevant authorities. The liquidator was instructed to send copies of the order to statutory bodies within a specified timeframe.

6. Conclusion and Disposal of Petition:
The application for dissolution was allowed and disposed of, leading to the dissolution of the corporate debtor. No costs were awarded in the judgment, and the entire liquidation process was completed within the statutory timeline.

This detailed analysis covers the key aspects of the judgment, including the background, resolution for liquidation, valuation, decision for dissolution, application filing, order by the Adjudicating Authority, discharge of the liquidator, communication of the order, and the final disposal of the petition.