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2021 (6) TMI 1017 - Tri - Insolvency and BankruptcyDissolution of Corporate Debtor - Section 54 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - Having satisfied to the fullest extent that no further assets to be utilized for recovery of dues of the Creditors/Stakeholders, no further proceedings would remain in the Liquidation Process of the Corporate Debtor, the Liquidator has approached this Adjudicating Authority for appropriate directions under Section 54 of the IB Code - this Adjudicating Authority in exercise of the powers conferred under Sub-Section (2) of Section 54 of the Code, hereby, orders the dissolution of the Corporate Debtor viz., M/s. Subhlaxmi Dyeing Printing Mills Private Limited from the date of this order and the Corporate Debtor stands dissolved. The Liquidator Mr. Kailash T Shah is discharged from his duties and responsibilities as the Liquidator of the Corporate Debtor - application allowed.
Issues: Dissolution of Corporate Debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016
Detailed Analysis: Issue 1: Background and Initiation of Liquidation Process The application, IA 358 of 2021 in CP (IB) 40 of 2019, was filed by the Liquidator of M/s. Subhlaxmi Dyeing & Printing Mills Private Limited, seeking dissolution of the Corporate Debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had been admitted to the insolvency process following an application by a Financial Creditor, which led to the appointment of an Interim Resolution Professional (IRP). Subsequently, a resolution was passed by the Committee of Creditors (CoC) recommending liquidation of the Corporate Debtor. The Adjudicating Authority directed the liquidation and appointed the same person as the Liquidator. Issue 2: Liquidation Process and Compliance The Liquidator complied with the necessary regulations, including giving public announcements inviting proof of claims from stakeholders and preparing the final report and compliance certificate as required under the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016. Upon assessment, it was determined that there were no unclaimed dividends or undistributed proceeds with the Corporate Debtor, and thus no amount needed to be transferred to the Corporate Liquidation Account. Issue 3: Dissolution of Corporate Debtor The Liquidator, having exhausted all avenues for recovery of dues and assets, approached the Adjudicating Authority for directions under Section 54 of the IB Code. The Adjudicating Authority, after considering the application and the record available, ordered the dissolution of the Corporate Debtor, M/s. Subhlaxmi Dyeing & Printing Mills Private Limited, effective from the date of the order. Consequently, the Liquidator was discharged from their duties and responsibilities, and directed to send a copy of the order to the Registrar of Companies (RoC) and the Insolvency and Bankruptcy Board of India. The application was allowed and disposed of accordingly. This detailed analysis outlines the process leading to the dissolution of the Corporate Debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016. It covers the background, liquidation process, compliance with regulations, and the ultimate decision to dissolve the Corporate Debtor based on the assessment by the Liquidator and the Adjudicating Authority.
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