2022 (2) TMI 16 - Tri - Insolvency and Bankruptcy

Seeking dissolution of Corporate Debtor - section 59 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - In view of the steps taken and the satisfaction accorded by the voluntary liquidator by way of the present application, there is no legal impediment in allowing the prayer of the applicant. Accordingly, the Prayer of Liquidator to dissolve the Company u/s 59 of the Code is allowed and the said company is hereby dissolved with effect from the date of the present order. Application allowed.

Summary

Issues:
- Application for dissolution of a company under section 59 of the Insolvency and Bankruptcy Code, 2016.
- Compliance with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017.
- Satisfaction of legal requirements for voluntary liquidation.
- Dissolution of the company and preservation of relevant documents.

Analysis:
1. Application for Dissolution: The application was filed by the Voluntary Liquidator seeking dissolution of the company under section 59 of the Insolvency and Bankruptcy Code, 2016, in accordance with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017.

2. Company Details: The company in question was a private limited company incorporated under the Companies Act, 1956. The authorized and paid-up share capital, along with the registered office address, were provided in the application.

3. Compliance with Regulations: Various steps were taken to comply with the IBBI Regulations, such as convening meetings, appointing a Voluntary Liquidator, publishing notifications for stakeholder claims, submitting declarations of solvency, informing regulatory authorities, and opening a bank account for liquidation purposes.

4. Liquidation Process: The liquidator submitted reports, including a preliminary report and a final report, to outline the capital structure, assets, liabilities, and the proposed plan for liquidation. Additionally, necessary forms were filed with the Registrar of Companies and the IBBI.

5. Debt and Compliance: It was noted that there were no outstanding debts and that the applicant had fulfilled the statutory requirements, including the deposit of unclaimed dividends and/or undistributed proceeds as per the regulations.

6. Dissolution Order: Based on the steps taken and the satisfaction of the voluntary liquidator, the Tribunal allowed the prayer for dissolution of the company under section 59 of the Code. The company was dissolved with immediate effect, and the liquidator was directed to preserve relevant documents for a specified period post-dissolution.

7. Record Filing: The order required a copy to be filed with the Registrar of Companies within the statutory period as per applicable provisions, and the file was to be consigned to the Record Room.

This detailed analysis highlights the comprehensive compliance with legal requirements and procedural steps leading to the dissolution of the company in question under the Insolvency and Bankruptcy Code.