2022 (3) TMI 277 - Tri - Insolvency and Bankruptcy

Seeking voluntary dissolution - section 59 of the Insolvency and Bankruptcy Code, 2016 (Code) read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 - HELD THAT - When the matter was first heard, this Bench had directed that notices be issued to the RoC. The ROC has filed their status report dated 04.02.2022 - Pursuant to the service of the notices to the ROC and IBBI, no objection has been raised by them. The applicant states that necessary compliances of Section 59 and other relevant provisions of the Insolvency and Bankruptcy Code, 2016 read with the regulations have been stated within time, more specifically submission of the Form GNL-2 to the ROC and the intimation to the IBBI vide email, after realisation and distribution of the assets to its members and closure of the Bank account - in view of the satisfaction accorded by the voluntary liquidator by way of the present application, the said company is hereby dissolved with effect from the date of the present order. Petition allowed.

Summary

Issues:
Application for dissolution under section 59 of the Insolvency and Bankruptcy Code, 2016 read with IBBI Regulations by the Voluntary Liquidator of M/s. AAR ESS Agro Commodities Private Limited.

Analysis:
The application was filed seeking dissolution of the company under section 59 of the Insolvency and Bankruptcy Code, 2016, along with the IBBI Regulations. The company, a public limited company incorporated under the Companies Act, 1956, decided to voluntarily liquidate due to the suspension of trading operations and bleak business prospects. An Extraordinary General Meeting was held to approve the voluntary liquidation, and an Insolvency Professional was appointed as the Voluntary Liquidator. The necessary intimation was provided to the Income Tax Authorities, and the company cleared its dues as per the assessment order. The Voluntary Liquidator fulfilled the regulatory requirements by publishing notifications in newspapers, opening a dedicated bank account, and submitting reports to the relevant authorities.

The ROC filed a status report after being directed by the Bench, and no objections were raised by the ROC or IBBI post the issuance of notices. The applicant confirmed compliance with Section 59 and other relevant provisions, including submission of Form GNL-2 to the ROC and intimation to IBBI after asset realization, distribution, and account closure. Satisfied with the voluntary liquidator's compliance and application, the company was dissolved with immediate effect by the order. The order mandated filing a copy with the ROC within the statutory period as per applicable provisions, thereby allowing the petition in the stated terms.