2022 (4) TMI 77 - Tri - Insolvency and Bankruptcy

Dissolution of the Corporate Debtor - section 54 of the Insolvency and Bankruptcy Code, 2016 (Code) read with regulation 45 of the Liquidation Process Regulations - HELD THAT - On perusing the documents annexed to the application, it appears that affairs of the Corporate Debtor have been completely wound up and its assets have been completely liquidated. The bank account has also been closed and no liabilities of the stakeholders have been left unsatisfied. There is no impediment to the Corporate Debtor being dissolved, and it is ordered accordingly. Application disposed off.

Summary

Issues:
1. Application for dissolution of a Corporate Debtor under the Insolvency and Bankruptcy Code, 2016.
2. Sale of assets of the Corporate Debtor and sister concern.
3. Dispute regarding the successful bidder for the assets.
4. Compliance with Liquidation Process Regulations.
5. Winding up of affairs and distribution of assets to stakeholders.
6. Order for dissolution of the Corporate Debtor.

Analysis:
1. The judgment pertains to an application filed under section 54 of the Insolvency and Bankruptcy Code, 2016, seeking the dissolution of a Corporate Debtor, Maa Tara Ferrotech Private Limited. The Corporate Debtor had previously undergone the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation due to the inability to resolve its stressed assets through a resolution plan.

2. The Liquidator of the Corporate Debtor took steps to form a Liquidation Estate, including valuation of assets not covered in the CIRP, and published a Sale Notice inviting bids for the assets. The Liquidator declared Mr. Pawan Kumar Agarwal as the successful bidder, leading to a dispute with Vishnu Engineering Corporation, which filed an application challenging the decision but later withdrew it.

3. Further compliance with the Liquidation Process Regulations was demonstrated by the Liquidator through the opening of a new bank account for the Corporate Debtor, submission of stakeholder claims, filing of reports, and preparation of a compliance certificate. The Liquidator ensured the realization and distribution of assets to stakeholders in accordance with the statutory provisions.

4. The judgment confirms that the affairs of the Corporate Debtor have been completely wound up, assets liquidated, and liabilities settled, leading to the conclusion that there is no impediment to the dissolution of the Corporate Debtor. The Tribunal ordered the dissolution and directed the Liquidator to inform the Registrar of Companies, Jharkhand, within a specified timeframe.

5. The judgment also directed the Registry to provide copies of the order to all relevant parties and their legal representatives for information and necessary action. Additionally, it allowed for the issuance of a certified copy of the order upon completion of formalities, concluding by consigning the file to the record.