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2022 (4) TMI 778 - Tri - Insolvency and BankruptcySeeking dissolution of the Applicant Company - Section 59 of the Insolvency Bankruptcy Code (described in short as IBC), 2016, read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 - HELD THAT - The Application is duly supported by the affidavit of the Liquidator. The Liquidator has distributed all the proceeds to the shareholders and has closed the Account. Further, in terms of Regulation 38 of the IBBI Regulations, the liquidator has submitted the Final Report to the IBBI ROC through email on 15.10.2021. In view of the satisfaction accorded by the Liquidator by way of the present Petition, duly accompanied by his affidavit, the said Applicant Company is hereby dissolved with effect from the date of the present order. Application allowed.
Issues:
1. Dissolution of the Applicant Company under Section 59 of the Insolvency & Bankruptcy Code. 2. Compliance with Voluntary Liquidation Process Regulations. 3. Financial status and winding up process of the Applicant Company. 4. Distribution of assets to stakeholders. 5. Submission of final reports and compliances to regulatory authorities. Analysis: Issue 1: Dissolution of the Applicant Company The petition filed sought the dissolution of the Applicant Company under Section 59 of the Insolvency & Bankruptcy Code, 2016, in accordance with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. Issue 2: Compliance with Voluntary Liquidation Process Regulations The Company had complied with the Voluntary Liquidation Process Regulations by following the prescribed procedures, including making necessary declarations, passing special resolutions, and submitting reports to the Registrar of Companies and the Insolvency and Bankruptcy Board of India. Issue 3: Financial status and winding up process The Company, having ceased operations and sold its assets, prepared financial statements to ensure solvency for debt repayment. Directors made required declarations, and stakeholders approved the voluntary liquidation. The Liquidator undertook public announcements, opened a liquidation bank account, and distributed proceeds to stakeholders. Issue 4: Distribution of assets to stakeholders The Liquidator confirmed the distribution of liquidated assets to stakeholders, including Preference Shareholders and Equity Shareholders, as per the provisions of Section 53 of the Insolvency & Bankruptcy Code, 2016. Funds were allocated for partial settlement towards Preference Shareholders, and the Company's affairs were completely wound up. Issue 5: Submission of final reports and compliances The Liquidator submitted the Final Statement of Accounts, Registers & Ledgers, and the Final Report as required by the IBBI (Voluntary Liquidation Process) Regulations, 2017. Additionally, compliance with Section 59 and other relevant provisions of the IBC, 2016, was completed within the stipulated timeframe. In conclusion, the Tribunal allowed the petition for dissolution of the Applicant Company, as all necessary compliances and procedures were duly followed, and the Company's affairs were successfully wound up. The Liquidator's affidavit and final reports supported the decision to dissolve the Company, marking the completion of the voluntary liquidation process.
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