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TMI Blog2021 (8) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... er the audited financials as on 31.03.2019 the balance sheet the Company has fixed assets of about ₹ 13.79 lakhs which is not there in the Company physically, therefore, can not be valued. Similarly, there is Stock in Trade as per the books of account of about ₹ 27.93 lakhs which were primarily perishable food items and cannot be valued at present. There is no asset in the Company and the lone CoC member has recommended direct dissolution of the Company as no purpose would be served by first going in for liquidation (since no assts are there in the Company and no claim has been filed). The lone Financial Creditor is reconciled to the fact that he will not get anything by liquidation, therefore, has recommended in the CoC meet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d filed its report before the Tribunal. The last available audited balance sheet of the Corporate Debtor is stated to be for the year 2018-2019, stated to be last balance sheet, is reproduced below to demonstrate the position of the assets of the Corporate Debtor company: - 5. First CoC meeting was held on 17.03.2020 and the applicant was appointed as the Resolution professional. 6. The Applicant submits that due to Covid-19 restrictions the meeting was conducted via video conferencing on Google meet on 06.10.2020 to discuss and vote on dissolution of Corporate Debtor. 7. The applicant submits that the Directors of the Corporate Debtor are not at all co-operating and the assets are not known. Also, the stock being food items a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorized to take all necessary steps to deal with all matters connected, consequential and incidental to request for dissolution of Corporate Debtor and in particular for Filing of application with the concerned NCLT or such other competent authority. For such above purposes to engage advocates and if considered necessary, also engaged services of Counsel(s), solicitors, chartered accountants and other professional and declare and file all pleadings, report signed and execute Vakalatnama whenever necessary. To sign all applications, Petitioner, documents, sanction, to request for dissolution or delegate such authority to other person by a valid power of attorneys; and to do all acts and things as may be considered nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the Corporate Debtor . This Section is to be read along with Regulation 14 of IBBI (Liquidation Process) Regulations 2016 which says that any time after the preparation of a Preliminary Report if it appears to the Liquidator that the realizable properties of the Corporate Debtor are insufficient to cover the cost of Liquidation process, and the affairs of the Debtor do not require further investigation may apply to NCLT for early dissolution of the Corporate Debtor. 12. In this connection it is also worth to refer Section 59, Sub-Section 7 of IBC. Although this Section is in respect of Voluntary Liquidation of a Corporate Person, however, according to which where the affairs of the Corporate Person have been completely wound up, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the firm does not have any workmen and employees. The bench notes that there is no asset in the Company and as per the audited financials as on 31.03.2019 the balance sheet the Company has fixed assets of about ₹ 13.79 lakhs which is not there in the Company physically, therefore, can not be valued. Similarly, there is Stock in Trade as per the books of account of about ₹ 27.93 lakhs which were primarily perishable food items and cannot be valued at present. In view of this the RP mentions that no Information Memorandum (IM) has been prepared and no expression of interest could be invited. The bench also notes that the sole creditor in the Company which is the Financial Creditor, in the CoC meeting held on 06.10.2020, recommend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebtor stands dissolved. Consequently, the Resolution Professional stands relived. 15. The bench notes that in this case also, there is no asset in the Company and the lone CoC member has recommended direct dissolution of the Company as no purpose would be served by first going in for liquidation (since no assts are there in the Company and no claim has been filed). The lone Financial Creditor is reconciled to the fact that he will not get anything by liquidation, therefore, has recommended in the CoC meeting dated 06.10.2020, for a direct dissolution. 16. In view of the above circumstances and in light of a similar Judgment in MA/540/2019 in CP/490/IB/2018 passed by Chennai bench of NCLT, the Bench through this Order declares that i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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