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TMI Blog2025 (3) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... cised his/their roles appropriately in terms of the IBC Act and its regulations thereof and the role of the company (its shareholders) who initiated the voluntary liquidation and the ex-liquidator for having distributed to shareholders without proper assessment of liabilities has to be examined by the ROC and IBBI under their relevant provisions.
Let copy of this order be served to the RoC, Income Tax department, ESIC, CGST by the Liquidator for intimation and necessary action, if any, with a copy to IBBI. The registrar is also directed to send a copy of this order to the ROC and IBBI for their information and necessary action, if any. X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of bill of entries. The applicant stated that the earlier liquidator had published an announcement regarding liquidation process in the "Jai Hind" newspaper which does not have wide circulation. In response to the same, claims totalling Rs. 57,07,302/- was received against the total liabilities submitted by affidavit amounting to Rs. 19,58,43,146. It is also submitted that from the verification of financial records, the earlier liquidator had made a payment to shareholders amounting to Rs 134,99,99,990/- as a remittance of share capital for which applicant had sought an explanation. The erstwhile liquidator is stated to have replied stating that under Sec 53 of the IBC code 2016, such remittance was not as per waterfall mechanism prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ays of such resolution or the subsequent approval by the creditors, as the ease may be. (b) Sec 59 (6) imbibes "the provisions of See 35 to 53 of Chapter III and Chapter VII shall apply to voluntary liquidation proceedings for corporate persons with such modifications as may be necessary. (c) The Adjudicating authority as per Sec 59(7) and (8) of the IBC, shall, only when after the affairs have been completely would up, and its assets completely liquidated, and on an application filed by the liquidator under sub-section (7) pass an order and the Company shall be dissolved accordingly. (d) However, this application is filed under See 59 read with See 60(5)(c) read with 33(5) (N) of IBC 2016 read with Rule 11 of the NCLT rules a/w regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of liquidator have been clearly specified in Chapter Ill and we only observe the earlier liquidator resigned and the new liquidator took over who should have intimated the board about such appointment. (f) We do not see any grounds for admitting this application and pass any orders. It is observed from the report that before the liquidation process is completed, the earlier liquidator has transferred the equity to the shareholders and apparently the distribution specified in Rule 35 may not have been complied. (g) Even though we find that the status report has certain disbursals, there are contrary liabilities reported, the applicant has not formed any opinion in terms of Sec 40 of the NCLT Rules. (h) The Liquidator who succeeded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct the applicant if he is not able to proceed ahead with the procedure/conduct the voluntary process within the stipulated period, to inform the Board and ROC along with a copy of the status report seeking necessary directions in the matter before further proceeding with the voluntary liquidation process. Since no status report is required to be submitted to this authority and only a final report in terms of Rule 38 is to be submitted, this status report cannot be admitted and taken on record. Further, it is up to the applicant to send report if needed to the Board and ROC as the company continues to exist as no voluntary liquidation has been adjudicated. The applicant is at liberty to complete the process after complying with this order an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there are contrary liabilities reported, the applicant has not formed any opinion in terms of Regulation 40 of the IBBI (Voluntary Liquidation) Regulations, 2017. 5(i) However, since reliefs have been sought under Rule 11 of NCLT Rules, 2016, we may only direct the applicant if he is not able to proceed ahead with the procedure/conduct the voluntary process within the stipulated period, to inform the Board and ROC along with a copy of the status report seeking necessary directions in the matter before further proceeding with the voluntary liquidation process. Since no status report is required to be submitted to this authority and only a final report in terms of Regulation 38 of the IBBI (Voluntary Liquidation) Regulations, 2017 is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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