M/s. Kling Enterprises India Limited

P e r : B e n c h

The present application is filed by the Liquidator seeking order for closure of the Liquidation process as per Regulation 45(3) (a) of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

The facts of the case briefly are as follows:

The Applicant in accordance with Regulation 34 of IBBI (Liquidation Process) Regulations, 2016 prepared the Asset Memorandum and submitted the same to Adjudicating Authority on 18^th April 2024. (Copy of Asset Memorandum is at Annexure-4).

On preparation of the Asset Memorandum, a Public Announcement for e-Auction of the Assets of the CD was issued on 23 December 2024 inviting the eligible persons to submit their bid application to participate in the e-Auction and only one bid application was received along with EMD for the Sale of Corporate Debtor as a going concern basis. (Copy of Public Announcement given for e-Auction dated 23 December 2024 is at Annexure-5).

It is submitted that as per Public Announcement, the e-Auction was conducted through e-auction portal https://baanknet.com/eauction-psb on 24th January 2025 for which a single and final bid of Rs.23,00,000/- was received from Smt.Shirisha Rani Singhu, as against the reserve price of Rs.22,00,000/-. A Letter of Intent was issued to her which was unconditionally accepted by her. (Copy of the e-auction report submitted through e-auction portal and Letter of Intent are at Annexure - 6 and Annexure 7 respectively).

As the Liquidation period was scheduled to end on 31^st January, 2025 and the process of receiving the final sale consideration from the successful participant in the e-auction and distribution of the same to the stakeholders will take time, there was a possibility of not completing the Liquidation process by 31^st January, 2025 (last date for completion of liquidation process). Hence, the Liquidator briefed the Stakeholder Consultation Committee on 28^th January, 2025 and a resolution passed to authorize the Applicant to request the Adjudicating Authority for extension of liquidation period by 3 months to complete the liquidation process. (Copy of minutes of the Stakeholders Consultation Committee meeting held on 28 January 2025 with respect to extension of Liquidation Period is at Annexure – 8).

On obtaining the approval from the members of SCC, the applicant filed an Interlocutory Application No.278/2025 with the Adjudicating Authority praying for extension of the liquidation period by another 3 months. The Adjudicating Authority on 5^th February 2025 allowed the application and granted extension of liquidation period till 3^rd April 2025. (Copy of order of the Adjudicating Authority granting extension of liquidation period is at Annexure-9).

It is submitted that the successful lone bidder paid the full sale consideration of Rs.23,00,000/- into the Liquidation Account and the same was distributed to the stakeholders in terms of Section 53 of the IBC Code (Copy of the Bank Statement of Liquidation Account evidencing the receipt of funds and statement of distribution of the proceeds to the stakeholders including the outstanding CIRP cost, Liquidation cost are enclosed at Annexure – 10 and Annexure-11 respectively.)

The audit of Receipts and Payments of the Liquidation Account of the CD was carried out and Audit Report from Independent Chartered Accountant appointed by the applicant was submitted to the Liquidator. (Copy of Audit Report along with statement of Receipts and Payments of Liquidation Account of the CD is at Annexure-12.)

It is submitted that the applicant has filed four (4) progress reports since the commencement of the Liquidation of the CD and final report along with compliance certificate in Form-H was filed as per Regulation 45 of the IBBI (Liquidation Process Regulations) 2016 on 26^th March 2025 by way of an Interlocutory Application (IA No.1772 of 2023). (Copy of the Final Report and Compliance Certificate in Form-H filed with AA are at Annexure-13.)

It is submitted that the applicant paid all the outstanding expenses relating to the CIRP, Liquidation expenses of the CD and distributed the balance amount to the stakeholders under Section 53 of the IBC. On distribution of the sale proceeds, the Liquidator handed over the business of the CD to the successful bidder bringing the liquidation process to a close.

Therefore, the present application is filed before this Hon'ble Tribunal to seek orders for dissolution of the Corporate Debtor under Section 54 of the Code as the affairs of the Corporate Debtor have been completely wound up and its assets have been completely liquidated.

The Applicant declares that the matter regarding this Application/Petition is not pending before any Tribunal of law or any other authority.

We have perused the contents of the application and heard the learned PCS appearing for the Liquidator. We are satisfied that the liquidation process is completed as per the procedure laid-down under IBC, 2016 and hence the dissolution as requested by the Liquidator is allowed and the Corporate Debtor shall stand dissolved.

In the result, the Petition is allowed and Corporate Person shall stand dissolved from the date of this order. In exercise of the powers conferred on the Adjudicating Authority under Section 59 (7) of the Code, we hereby allow the Company Petition with the following directions:

Accordingly, this IA No.626 of 2025 in IA No.1772 of 2023 in C.P.(IB) No.102/10/HDB /2022 is allowed and disposed of.