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Judgment
ORDER
The present Application has been filed under Section 54(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ‘Code’) and Regulation 45(3) of IBBI (Liquidation Process Regulations), 2016 (hereinafter referred to as ‘Regulations’) r/w Rule 11 of NCLT Rules, 2016 (hereinafter referred to as ‘Rules’) by the Liquidator seeking an order of dissolution of M/s. MPL Cars Private Limited, having CIN: U34103TN1999PTC042122 and Registered office at F1, Abul Regency, 1st Floor, No.6., South mada street, Srinagar colony, saidapet, Chennai, Tamil Nadu India 600015 (hereinafter referred to as ‘Corporate Debtor’).
It is stated that CIRP in respect of the Corporate Debtor was initiated on 13.08.2019 in CP/885(IB)/2018. Liquidation of the Corporate Debtor was ordered by this Tribunal vide order dated 27.01.2021 in IA/264/IB/2020 and the Applicant herein was appointed as the Liquidator.
It is stated that pursuant to the Liquidation order Applicant made public announcement inviting claims from the interested stakeholders in Financial Express (English) and Makkal Kural (Tamil) daily, Chennai edition on 13.02.2021. Last date for receiving claims 13.03.2021.
The applicant states that the liquidator has filed list of stakeholders on 26.04.2021 which is placed in page 29-35 of the typeset. It is submitted that no claims was received from any of the unsecured creditor, workman, employee, and shareholders, the List of stakeholders as averted in application is herein under,
5 It is submitted that applicant could not form liquidation estate as there are no asset in name of corporate debtor and under the custody of the liquidator.
Applicant has filed balance sheet of the corporate debtor as on 31.03.2021.
It is submitted that Liquidation account was opened on 09.03.2021 with state bank of India, Dasarathapuram branch Chennai. It is submitted that Liquidation account will be closed on receiving the dissolution order.
It is submitted that liquidator convened the stakeholders consultation committee members on 07.07.2022 were it was resolved to extend the liquidation period by six months up to 26.01.2023, In IA(IBC)/787/CHE/2022 vide order dated 16.08.2022 The liquidation period was extended for period of six months from 27.07.2022 to 26.01.2023.
9 Pursuant to that, it is submitted that Liquidator in compliance with regulation 13 and 34 of the liquidation regulation filed a Preliminary report detailing the Asset Memorandum of the Corporate Debtor.
10 It is stated that the Corporate Debtor has no realizable or salable assets, and continuing the process will only increase the cost of liquidation and hence the applicant has opted for the dissolution of the Corporate Debtor.
The Applicant/Liquidator in Form H and Closure report dated 22.03.2023 has stated the details of CIRP expenses and Liquidation cost and distribution to stakeholders as per section 52 and 53 of the code in the table as follows,
In the Audited Receipts & Payments filed by the Liquidator dated 29.04.2023, the details of the Receipts and Payments till 31.03.2023 have been tabulated and same are below,
Heard the submissions made by the Learned Counsel for the Applicant and perused the documents on record. It can be seen from the Liquidator’s closure cum progress report and Form H (Compliance Certificate) that there is no Liquidation estates with the Corporate Debtor.
14 In the Compliance Certificate filed in Form-H by the Applicant, there is no record about the PUFE transactions in the Corporate Debtor.
From the submissions of the Counsel and on perusal of the records we find that there are no realizable assets in the Corporate Debtor. For ready reference the relevant provisions are extracted herein under, Section 54 of the IBC, 2016 provides as follows: -
"Section 54
(1)Where the assets of the corporate debtor have been completely liquidated, the liquidator shall make an application to the Adjudicating Authority for the dissolution of such corporate debtor.
(2)The Adjudicating Authority shall on application filed by the liquidator under sub-section (1) order that the corporate debtor shall be dissolved from the date of that order and the corporate debtor shall be dissolved accordingly.
(3)A copy of an order under sub-section (2) shall within seven days from the date of such order, be forwarded to the authority with which the corporate debtor is registered."
Regulation 14 of the IBBI (Liquidation Process) Regulation 2016 reads as follows,
"Regulation 14: Early dissolution.
Any time after the preparation of the Preliminary Report, if it appears to the liquidator that-
(a)the realizable properties of the corporate debtor are insufficient to cover the cost of the liquidation process; and
(b)the affairs of the corporate debtor do not require any further investigation; he may apply to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution."
Regulation 45 of the IBBI (Liquidation Process) Regulation 2016 reads as follows,
"Regulation 45: Final report prior to dissolution.
(1)When the corporate debtor is liquidated, the liquidator shall make an account of the liquidation, showing how it has been conducted and how the corporate debtor’s assets have been liquidated.
(2)If the liquidation cost exceeds the estimated liquidation cost provided in the Preliminary Report, the liquidator shall explain the reasons for the same.
(3)The liquidator shall submit an application along with the final report and the compliance certificate in form H to the Adjudicating Authority for –
(a)closure of the liquidation process of the corporate debtor where the corporate debtor is sold as a going concern; or
(b)for the dissolution of the corporate debtor, in cases not covered under clause (a).
Going through the above provisions, the Circumstances prevailing and records placed before, this Tribunal, we find that it would be just and proper to order for the dissolution of the Corporate Debtor as per Section 54 of the Code.
Accordingly, we order the dissolution of the Corporate Debtor viz., M/s. MPL Cars Private Limited. It is ordered to close the bank account and any other account in the name of the company, The Liquidator is directed to forward a copy of this Order to the RoC concerned and also to the IBBI for its records and for updating the status of the Corporate Debtor on the 'MCA Master data' within a period of 7 days from the date of this Order.
Accordingly, IA (IBC)/1039(CHE)/2023 in IA/264/IB/2020 stands Allowed and disposed of.