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Judgment
This Application has been filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 by the Liquidator of the Corporate Debtor herein seeking for Dissolution of the Corporate Debtor viz., Power Car India Private Limited.
It is stated that CIRP of the Corporate Debtor was initiated by this Tribunal vide an order dated 02.09.2021 in IBA/454/2020 and the Applicant herein was appointed as Resolution Professional (RP) vide order dated 23.06.2022 in IA/519(CHE)/2022.
It is stated that in the 5th COC meeting held on 21.12.2022, the CoC passed a resolution to liquidate the CD. Pursuantly, the Applicant filed IA/IBC/906(CHE)/2023 in IBA/454/2020 before this Tribunal. Subsequently, this Tribunal vide order dated 27.07.2023 passed an order liquidating the Corporate Debtor and appointed the Applicant herein as the liquidator.
It is stated that pursuant to the appointment as liquidator, the Applicant issued a public announcement in Form-B in two newspapers viz., Trinity Mirror (English) and in Makkal Kural (Vernacular Tamil) inviting claims from the stakeholders in accordance with the provisions of Insolvency and Bankruptcy Code, 2016 (hereinafter IBC,2016) on 29.07.2023. The Preliminary Report was submitted to this Tribunal on 12.10.2023.
It is stated that, the liquidator had received the claims from the various stakeholders of the CD, filed the list of stakeholders and constituted the Stakeholders' Consultation Committee in accordance with Regulations 30,31 and 31A of the Liquidation Process Regulations on 12.10.2023.
It is stated that the Applicant conducted the 3rd SCC Meeting on 10.07.2024. The GST Department had submitted their claim for Rs. 3,87,66,741/- but there was no record of any GST returns so the liquidator couldn't confirm the amount, however after submission of audited accounts by the CD, the Liquidator confirmed the claim as Rs.2,81,79,956/- and rejected the balance claim. The Liquidator informed the same to the GST Department and then filed the revised stakeholders list to the IBBI on 23.08.2024.
It is stated that the applicant conducted the 5th SCC Meeting on 27.08.2024, and informed that there is no recovery of asset. The SCC Members then agreed and passed a resolution for Dissolution.
It is stated that, there are no activities, income and assets left. The balance amount which was lying in the bank account has been disbursed towards CIRP and Liquidation costs.
It is stated that the Liquidator closed the Kotak Bank Account on 10.12.2024. The bank statement of the Liquidation account for the period 29/03/2024 to 10/12/2024 is annexed as Annexure 12.
It is stated that there are no pending applications before this Tribunal as on the date of this Application.
It is stated that, all the quarterly progress reports with the NCLT and the IBBI were filed within the prescribed timelines as per Regulation 15 of the IBBI (Liquidation Process) Regulations, 2016.
It is stated that the liquidator has completed the liquidation process as per the regulations. It is stated that, the liquidator has mandated all the statutory authorities regarding the commencement of liquidation and also the conclusion of the liquidation process.
The details of the relevant compliances as mandated under Section 54 of the IBC, 2016 read with the IBBI (Liquidation Process) Regulations, 2016 are listed hereunder: -
| S. No | COMPLIANCE | AVERMENTS | PAGE NO. IN THE APPLICATION |
|---|---|---|---|
| 1 | Regulation 12 | Public Announcement in Form B | Page no.40-49 (Annexure 4) Page no.50-52 (Annexure 5A,5B, 5C) |
| 2 | Regulation 35(2) | Appointment of Registered Valuers where no valuation conducted during CIRP | NA |
| 3 | Regulation 31(2) | List of Stakeholders within 45 days of the Liquidation Commencement Date | Page No.77-98 (Annexure 7) Page No.40-49 (Annexure 4) |
| 4 | Regulation 31A | Constitution of Stakeholders Consultation Committee (SCC) | Page No.77-98 (Annexure 7) Page No.40-49 (Annexure 4) |
| 5 | Regulation 13 | Preliminary Report dated 12.10.2023 | Page No.53-76 ( Annexure 6) |
| 6 | Regulation 34 | Preparation of Asset Memorandum within Seventy-Five days from LCD | NA |
| 7 | Regulation 41 | Opening of Bank Account in the name of the company followed by the words 'in Liquidation' in a Scheduled Bank | Page No.159-160 (Annexure 12) |
| 8 | Proof of Closure of the above Bank Account and other account in the name of the Company | Page No.159-160 (Annexure 12) | |
| 9 | Regulation 15 | Quarterly Progress Reports and proof of filing the same before this Tribunal | Page No. 99-112 (Annexure 8) (5th Progress Report) |
| 10 | Regulation 36 | Asset Sale Reports after sale of assets | NA |
| 11 | Regulation 42(2) | Proof of Distribution within Ninety days from the receipt of realization | NA |
| 12 | Regulation 45 (3) | Final report along with Compliance Certificate in Form H to be filed along the Application | Page No.161-162 (Annexure 13) |
| 13 | Regulation 5 (1) (e) | Compilation of Minutes of SCC | Page No.113-149 (Annexure 9) |
| 14 | Regulation 15 | Audited Accounts of receipts and Payments | Page No.158 (Annexure 11) |
| 15 | Regulation 37 | Completion of Liquidation Process within one year from Liquidation Commencement Date or extension if any, date of the order & period | Para 17 of the Application (Completed liquidation process has: No extension is availed). |
| 16 | To furnish of details of any application pending before the Adjudicating Authority if any in relation to CD | No pending application before the NCLT and NCLAT. |
| Sl. No. | Stakeholders' undersection 53 (1) | Amount Claimed | Amount Admitted | Amount Distributed | Amount Distributed to the Amount Claimed (%) | Remarks |
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) |
| 1 | (a): CIRP Costs | 0.03 | 0.03 | 0.01 | 47.31% | 2 person not paid |
| 2 | (a): Liquidation Costs | 0.06 | 0.06 | 0.02 | 30.28 % | Amount recovered from the bank balance of CD. |
| 3 | (b)(i) workmen | NIL | NIL | NIL | NIL | NIL |
| 4 | (b)(ii) Secured Creditor – Finance | 2.35 | 2.35 | 0.00 | NIL | NIL |
| 5 | (c)Wages | NIL | NIL | NIL | NIL | NIL |
| 6 | (d)Unsecured creditors | 1.51 | 1.51 | 0.00 | NIL | NIL |
| 7 | (e)(i) cent & state govt. | 4.21 | 3.16 | 0.00 | NIL | NIL |
| 8 | (e) (ii) debts to secured creditors. | NIL | NIL | NIL | NIL | NIL |
| 9 | (e) Remaining debts & dues | NIL | NIL | NIL | NIL | NIL |
| 10 | (f) Pref. share holder | NIL | NIL | NIL | NIL | NIL |
| 11 | (g)Equity share holder. | NIL | NIL | NIL | NIL | NIL |
| Total | 8.16 | 7.11 | 0.03 | NIL | NIL | |
We have heard Ld. Counsel for the Applicant and perused the report, synopsis and the affidavit filed by the Liquidator.
The liquidator has filed the Compliance Report in Form H showing that that there are no assets available for realization and the distribution which is reproduced as under:
4.(a) Liquidation value of the liquidation estate:
(b)Amount realised from sale of liquidation estate: NIL
(c)The amounts distributed to stakeholders as per section 52 or 53 of Code are as und NIL
(Amount in Rs. Crores)
Sl. No. Stakeholders' undersection 53 (1) Amount Claimed Amount Admitted Amount Distributed Amount Distributed to the Amount Claimed (%) Remarks (1) (2) (3) (4) (5) (6) (7) 1 (a): CIRP Costs 0.03 0.03 0.01 47.31% 2 person not paid 2 (a): Liquidation Costs 0.06 0.06 0.02 30.28 % Amount recovered from the bank balance of CD. 3 (b)(i) workmen NIL NIL NIL NIL NIL 4 (b)(ii) Secured Creditor – Finance 2.35 2.35 0.00 NIL NIL 5 (c)Wages NIL NIL NIL NIL NIL 6 (d)Unsecured creditors 1.51 1.51 0.00 NIL NIL 7 (e)(i) cent & state govt. 4.21 3.16 0.00 NIL NIL 8 (e) (ii) debts to secured creditors. NIL NIL NIL NIL NIL 9 (e) Remaining debts & dues NIL NIL NIL NIL NIL 10 (f) Pref. share holder NIL NIL NIL NIL NIL 11 (g)Equity share holder. NIL NIL NIL NIL NIL Total 8.16 7.11 0.03 NIL NIL ★There are sub-categories in a category, please add rows for each sub-category.
It is stated that in pursuant to the directions provided in daily order dated 20.02.2025 in IBA/454/2020, the Liquidator has filed an affidavit stating that
"the pending fees payable towards the services rendered as the Resolution Professional and as the Liquidator, which is receivable from the stakeholder has been waived by the applicant/Liquidator, and there is no pending dues from them and the applicant/liquidator will not stake any claim from the stakeholders towards his pending fee".
From the averments made in the Application along with the perusal of the final report and the Compliance Certificate filed in Form-H by the Applicant, it is seen that the Corporate Debtor has been completely liquidated. In the circumstances as averred and as prayed for by the Applicant, an order for dissolution is required to be passed by this Tribunal under Section 54 of the IBC, 2016. Accordingly, we order for the dissolution of the Corporate Debtor viz., Power Car India Private Limited.
The Liquidator is directed to forward the copy of this Order to the Applicant concerned and also to the IBBI for its records within a period of 7 days from the date of this Order. Certified to be True Copy
In terms of the above, this IA(IBC)(Dis.)/2/CHE/2025 stands allowed and IBA/454/2020 also stands disposed of. File consigned to