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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 an order for Dissolution of the Corporate Debtor viz., Fashion Equation Pvt. Ltd.
It is stated that CIRP of the Corporate Debtor was initiated by this Tribunal vide order dated 28.04.2022 and the Applicant herein was appointed as Interim Resolution Professional (IRP) and thereafter as Resolution Professional (RP).
It is stated that the Liquidation of the Corporate Debtor was ordered by this Tribunal on 08.02.2019 in IA/1377/2023 in CP/323/IB/2018 and the Applicant herein was appointed as the Liquidator.
It is stated that the Applicant constituted the Stakeholders Consultation Committee on 21.09.2023. The list of stakeholders as averred in the Application is extracted hereunder:-
It is stated that, the Corporate Debtor had no assets and that the Corporate Debtor has not been doing any business since COVID. The Corporate Debtor is not an on-going business entity.
It is stated that, this Tribunal allowed IA No. 1377 of 2023 on 24.07.2023 and ordered liquidation of the Corporate Debtor.
It is stated that, in the 3rd SCC Meeting on 14.3.2024, since there were no assets in the Corporate Debtor, the SCC with 76.2% voting, resolved to file the application before this Tribunal to dissolve the CD.
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 85- Final Report Clause 2 |
| 2 | Regulation 35(2) | Appointment of Registered Valuers where no valuation conducted during CIRP | Valuers appointed during CIRP only-Clause 12 of Final Report |
| 3 | Regulation 31(2) | List of Stakeholders within 45 days of the Liquidation Commencement Date | Page 85 Clause 6 of Final Report |
| Page 85- Clause 8 of Final Report | |||
| Page 85- Clause 6 of Final Report. | |||
| Page 85- Clause 8 of Final Report | |||
| 7 | Regulation 41 | Opening of Bank Account in the name of the company in Liquidation in “Canara Bank” | CIRP ACCOUNT Opened on 5.9.2022 changed to Liquidation account 1.9.2023 |
| 8 | Proof of Closure of the above Bank Account and other account in the name of the Company | Memo dated 25.09.2024 |
| 9 | Regulation 15 | Quarterly Progress Reports and proof of filing the same before this Tribunal | a)1st Qtr filed IA/1959(CHE)/2023 dated 30.10.2023 b)2nd Qtr ended 31.12.2024 taken on record vide IA No.191(CHE)/2023 dt, 29.1.2024. c)3rd Quarter ended 31.3.2024 taken record vide on IA (IBC)/1034(CHE)/2024 dated 2.5.2024 |
| 10 | Regulation 36 | Asset Sale Reports after sale of Reports | N/A |
| 11 | Regulation 42(2) | Proof of Distribution within Ninety days from the receipt of realization | N/A |
| 12 | Regulation 45 (3) | Final report | Final Report Page 85 -86 |
| 13 | Regulation 5 (1) (e) | Compilation of Minutes of SCC | Page 77-84 |
| 14 | Regulation 15 | Audited Accounts of receipts and Payments | Attached with IA (IBC)/1034(CHE)/2024 dated 2.5.2024 |
| 15 | Regulation 37 | Completion of Liquidation Process within one year from Liquidation Commencement Date or extension if any, date of the order & period | N/A |
| 16 | Form-H –Compliance Certificate | Page 87-92 |
We have heard Ld. Counsel for the Applicant and perused the report and synopsis filed by the Liquidator.
It is stated in Form H that no applications are pending before this Tribunal in respect of avoidance, Preferential, Undervalued or Fraudulent Transactions.
The liquidator has filed the synopsis showing the realization and the distribution which are reproduced as under:
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.,Fashion Equation Private Limited. The Liquidator is directed to forward the copy of this Order to the RoC concerned and also to the IBBI for its records within a period of 7 days from the date of this Order.
In terms of the above, this IA (Dis)16/CHE/2024 stands allowed and CP/323/IB/2018 also stands disposed of.