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Judgment
ORDER
Vide separate order pronounced in open Court, the application is allowed. The Corporate Debtor viz., Ad Mart pvt Ltd is dissolved. File be consigned to records.
This Application has been filed by the Liquidator of the Corporate Debtor viz. AD MART Private Limited under Section 35(1)(n) of the IBC, 2016, Regulation 44(2) of the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016 R/W Rule 11 of the NCLT Rules, 2016) seeking relief as follows;
a. Pass an appropriate order for the Dissolution of the Corporate Debtor
b. To pass such other orders or further orders which may deem to be fit and proper and thus render justice.
It is stated that the Corporate Insolvency Resolution Process in respect of the Corporate Debtor viz. AD MART Private Limited was initiated by this Tribunal vide order dated 18.01.2021 and the applicant herein was appointed Resolution Professional (RP).
It is stated that the Resolution Professional filed an application bearing IA/362/CHE/2022 under Section 33 of IBC, 2016 seeking Liquidation of the Corporate Debtor. In pursuance of the same, this Tribunal vide order dated 28.04.2022 ordered for liquidation of the Corporate Debtor and appointed the Applicant herein as the Liquidator.
It is stated that the Applicant made a Public Announcement in Form –B on 02.05.2022 and prepared the list of stakeholders based on the claims received and submitted the same to this Tribunal. Further, the Applicant on 08.07.2022, submitted the Preliminary Report and Asset Memorandum to this Tribunal as per the Regulation 5 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016.
It is stated that the applicant updated the list of stakeholders and re-constituted the stake holders consultation committee as per proviso to Regulation 30 and Proviso to 31A(1) of the IBC 2016,and it was filed with this Tribunal on 07.07.2022.
The Auction history with respect to the steps taken by the Applicant to liquidate the assets of the Corporate Debtor and the corresponding results is tabulated below:
The Applicant has placed Latest Progress Report for the period 01.10.2023 to 31.12.2023.
It is stated that the Applicant conducted the First Stakeholder Consultation Committee Meeting ("SCC") on 10.08.2022 wherein the liquidator briefed the action taken by the liquidator. On 28.04.2022, the applicant conducted the Second SCC Meeting wherein the Applicant apprised to the stake holder of the complete books of accounts up to the CIRP and to file petition necessary for dissolution.
It is stated that the Applicant conducted the 3rd SCC meeting on 12.06.2023, where the financial creditor categorically said that, if the accounts cannot be completed by July 15, then dissolution application can be filed. The 4th SCC meeting was held on 28.11.2023.
It is stated that the applicant conducted the 5th SCC meeting on 18.03.2024. The liquidator apprised about the expenses and identification of fresh asset and to conduct è-auction for sale. Thereafter, 6th SCC meeting was held on 23.04.2024 where the liquidator informed the sale of the asset and payment of expense. They approved the same and agreed to file the dissolution application on or before 27.04.2024.
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 dated 02.05.2022 | 42 |
| 2 | Regulation 35(2) | Appointment of Registered Valuers where no valuation conducted during CIRP | N/A |
| 3 | Regulation 31(2) | List of Stakeholders within 45 days of the Liquidation Commencement Date | Annexure 6 |
| 4 | Regulation 31A | Constitution of Stakeholders Consultation Committee (SCC) | Annexure 6 |
| 5 | Regulation 13 | Preliminary Report dated 08.07.2022 | Annexure 5 |
| 6 | Regulation 34 | Preparation of Asset Memorandum within Seventy-Five days from LCD dated 08.07.2022 | Annexure 5 |
| 7 | Regulation 41 | Opening of Bank Account in the name of the company in Liquidation in a Scheduled Bank | N/A |
| 8 | Proof of Closure of the above Bank Account and other account in the name of the Company | Annexure 13 at Page Nos.191-192 | |
| 9 | Regulation 15 | Quarterly Progress Reports and proof of filing the same before this Tribunal | Page Nos.103-104 |
| 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 as no funds remain after CIRP and Liquidation Expenses |
| 12 | Regulation 45 (3) | Final report dated 29.04.2024 | Annexure 14 |
| 13 | Regulation 5 (1) (e) | Compilation of Minutes of SCC | Annexure 9 at Page Nos.142 - 172 |
| 14 | Regulation 15 | Audited Accounts of receipts and Payments | Annexure 12 |
| 15 | Regulation 37 | Completion of Liquidation Process within one year from Liquidation Commencement Date or extension if any, date of the order & period | Annexure 10 at Page Nos.173 |
| 16 | Form-H –Compliance Certificate | 195-200 |
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 for avoidance, Preferential, Undervalued or Fraudulent Transactions.
The liquidator has filed the synopsis showing the realization and the distribution which are reproduced as under:
Realization – Nil
Distribution
:
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., ADMART 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) 11/CHE/2024 stands allowed and IBA/140/2020 also stands disposed of.