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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. Automotive Coaches and Components Limited, having CIN: U34100TN1980PLC008389, C1 & D6, Sipcot Industrial Complex, Gummidipoondi, Thiruvallur, Tamil Nadu - India – 601201 (hereinafter referred to as ‘Corporate Debtor’).
It is stated that CIRP in respect of the Corporate Debtor was initiated on 03.09.2019 in IBA/660/2019. Liquidation of the Corporate Debtor was ordered by this Tribunal vide order dated 18.03.2022 and Mrs. Subata M Maity was appointed as the liquidator vide IA(IBC)/848(CHE)/2021 in IBA/660/2019. Further vide order dated 22.08.2022 in IA (IBC)/872(CHE) 2022 in IBA/660/2019, the Applicant herein was appointed as the Liquidator.
It is stated that pursuant to the Liquidation order the Applicant made a public announcement on 20.03.2022 in ‘Financial Express’ (English) and ‘Dinamani’ (Tamil). The last date for submission of the claim before the Applicant was fixed as 17.04.2022.
The applicant submits the revised stakeholders list and claims received vide IA (IBC)/270(CHE) 2023.
The Applicant submits that the asset of the Corporate debtor were successfully sold out through the public auctions which was conducted through an entity called Bankauctions.com for which the notices were published in ‘Dinamani’ (Tamil) and ‘Financial Express’ (English). The Applicant submits that they have made the distribution of sale proceeds according to Section 53 of IBC and unclaimed and undistributed claim of superannuation amount of Rs.11,85,293 ( Rupees Eleven lakh eighty five thousand two hundred and ninety three only) with interest of Rs.47,542/- @ 12% P.a totally amounting to Rs.12,32,837/- has been deposited with IBBI on 30.11.2023.
The Applicant states that the assets and affairs of the corporate debtor have been completely liquidated hence seeking for dissolution of the corporate debtor. The realization is as follows,
The Applicant/Liquidator in his Closure report (the Progress report) dated 14.01.2022, has stated the details of CIRP expenses and Liquidation cost of Corporate Debtor in the table as 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 Form H (Compliance Certificate) that Assets has been realized and is transferred to the liquidation account and bank account is closed.
In the Audited Receipts & Payments filed by the Liquidator dated 13.01.2024, the details of the Receipts and Payments for the period commencing from 02.11.2022 to 15.12.2023 have been tabulated and same are below,
In the Compliance Certificate filed in Form-H by the Applicant, there is no record about the PUFE transactions in respect of the Corporate Debtor. The Applicant submits that assets and affairs of the corporate debtor have been completely liquidated. Receipts and Payments of the liquidation account certified by the auditor are also filed.
From the submissions of the Counsel and on perusal of the records we find that there are no realizable assets in the Corporate Debtor.
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. Automotive coaches and Components Limited. 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)(DIS)/1 (CHE) / 2024 in IBA / 660 / 2019 stands allowed and disposed of.