Dena Bank vs Anurag Multipurpose Cold Storage Private Limited

Per: Rekha Kantilal Shah, Member (Technical)

This Court convened through physical mode.

Ld. Authorised Representative appearing on behalf of the liquidator was heard in extenso.

This application IA(IBC)(DIS.)/14(KB)2024 has been preferred to seek the following reliefs, inter alia: -

An application for initiating Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016 was filed by Dena Bank (now Bank of Baroda) against M/s. Anurag Multipurpose Coldstorage Pvt. Ltd. (herein after referred as 'Corporate Debtor'). The application was admitted vide Order dated 20.08.2019. Subsequently, the Corporate Debtor was admitted for liquidation vide Order dated 06.01.2021.

That the Applicant after getting appointment as a Liquidator for the Corporate Debtor has started performing her duties under the IBBI (Liquidation process) Regulations, 2016 (herein after referred to as "Liquidation Regulations") and made public announcement as per Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016 on 15.01.2021.

It was in the 26th SCC meeting, that the SCC with a 100% voting share approved the dissolution of the CD and authorized the liquidator to file an application u/s 54 of IBC, 2016 with the Adjudicating Authority.

That the RP had not taken custody of the assets of the CD during CIRP. The liquidator faced non-cooperation from the directors and hence filed an application being IA/425(KB)/2021 under Sec. 35 of IBC, 2016 seeking appropriate directions from this NCLT to direct the police to assist the liquidator in taking custody of the assets. That pursuant to the directions contained in the order dated 22nd April, 2021, possession of the assets of the Corporate Debtor had been taken by the Liquidator with the help of Authorities concerned.

That the valuation of the assets of the Corporate Debtor urging CIRP was done prior to the outbreak of the COVID-19 pandemic. The valuation reports were dated between 24.2.2020 and 9.3.2020. As a result, due to change in the economic and financial market scenario it was considered appropriate to get fresh valuation done. The same was done in the month of February & March, 2022.

That the liquidator has conducted 21 e-auctions to sell the assets of the CD. As per Regulation 33(1) of the Liquidation Regulations, the liquidator shall ordinarily sell the assets of the CD through an auction in the manner specified in Schedule I which are as follows-:

The asset block being Plant & Machinery was sold in the 16^th e-auction held on 16.8.2023. Land & Building of the CD received a bid in the 21st e-auction held on 17.5.2024, however, even after extensions allowed to the buyer, the balance sale consideration was not received. The land & building was finally sold in private sale as allowed by this Tribunal.

The Plant & Machinery of the CD was sold in the 16^th e-auction and sale certificate issued. In the 16^th e-auction held on 16.8.2023, successful bid was submitted by M/s Standard Workshop ("Successful Bidder") for acquisition of assets being Plant & Machinery present at the premises of the CD in relation to Eauction sale of Assets of Anurag Multipurpose Coldstorage Private Limited (In Liquidation) ("Corporate Debtor"). The successful bid amount was Rs. 21,64,093/-whereas the reserve price for the block was Rs. 19,64,093/-. On 17.8.2023, the letter of intent was issued by the liquidator to M/s Standard Workshop being the Successful Bidder of the specified assets. The same was accepted by the proprietor Md. Kadar Ali on 18.8.2023. The aggregate sale consideration paid by the Purchaser to the Liquidator, for the purchase of the specified assets of the Corporate Debtor was Rs. 21,64,093/- which had been duly received by the liquidator in the specified Bank Account of the Corporate Debtor.

It is evident from the ‘Form H’ that assets as per Asset Memorandum and Final Sale Report are as under: -

At this juncture, we would go through the various provisions of the Insolvency & Bankruptcy Code dealing with the dissolution of the Corporate Debtor which are as follows:-

We would note that the Applicant in compliance to the Code and its Regulations has discharged his duties and has made several efforts for the maximum realization from the assets of the corporate debtor. The liquidator has closed the bank account number 07110200000420 with Bank of Baroda, Sadananda Branch, Kolkata. Also, the liquidator has applied for cancellation/ surrender of PAN No. AAMCA1099G of the Corporate Debtor.

The liquidation Process is fully complete. Thus, the Liquidator in compliance has filed the present application under Section 54 read with Regulation 45 of IBBI (Liquidation Process) Regulation, 2016, seeking an Order of dissolution of the corporate debtor.

In compliance of regulation 15 of the Liquidation Process Regulations, the Liquidator has filed seventeen quarterly Progress Reports from time to time before this Adjudicating Authority and also the final report disclosing all the material facts and information with respect to the liquidation process of the Corporate Debtor. As per mandatory requirement under regulation 45(3) of the Liquidation Process Regulations, the Liquidator has prepared a compliance certificate under prescribed ‘Form H’. Both the final report and compliance certificate under form H is annexed with the application and marked as Annexure N.

A conjoint reading of these the statutory provisions as noted supra, mandates upon completion of the liquidation of the assets of the corporate debtor, filling of subsequent application to the Adjudicating Authority to seek dissolution under Section 54 of the IBC where the assets of the Corporate Debtor either have been completely liquidated after distribution among the Stakeholders or for early dissolution under Regulation 14 of the Liquidation Process Regulations, or where the realizable properties of the corporate debtor are insufficient to cover the cost of the liquidation process, the liquidator may apply to the Adjudicating Authority for early dissolution.

In view of the above facts and circumstances, this Adjudicating Authority in exercise of the powers conferred under sub-section (2) of section 54 of the Code hereby Orders dissolution of the Corporate Debtor, i.e., Anurag Multipurpose Cold Storage Private Limited from the date of this Order, thus stands dissolved and consequently, the Liquidator stands relieved from his responsibilities, subject to procedural compliances.

The Liquidator and the Registry are hereby directed to serve a copy of this Order upon the Registrar of Companies, West Bengal, within s e v e n days of receipt of this Order. The Registrar of Companies shall take further necessary action upon receipt of a copy of this Order.

Further, the Liquidator is directed to serve a copy of this Order upon the Insolvency and Bankruptcy Board of India (IBBI) within fourteen days of receipt of this order. The IBBI shall take further necessary action upon receipt of a copy of this Order.

All the assets of Corporate Debtor have been disposed of and distributed in accordance with the code and rules and regulations framed thereunder and the final report has been submitted.

IA(IBC)(DIS.)/14(KB)2025 along with C.P.(IB)/1426(KB)2018 is allowed with the above directions and the IA(IBC)(DIS.)/14(KB)2025 and C.P.(IB)/1426(KB)2018 are hereby disposed of accordingly.

The Registry is directed to send e-mail copies of the order forthwith to all the parties and their Ld. Counsel for information and for taking necessary steps.

Certified Copy of this Order may be issued, if applied for with the Registry, upon compliance of all requisite formalities.

File be consigned to records.