India Resurgence ARC Private Limited vs Master Weaver Ethnics India Private Limited

Orders pronounced. In the result, the Company i.e. M/s Master Weaver Ethnics India Private Limited is hereby dissolved as per the terms mentioned in the order and the Liquidator stands discharged.

Orders pronounced. In the result, this application is dismissed and disposed of. No costs.

Orders pronounced. In the result, this application is dismissed and disposed of. No costs.

Since orders passed in IA No 1523/2024, this Rst. App (IBC) becomes infructuous. Accordingly, this Rst. App (IBC) 5/2024 disposed of as infructuous.

This Application is filed by the Liquidator of the Corporate Debtor under Section 54(2) of the Insolvency and Bankruptcy Code, 2016 r/w Regulation 14 and 45 of IBBI (Liquidation Process) Regulations, 2016 for passing Dissolution Order of M/s Master Weaver Ethnics India Private Limited by this Hon'ble Adjudicating Authority and prays for discharging the applicant as Liquidator of the Corporate Debtor.

That in the instant matter, Hon'ble Tribunal vide Order Dated 04.04.2022 in CP (IB) No 255/7/HDB/2021 Admitted the petition under Section 7 of insolvency and Bankruptcy Code, 2016 filed by the M/s India Resurgence ARC Private Limited, Financial Creditor and initiated Corporate Insolvency Resolution Process against Corporate Debtor and appointed the Applicant herein as Interim Resolution Professional.

It is submitted that the Applicant/RP issued Public Announcement in FORM-A on 10.04.2022 as per Section 15 of Insolvency and Bankruptcy Code, 2016 Read with Regulation 6 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 in Financial Express English Daily News Paper and Nava Telangana Daily News Paper as the last date for submission of claims as 23.04.2022 and Resolution Professional has received one claim from Operational Creditors the Applicant admitted the claim Operational Creditor ESIC for an amount of rs.7,08,002 with 100% voting and Resolution professional constituted COC.

It is submitted that the applicant conducted First CoC Meeting on 12.05.2022 in the said Meeting the Applicant was confirmed as a Resolution Professional in terms of Section 22(3) (a) of the Insolvency and Bankruptcy Code, 2016 and the same was communicated to this Hon'ble Tribunal.

It is submitted that the Committee of Creditors in its to meeting held on 17.12.2022, after elaborately examining the possibility of reviving the Corporate Debtor came to the conclusion that there is no possibility of revival of the Corporate Debtor and COC with 92.08% voting resolved to liquidate the Company and to appoint the Resolution Professional/Applicant as Liquidator.

It is submitted that this Hon'ble Tribunal vide Order Dated: 22.05.2023 in IA (IB) 169/2023 in CP (IB) No.255/7/HDB/2021 passed an order for Liquidation and appointed Mr. M Ramana Reddy as Liquidator.

It is submitted that the Liquidator in accordance with Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 has issued Public Announcement Dated: 31.05.2023 in Financial Express English Daily News Paper and Nava Telangana Telugu Daily News Paper calling upon the stakeholders to submit their claims and received two claims from Employee State Insurance Corporation for Rs.7,08,002 and Aditya Birla Finance Limited for Ra:51,21,579.66/-.

It is submitted that the Liquidator in accordance with Regulation 13 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 has prepared Preliminary Report and List of Stakeholders and called the first meeting of the Stakeholders Consultation Committee on 26.06.2023 wherein the Preliminary Report submitted by the applicant was placed before the Committee The Stakeholders Consultation Committee, after elaborately examining the possibility of realizing proceeds from the assets of the Corporate Debtor, came to the conclusion that as there are no valuable assets of the Corporate Debtor, the applicant shall initiate for the dissolution of the Corporate Debtor and with 100% voting resolved to dissolve the Company and passed Resolution.

That the final report as per Regulation 45 of the IBBI Liquidation Process Regulations, 2016 is submitted by the Liquidator on 27.06.2023 and enclosed along with this Application at pg.41.

It is submitted that as per Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 while applying for Dissolution of the Corporate Debtor the Liquidator required submitting Compliance Certificate (Form-H) and enclosed the same in pg.38 of the interim application.

In the light of above facts and circumstances of the case, the only point that emerges for consideration of the Tribunal is :-Whether the Corporate Debtor can be dissolved?

We have heard the submissions made by the Applicant, perused the Application filed by the Liquidator and have gone through the documents on record filed by the applicant. Here, it is worthwhile referring to Section 54 of IBC, 2016 and Regulation 45 IBBI (Liquidation Process) Regulations, 2016:

We are satisfied that the criteria laid down under law has been fully complied with in this case. As such, the Corporate Debtor can be ordered to be dissolved. Hence, we hereby order dissolution of the Corporate Debtor as under: -

a. The Corporate Debtor M/s Master Weaver Ethnics India Private Limited stands dissolved from the date of this Order, in terms of Section 54(1) of IBC, 2016, and the Liquidator stands relieved.

b. The Liquidator is directed to send the copy of this Order within 7 days from the date of pronouncement to the Registrar of Companies, Hyderabad.

c. Upon dissolution of the Corporate Debtor, the records of the Company which are in possession of the Liquidator, be handed over by the Liquidator to the IBBI.

d. The Registry is also directed to communicate this order to the Registrar of Companies, Hyderabad for updating the master data.

e. A copy of this order be also forwarded to the Insolvency & Bankruptcy Board of India, New Delhi.

f. In terms of the above, IA (IBC) 1356 of 2023 filed by the Liquidator appointed for M/s Master Weaver Ethinics India Pvt Ltd (Corporate Debtor) for dissolution of the Company under Section 54 (1) of IBC, 2016 stands disposed of accordingly. Since the Corporate Debtor stood dissolved vide this order and no proceedings are now pending, therefore, the Registry is directed to consign the file to records.