KCMT Machinery India Private Limited

This is a Company Petition filed by the Applicant in relation to the voluntary liquidation of M/s. KCMT Machinery India Private Limited under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016”), seeking dissolution of the Company.

The Applicant Company was incorporated on 29.01.2018 under the provisions of the Companies Act, 2013. The main object of the Company was manufacturing, wholesale trading, trading, buying, selling, importing and exporting of machineries, industrial machineries, material handling equipment, tools, components, parts, engineering goods, accessories and other related products.

The authorised share capital of the Company is Rs.6,00,000/- (Six Lakhs only) divided into 60,000 (Sixty Thousand) equity shares of Rs. 10/- (Rupees Ten only) each. The issued, subscribed and paid-up share capital of the Company is Rs.6,00,000/-(Rupees Six Lakhs only) consisting of 60,000 (Sixty Thousand) equity shares of Rs. 10/- (Rupees Ten only) each.

It is stated that the Company had not been carrying on its business from the preceding 2 years and not earning any profits. The Board of Directors considered the matter and was of the opinion that due to non-availability of business prospect and long term financial resources it is not financially viable to carry on the business activities of the Company and proposed to close down the company by way of voluntary liquidation.

It is stated that, the Board of Directors of the Company in the meeting held on 12.11.2019 passed a proposal to liquidate the Company voluntarily.

It is stated that as required under the provisions of Section 59 of the IBC, 2016, majority of directors made a declaration of solvency on 12.11.2019. (Copy of declaration of solvency along with the statement of Company assets and liabilities as at 31.10.2019 is marked and annexed as Annexure B).

It is stated that as per the proposal of Board of Directors, the members of the Company in their Extra General Meeting held on 25.11.2019 passed a special resolution required under Section 59 of IBC, 2016 read with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation process) Regultaions, 2019 to liquidate the Company Voluntarily and appointed Mr. G. Porselvam Insolvency Professional as liquidator of the Company.

It is stated that as required under regulations, the liquidator opened a Bank account in the name of "KCMT MACHINERY INDIA PRIVATE LIMITED (UNDER LIQUIDATION)" with Shinhan Bank, Kancheepuram Branch, Sriperambudur, Chennai for realisation and payment to the creditors and Members. (Copy of the Opening of the Bank account is attached Annexure E)

It is stated that the Liquidator published Form A Public announcement dated 29/11/2019 in both regional news paper Makkal Kural,Chennai Edition dated 29/11/2019 and English paper Trinity Mirror, Chennai Edition dated 29/11/2019. (Annexure F- copy of the advertisements)

It is stated that as per provisions of Section 178 of the Income Tax Act, 1961, the liquidator intimated the commencement of liquidation and appointment of liquidator to the Income Tax Authority on 05.12.2019. (Copy of No objection certificate from the Income tax, dtd. 22.03.2021 is enclosed and Marked as Annexure G)

It is stated that on the sad demise of Mr. G. Porselvam on 23.05.2021, the members of the company at an Extraordinary General Meeting held on 14.07.2021 appointed Ms. Usha Balasubramanian, an Insolvency Professional. (Annexure H – appointment of Ms. Usha Balasubramanian as liquidation of the Company)

It is stated that due to the sad demise of Ms. Usha Balasubramanian due to ill health on 26.12.2021, the members of the company at an Extraordinary General Meeting held on 21.01.2022 appointed Mr. K K Balasubramanian, an Insolvency Professional, having IP registration No.IBBI/IPA-001/IP/P-P01544/2018-19/12401 to act as liquidator of the Company in order to complete the winding up process. (Copies of special resolution along with notice of extraordinary general meeting are enclosed herewith and marked as Annexure I)

It is stated that the Applicant has filed an additional document of minutes of shareholders approving the extension of liquidation timeline till 24.11.2023.

It is stated that, there are no creditors and as such their consent confirming their special resolution passed by the members of the Company for the liquidation is not required. It is further stated that the liquidator has not received any claims from the creditors of the Company.

The details of Realization during the Voluntary Liquidation Process are as below;

The details of Distribution to the stakeholders during the Voluntary Liquidation Process are as below;

We have perused the documents. From the Auditors Certificate on receipts and payments pertaining to voluntary Liquidation, we find that the details of receipts are matching with the details of payments and the same are reproduced hereunder:-

Thus, on examining the submissions made by the Applicant and perusing the documents annexed to the Application we find that the affairs of the Company have been completely wound up and the assets of the Applicant Company have been completely liquidated and as such the Applicant Company deserves to be dissolved. Accordingly, in exercise of the powers conferred under Section 59(8) of IBC, 2016, we order dissolution of KCMT Machinery India Private Limited (CIN -U29309TN2018FTC120663). The Applicant Company shall stand dissolved from the date of this order. Accordingly, the CP(IB)/187/CHE/2023 stands allowed.

The Registry and the Liquidator are directed to serve a copy of this order upon the Registrar of Companies concerned, and also to IBBI, within 14 days from the date of this Order.