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Judgment
This application is filed by the Liquidator of the Corporate Debtor (CD) M/s Impact Metals Limited under Regulation 45(3)(a) of the IBBI1 (Liquidation Process) Regulations, 2016, seeking closure of Liquidation process of the CD on account of successful sale of the CD as a going concern.
The Application
It is submitted that, the Committee of Creditors (CoC) in its 7th meeting held on 09.05.2024, with 100% voting share, resolved to liquidate the CD as a going concern on account of non-receipt of any viable and compliant Resolution Plan and further proposed the appointment of the Applicant herein Mr. Vakiti Vineeth Reddy as the Liquidator.
Pursuant thereto, this Tribunal, vide order dated 12.07.20242, ordered liquidation of the CD and appointed the Applicant as the Liquidator. Consequent upon his appointment, the Liquidator issued a Public Announcement on 19.07.2024 in the newspapers namely Financial Express (English) and Mana Telangana (Telugu), inviting claims from all stakeholders.
It is submitted that, owing to persistent non-cooperation on the part of the Stakeholders Consultation Committee (SCC) with regard to fixation of the Reserve Price, the Liquidator, in exercise of the powers vested in him under the applicable provisions of law, deviated from the advice of the SCC and issued a Public Auction Notice dated 11.07.2025 for sale of the CD as a going concern.
It is further submitted that, this Tribunal, vide order dated 04.08.2025 passed in I.A. (IBC) No. 1310 of 2025, took on record the deviation made by the Liquidator from the advice of the SCC.
Thereafter, an e-auction was conducted on 08.08.2025, wherein M/s Spacenet Enterprises India Limited emerged as the Successful Bidder with the highest bid amounting to Rs.1,56,06,750/-.
Subsequently, this Tribunal, vide order dated 13.10.2025 passed in I.A. No. 1631 of 2025, permitted the Liquidator to issue the Sale Certificate3 in favour of the successful bidder.
It is further submitted that, on account of continued non-cooperation by the SCC in relation to distribution of sale proceeds, the Liquidator once again deviated from the advice of the SCC. The said deviation was taken on record by this Tribunal in I.A. Nos. 1677 and 1761 of 2025, and the Liquidator was directed vide order dated 28.10.20254 to distribute the proceeds strictly in accordance with the waterfall mechanism prescribed under Section 53 of the Insolvency and Bankruptcy Code, 2016.
It is submitted that, this Tribunal, vide order dated 03.12.20255, directed the Liquidator to process the belated claim of Rs.15,10,58,566/- submitted by Shriram Finance Private Limited. Pursuant thereto, the claim was admitted and the SCC was reconstituted accordingly.
It is further submitted that, in the 8th SCC meeting, a circular resolution6 was circulated seeking approval for pursuing the pending fraudulent transaction application bearing I.A. No. 1474/HYD/2024 during the liquidation process. However, only one SCC member Mr Kudapa Gangadhar Rao holding 37.86% voting share voted in favour of the proposal. In order to safeguard the interests of the stakeholders, the Liquidator, on 04.02.2026, deviated from the passive majority view of the SCC and assigned the right to pursue the said litigation to the stakeholder holding the highest voting share.
It is submitted that, the total realisation from the liquidation estate amounted to Rs.1,59,19,678/-, apart from an additional sum of Rs.21,875.49 recovered from the dormant and attached bank accounts of the CD.
It is further submitted that, the entire sale proceeds and recoveries have been distributed amongst the stakeholders strictly in accordance with the waterfall mechanism prescribed under Section 53 of the Insolvency and Bankruptcy Code, 2016.
The Liquidator has periodically apprised this Tribunal of the progress of liquidation proceedings by filing six Quarterly Progress Reports and a Final Progress Report.
It is submitted that, a total of eight meetings of the Stakeholders Consultation Committee were duly convened during the liquidation process.
The Liquidator has also prepared and filed the Final Report7 in terms of Regulation 45(1) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, and has submitted the Compliance Certificate in Form-H8 in accordance with Regulation 45(3) thereof.
In view of the successful sale of the CD as a going concern, completion of distribution of the entire realised proceeds amongst the stakeholders, and compliance with all statutory requirements
---7 Pages 224 to 237 of the Application under the Insolvency and Bankruptcy Code, 2016 and the Regulations framed thereunder, the Applicant prays that this Tribunal may be pleased to grant the order for closure of the Liquidation Process of the CD.
The Decision
We heard and perused the application filed by the Liquidator under Regulation 45(3)(a) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, praying the Adjudicating Authority to order for closure of the liquidation process of the Corporate Debtor Company process is complete. The said provision reads as under:-
“Regulation 45 (3) (a): Final report prior to dissolution:-
(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.
Upon perusal of the Final Report, it is evident that the Liquidator has sold the Corporate Debtor as a going concern, as such, it is a fit case for closure of Liquidation process.
As a sequel to the above, we hereby order closure of the Liquidation proceedings against the Corporate Debtor namely M/s Impact Metals Limited from the date of this Order, in terms of Regulation 45 (3) of Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Consequently, the Liquidator stands relieved.
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 and the concerned authorities and hand over all the books and files of the Corporate Debtor M/s Impact Metals Limited which are in possession of the Liquidator to M/s Spacenet Enterprises India Limited, the Successful Bidder.
The Registry is directed to communicate this order to the Registrar of Companies, Hyderabad and concerned authorities for updating the master data.
A copy of this order be also forwarded to the Insolvency & Bankruptcy Board of India, New Delhi.
Certified Copy of this order may be issued, if applied for, upon compliance of all requisite formalities.
In terms of the above, this application is allowed and stands disposed of accordingly.