AI Structured Summary
Not yet generated for this judgment
Judgment
This Application has been filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 by the liquidator of the Corporate Debtor herein seeking for an order for Dissolution of the Corporate Debtor viz., ABHIRAAMI CHEMICALS LIMITED.
It is stated that CIRP of the Corporate Debtor was initiated by this Tribunal vide order dated 04.10.2021 and the Applicant herein was appointed as Interim Resolution Professional (IRP)and thereafter as Resolution Professional (RP).
It is stated that the Liquidation of the Corporate Debtor was ordered by this Tribunal on 19.09.2022 in IA/173/CHE/2022 and the Applicant herein was appointed as the Liquidator.
Pursuant to the order of Liquidation, the Applicant caused the Public Announcement on 23.09.2022 in Form –B of Schedule II by inviting claims from all the stakeholders and fixed the last date for submission of claim as 20.10.2022 and the Liquidator received the claims from various stakeholders.
It is stated that the Liquidator duly verified the claims and prepared the list of stakeholders on 02.12.2022 and submitted the List of Claims before this Tribunal along with the Preliminary Report. The Liquidator did not receive further claims and therefore, the list of stakeholders and list of claims remain the same as submitted before this Tribunal.
It is stated that the Applicant had sent intimation letters to the various statutory authorities like ESI, PF, GST and Income Tax authorities on 10-10-2022 intimating the commencement of liquidation of the Corporate Debtor. The Income Tax Authority has provided its No-objection upon the receipt of the intimation letters.
It is stated that the Liquidator the Liquidator opened a bank account for the Corporate Debtor in the name and style of Abhiraami Chemicals Limited under Liquidation with State Bank of India, Mylapore Branch.
It is stated that the applicant in accordance with Regulation 31A of the Liquidation Regulations, the Stakeholders Consultation Committee (SCC) was duly constituted on 18.11.2022 comprising of the stakeholders of the Corporate Debtor.
It is stated that the requirement for Valuation of assets do not arise as the Corporate Debtor does not have any Immovable or Movable assets other than the assets mentioned herein below:
| S.NO | Nature of Asset | Estimated Realization Value |
|---|---|---|
| 1 | Bank Balance | 5,33,068 |
| 2 | Deposits | 30,000 |
| Total | 5,63,068 |
Therefore, the need for valuation does not arise.
It is stated that that the Corporate Debtor had certain realizable and refundable funds and in order to recover the same, the Liquidator had undertaken certain recovery process. The Liquidator was able to recover an amount of Rs. 48,580/- along with interest available with the Electricity Department of Puducherry. The Liquidator was unable to recover the deposit available with NSDL amounting to Rs.10,000/- and balance of Rs.25,152/- from Kotak Mahindra Bank that was transferred to DEAF ACCOUNT.
It is stated that as per the Meeting of Committee of Creditors (COC) held on 26.11.2021, the fees of the Liquidator was decided as a sum of Rs. 1,60,000/- for the entire liquidation period, from the date of the Adjudicating Authority passing the Order till the date of completion of liquidation. However, as the Corporate Debtor does not have sufficient funds, the Liquidator has suo moto decided to reduce his fees to Rs. 1,30,000/-. In addition to the fees payable to the liquidator any expenses incurred by the liquidator pertaining to the liquidation process shall also be payable to the liquidator.
It is stated that the details of the Liquidation Cost is as follows:
| S.No. | Particulars | Cost (Amount in Rs.) |
|---|---|---|
| 1. | Liquidator Fees | 1,30,000 |
| 2. | Advertisement expenses | 25,200 |
| 3. | Postal and printing charges | 4,002.36 |
| 4. | Annual Filing | 6000 |
| 5. | Reimbursement charges | 1200 |
| 6. | Professional Fees | 50,000 |
| 7. | Reimbursement expenses to advocate | 10,000 |
| 8. | Audit Fees for liquidation account | 30,000 |
| 9. | Statutory Audit Fees | 40,000 |
| 10. | Bank Charges | 127.96 |
| TOTAL | 2,96,530.32 |
The details of the relevant compliances as mandated under Section 54 of the IBC, 2016 read with the IBBI (Liquidation Process) Regulations, 2016 are listed hereunder:-
| S. No | COMPLIANCE | AVERMENTS | PAGE NO. IN THE APPLICATION |
|---|---|---|---|
| 1 | Regulation 12 | Public Announcement in Form B in Indian Express and Dinamani dated 23.09.2022 | 31-32 |
| 2 | Regulation 35(2) | Appointment of Registered Valuers where no valuation conducted during CIRP | As the CD did not have any fixed assets, registered valuers not appointed - Paragraph 13 |
| 3 | Regulation 31(2) | List of Stakeholders within 45 days of the Liquidation Commencement Date | 73 |
| 4 | Regulation 31A | Constitution of Stakeholders Consultation Committee (SCC) | 77 |
| 5 | Regulation 13 | Preliminary Report | 51 |
| 6 | Regulation 34 | Preparation of Asset Memorandum within Seventy-Five days from LCD | 64 |
| 7 | Regulation 41 | Opening of Bank Account in the name of the company in Liquidation in “State Bank of India” | Para 8 of the Application |
| 8 | Proof of Closure of the above Bank Account and other account in the name of the Company | 110-111 | |
| 9 | Regulation 15 | Quarterly Progress Reports and proof of filing the same before this Tribunal | 48 |
| 10 | Regulation 36 | Asset Sale Reports after sale of Reports | As the CD did not have any fixed assets and only had liquid assets in form of Bank balance and Security Deposits, Asset sale report was not prepared |
| 11 | Regulation 42(2) | Proof of Distribution within Ninety days from the receipt of realization | Para 20 of the application and Annexure 12 of the application |
| 12 | Regulation 45 (3) | Final report dated 18.09.2023 | Annexure A & C |
| 13 | Regulation 5 (1) (e) | Compilation of Minutes of SCC | 96 |
| 14 | Regulation 15 | Audited Accounts of receipts and Payments | 91 |
| 15 | Regulation 37 | Completion of Liquidation Process within one year from Liquidation Commencement Date or extension if any, date of the order & period | Para 21 of the application |
| 16 | Form-H –Compliance Certificate | 124-135 |
We have heard Ld. Counsel for the Applicant and perused the report and synopsis filed by the Liquidator.
It is stated in Form H that no applications are pending before this Tribunal for avoidance, Preferential, Undervalued or Fraudulent Transactions.
The liquidator has filed the synopsis showing the realization and the distribution which are reproduced as under:
Realization:
Sl. No. Assets Mode of Sale Estimated Liquidation Value Realisation Amount (Rs.) Date of Transfer to Liquidation Account (1) (2) (3) (4) (5) (6) 1. Balance with Banks Current account: i. Indian Bank (Karaikal) ii. State Bank of India (Karaikal) 7,881.55 5,25,186.00 7,881.55 5,25,186.00 23.12.2022 21.12.2022 2. Security Deposit with NSDL 10,000 Not Realized, as the amount NA
was adjusted towards pending fees 3. NSC pledged with Electricity Department, Pudhucherry 8,400 45,580/- 27.07.2023 4. Kotak Mahindra Bank, Current Account (transferred to DEAF A/c) 25,152 Not Realized as the amount was transferred to Depositor Education and Awareness Fund NA TOTAL 5,76,619 5,78,647 Distribution:
(Amount in Rs.)
| Sl No | Stakeholders* under section 53 (1) | Amount Claimed | Amount Admitted | Amount Distributed | Amount Distributed to the Amount Claim | Remarks |
| ed (%) | ||||||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) |
| 1 | (a): CIRP Costs | |||||
| 2 | (a): Liquidation Costs | 2,96,530 | 2,96,530 | 2,96,530 | 100% | |
| 3 | (b)(i) Workman Dues | NA | NA | NA | NA | NA |
| 4 | (b)(ii) Secured Creditors | NA | NA | NA | NA | NA |
| 5 | (c) Wages due to employees other than workman | NA | NA | NA | NA | NA |
| 6 | (d) unsecured Creditors | 1,12,33,885 | 1,12,33,885 | 1,87,738 | 1.68% | |
| 7 | (e)(i) Govt Dues | 3,37,666 | 3,37,666 | 0 | 0 | Out of the claim amount, Rs.94,380 was paid as asset held under trust outside the liquidation estate |
| 8 | (e) (ii) | NA | NA | NA | NA | |
| 9 | (f) remaining dues | 1,84,98,364 | 1,80,48,639 | 0 | 0 | |
| 10 | (g) Preference shareholders | NA | NA | NA | NA | |
| 11 | (h) Equity Shareholders | NA | NA | NA | NA | |
| Total | 3,03,66,445 | 2,99,12,820 | 4,84,268 | |||
17* From the averments made in the Application along with the perusal of the final report and the Compliance Certificate filed in Form-H by the Applicant, it is seen that the Corporate Debtor has been completely liquidated. In the circumstances as averred and as prayed for by the Applicant, an order for dissolution is required to be passed by this Tribunal under Section 54 of the IBC, 2016. Accordingly, we order for the dissolution of the Corporate Debtor viz., Abhiraami Chemicals Limited. The Liquidator is directed to forward the copy of this Order to the RoC concerned and also to the IBBI for its records within a period of 7 days from the date of this Order.
In terms of the above, this IA/(DIS) 8/CHE/2024 stands allowed and CP/IB/11/CHE/2021 also stands disposed of. File be consigned to records.