Mr. Sunil Kumar Agarwal vs M/s Baid Narrow Fab Private Limited

The Operational Creditor had filed an application under section 9 of the IB Code, 2016 for initiation of the Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) of M/s. Baid Narrow Fab Private Limited which was admitted vide order dated 09.12.2019 and Mr. Sunil Kumar Agarwal was appointed as Interim Resolution Professional (hereinafter referred to as “IRP”).

Thereafter, the IRP was appointed as RP by the Committee of Creditors (hereinafter referred to as “CoC”) in their first meeting held on 06.01.2020. The CoC consist of the sole Financial Creditor, i.e., State Bank Of India. The invitation of Expression of Interest in Form – G was published on 16.07.2020 in Western Times English and Gujarati publications. The RP filed an application seeking for extension of the CIRP period which was allowed vide order dated 15.09.2020 and the CIRP period was extended by further 90 days.

In the 7th meeting of the CoC dated 12.11.2020, it was unanimously resolved to liquidate the Corporate Debtor as no resolution plan was received after the publication of the Expression of Interest. Hence, the Applicant filed an application for the liquidation of the Corporate Debtor under section 33 of the IB Code.

This Adjudicating Authority on 08.01.2021 passed the liquidation order of the Corporate Debtor and appointed the Applicant,i.e., Mr. Sunil Kumar Agarwal as Liquidator.

As directed by this Adjudicating Authority, the Liquidator gave necessary public announcements in the leading newspaper, inter alia, inviting proof of claims from all stakeholders and Creditors of the Corporate Debtor.

After receiving the claims from all the stakeholders, the liquidator filed the list of stakeholders to this Authority on 27.02.2021 and thereafter filed the revised list of stakeholders to this Authority on 07.04.2021. The revised list of the stakeholders is as under:

The first progress report was filed by the liquidator on 12.04.2021 and also submitted the Preliminary Report within 75 days before this Authority on 03.03.2021 under regulation 13 of Liquidation Regulations. As per the Asset memorandum, there are three immovable properties in the Corporate Debtor.

It is submitted by the applicant that eight e-auction publications were made by the liquidator for the realization of the aforesaid assets. All three assets were sold through e-auction, the total realized amount was Rs. 32.08 lakhs. The Asset Sale reports were submitted to this Authority on 15.10.2021 and 15.01.2022 respectively.

In compliance with Regulation 45 of the IBBI (Liquidation Process) Regulations, 2016, the Liquidator has filed the Final report and Compliance Certificate in Form H dated 12.02.2022. As per the valuation reports, the liquidation value of the liquidation estate was Rs. 60.47 lakhs and the fair value was Rs. 86.05 lakhs. However, the total realised amount from the sale of liquidation estate is Rs. 32.08 Lakhs. The amounts distributed to stakeholders as per section 53 read with section 52 of the Code is as under:

The Liquidator filed an application seeking for extension of the liquidation period which was allowed vide order dated 02.03.2022 and the liquidation period was extended by further 41 days.

In compliance with the order dated 02.03.2022, the applicant filed an additional affidavit on 07.03.2022 wherein it is stated and submitted that the total amount realized out of the liquidation process is Rs.32,08,000/- and the amount disbursed is Rs.32,08,000/-.The distribution statement produced by the applicant is given herein below:

It is further submitted that the demand draft of Rs. 4,38,711/- dated 02.03.2022 was issued to the ESIC and the bank account operated by the Liquidator stands closed.

This Bench sought some clarifications from the Applicant/Liquidator. In compliance with the clarification order, the Applicant filed an affidavit wherein it is submitted that the NOC was received from the State Bank of India on 18.10.2021 and the same is annexed with the affidavit. It is further submitted that the Operational Creditor had settled his claim during the CIRP and filed Form FA to the RP. However, the withdrawal of the CIRP was rejected by COC with 100% voting. It is also submitted that the said settlement amount was paid by the original parent company and not by the Corporate Debtor.

Having satisfied to the full extent that no further assets are available for disposal, for recovery of dues of the Stakeholders, no further proceedings would remain in the Liquidation Process of the Corporate Debtor. The liquidator conducted the final meeting of the Stakeholders Consultation Committee on 14.10.2021 wherein the Stakeholders Consultation Committee resolved for dissolution of the Corporate Debtor, hence, the instant application is filed by the Liquidator for appropriate order/directions under section 54 of the IB Code.

The Operational Creditor i.e. Mr. Darshan Y. Bhatt had filed an application under section 9 of the IB Code, 2016 for initiation of the Corporate Insolvency Resolution Process (hereinafter referred to as "CIRP") of M/s Ashok Transformers Private Limited. Vide order dated 25.08.2018 the said application was admitted and Mr. Sachin Dinkar Bhattbhatt was appointed as an Interim Resolution Professional (hereinafter referred to as "IRP") and thereafter the IRP was confirmed as RP.

The 4th meeting of the committee of creditors (for the brevity of 'CoC') held on 02.10.2018 unanimously passed a resolution with 100 % voting for liquidation as no resolution plan was received. Thereafter, the Applicant filed an application bearing I.A. No. 05 of 2019 for liquidation of the Corporate Debtor under section 33 of the IB Code.

This Adjudicating Authority vide its order dated 05.07.2019 directed the Corporate Debtor to be Liquidated and appointed the Applicant, i.e., Mr. Sachin Dinkar Bhattbhatt as the Liquidator.

As directed by this Adjudicating Authority, the Liquidator gave necessary public announcements in the leading newspaper, inter alia, inviting proof of claims from all stakeholders and Creditors of the Corporate Debtor and also notified the ROC, Gujarat about the corporate debtor in Liquidation.

It is further submitted that an appeal was filed by the State Tax officer before the Hon'ble NCLAT with respect to the partial rejection of their claim, which is pending consideration.

Thereafter, the Liquidator made a Paper Publication for auctioning the assets & properties of the corporate debtor consisting of (1) 350 KW Wind Mill and (2) Open Plot Land. The said auctions were successful and a sale certificate dated 10.02.2021 was issued in favour of M/s. Rajkumar Enterprise and a copy of the sale certificate is attached with the application. As far as the second property is concerned, the letter of intent was issued in favour of Mr. Akhil Kumar Gunda, the successful bidder. It is further submitted that in the said letter of intent, the successful bidder committed to pay the remaining amount of sale consideration of Rs. 18,00,000/- on or before 14/07/2021. It is further submitted that the said successful bidder vide email dated 17.07.2021 requested additional time to make the balance payment of Rs. 18,00,000/- with interest for a further period of 60 days under Clause -12 of Schedule-I read with Regulation 33 of the IBBI (Liquidation Process) Regulations, 2016.

The Liquidator filed an application seeking for extension of the liquidation period which was allowed vide order dated 21.09.2021 and the liquidation period was extended for a further two months from the date of this order.

It is further submitted that the Sale certificate dated 09.10.2021 was issued in favour of Mr Akhil Kumar Gunda and a copy of the said sale certificate is attached with the application. Hence, the entire sale proceeds were received by the Liquidator from the sale of assets of the corporate debtor and accordingly sale certificate was issued to the successful purchaser.

The Liquidator filed an application seeking an extension of the liquidation process for filing the liquidation closure report which was allowed vide order dated 01.12.2021 and the liquidation period was extended for further one month.

The Liquidator closed the Bank Account which was opened for liquidation. A copy of the account closure certificate along with the bank account statement is attached with the application. The auditor's certificate on the liquidation shows receipts and payments for the period of 05.07.2019 (i.e. liquidation commencement date) to 15.12.2021 is also attached with the application.

It is further submitted that the transaction audit report dated 30.09.2021 has been received wherein the auditor stated on page no.82 at point "B" that no financial irregularity has been observed.

In compliance with Regulation 45 of the IBBI (Liquidation Process) Regulations,2016, the Liquidator has filed the Final report on 21.12.2021.

In compliance with Regulation 45(3) of the IBBI (Liquidation Process) Regulations, 2016, the Liquidator has filed the Compliance Certificate in Form H dated 20.12.2021 wherein the liquidator mentioned the fair value at Rs. 12,93,751/- and the liquidation value of the liquidation estate as Rs.9,45,769/-. However, the total realised amount from the sale of liquidation estate is Rs. 1,94,01,183/-. The amount distributed to stakeholders as per section 52 or 53 of the Code is as under:

Having satisfied to the full extent that no further assets were to be utilized and/ or disposed of, for recovery of dues of the Stakeholders, no further proceedings would remain in the Liquidation Process of the Corporate Debtor, hence, the instant application is filed by the Liquidator for appropriate order/directions under section 54 of the IB Code.