Mr. Vikas Prakash Gupta, Liquidator of M/s. Supreme Finefab Private Limited vs M/s. Supreme Finefab Private Limited

The case is fixed for the pronouncement of the order. The order is pronounced in the open court, vide separate sheet.

(Per: Bench)

The present Application IA(IBC)/1134(AHM)/2023 has been filed under Section 54(1) of the Insolvency and Bankruptcy Code, 2016 by the Liquidator seeking relief as follows:-

It is Submitted that the Petition for Corporate Insolvency Resolution Process was filed by Financial Creditor Viz. Bank of Baroda against the Corporate Debtor Viz. M/s Supreme Finefab Private Limited (Corporate Guarantor of M/s. Supreme (India) Impex Limited) bearing C.P. No. 132/7/NCLT/AHM/2019 u/s 7 of the Insolvency and Bankruptcy Code 2016pursuant to which order for initiation of CIRP was passed by the Hon'ble NCLT, Ahmedabad Bench via. order dated 16.03.2021 wherein Mr. Vikas Parkash Gupta was appointed as Interim Resolution Professional.

It was resolved in the 1" CoC Meeting to liquidate the Corporate Debtor and to file an application under Section 33 (2) of the IBC, 2016 and appoint Mr. Vikas Prakash Gupta as Liquidator.

It is stated that this Bench by its order dated 08.10.2021 in IA No. 555 of 2021 ordered for initiation of the Liquidation Process of M/s Supreme Finefab Private Limited and Mr. Vikas Prakash Gupta came to be appointed as Liquidator of the company in accordance with the provisions of Chapter III of part II of the Insolvency and Bankruptcy Code, 2016.

It is submitted that the final list of stakeholders as of 23.12.2021 was filed before this Tribunal in terms of Regulation 31(2) of the IBBI (Liquidation Process) Regulations, 2016. Paper Publication as mandated under the said Regulation is stated to have been made on 13.10.2021 in ‘Gujarat Guardian & Financial Express’ (Surat & Ahmedabad Edition) in Gujarati Language and ‘Financial Express (Ahmedabad Edition) in English Language. Further the list of Stakeholders and their claims received and admitted as per Regulation 31 of IBBI (Liquidation Process) Regulations, 2016 is as follows:

It is also seen that the Preliminary Report and the Asset Memorandum were filed before this Tribunal on 23.12.2021.

In terms of Regulation 31A the Applicant duly constituted the Stakeholders’ Consultation Committee (hereinafter referred to as ‘SCC’) and the nominees to represent in the SCC were duly intimated. The composition of the SCC is as under:

It is submitted that pursuant to the above constitution, the 1^st SCC meeting was held on 04.01.2022 wherein SCC meeting consists of four Creditors 1) Canara bank, 2) Bank of Baroda, 3) it was resolved by the members to proceed with. Copy of the First SCC Meeting dated 04.01.2022 is annexed at ANNEXURE-B of the Application.

It is submitted that during the 2^nd SCC meeting held on 09.02.2022. Copy of Copy of the Second SCC Meeting dated 09.01.2022 is annexed at ANNEXURE-C of the Application.

It is submitted that during the 3^rd SCC meeting held on 28.11.2022. Copy of the Third SCC Meeting dated 28.11.2022 is annexed at ANNEXURE-D of the Application.

It is submitted that during the 4^th SCC meeting held on 27.12.2022. Copy of the Fourth SCC Meeting dated 27.12.2022 is annexed at ANNEXURE-E of the Application.

It is submitted that during the 5^th SCC meeting held on 04.01.2023. In the Fifth SCC Meeting Applicant apprised the Stakeholders that in the Forensic Audit conducted of the Corporate Debtor, the Final Report of the Forensic Report was received wherein no transactions were identified that qualify as avoidable transactions under sections 43, 45, 50, and 66 of the Insolvency and Bankruptcy Code, 2016. Further, there are no assets of the Corporate Debtor. Therefore, the Applicant recommended for filing a dissolution application for the dissolution of the CD. Therefore, in the 5^th SCC Meeting it was resolved to file a dissolution application under section 54 of Insolvency & Bankruptcy Code, 2016, 2016 for dissolution of CD. Further, the Applicant apprised the SCC to make the final contribution towards Corporate Insolvency Resolution Process (CIRP) and Liquidation Cost. Copy of the Fifth Stakeholders Consultation Committee Meeting dated 04.01.2023 is annexed at ANNEXURE-F.

It is submitted by the Applicant that the Sixth Stakeholders Consultation Committee Meeting was held on 16/05/2023. In the Sixth Stakeholders Consultation Committee, it was apprised by the Applicant that transaction based audit was conducted to find out the avoidable transactions if any in the Corporate Debtor, but since no avoidable transactions are found even after the audit, it was resolved to file dissolution application. Further, the Liquidation Value of the Corporate Debtor is Rs. 35,787/- being the balance available in the Bank Account of the Corporate Debtor. The Applicant further apprised that detailed working of CIRP Cost and Liquidation cost along-with their proportionate share had already been shared with the members. Therefore, Applicant requested the members to kindly contribute towards their share of CIRP and Liquidation Cost to enable the Applicant to make payments of outstanding dues to the vendors and close the liquidation account to file a dissolution application. It was clarified by the Applicant that the Applicant will not be able to file dissolution application until and unless the contribution payable against the CIRP and Liquidation Cost is received from the Stakeholders. A copy of the Forensic Audit Report dated 20/03/2023 is annexed at Annexure-G of the application. Copy of the Sixth Stakeholders Consultation Committee Meeting dated 16/05/2023 is annexed at Annexure-H of the application. A copy of Form-H dated 15/09/2023 is annexed at Annexure-I of the application. A copy of the Final Report dated 15/09/2023 is annexed at Annexure-J of the application.

It is submitted by the Applicant that thereafter payment against the contribution towards CIRP and Liquidation costs were received from the SCC members on various dates. It is submitted that the Applicant has closed the Liquidation Account of the Corporate Debtor. A copy of the Certified Receipts and Payments Account is annexed at Annexure-K of the Application.

It is submitted that the Corporate Debtor had no tangible assets or prospects for recovery and has been non-functional for the past four years. The Forensics Audit for the Corporate Debtor was conducted in order to ensure that there were no diversions of funds or any other avoidable transactions during the relevant period before proceeding with the dissolution of the Corporate Debtor. According to the Forensic Audit, no transactions were identified that qualify as Avoidable Transactions under sections 43, 45, 50, and 66 of the Insolvency and Bankruptcy Code, 2016

There are no pending proceedings or litigation against or on behalf of the Corporate Debtor.

The Compliance Certificate (Form - H) as per Regulation 45 of the Liquidation Regulations is annexed along with the present Application at Annexure-I. Further, the Applicant has obtained the Auditors Report of the Financial Statements for the period ended 20.03.2023 and has placed the same on record at page 59-87. It was further submitted that all the Reports required under Regulation 15 of the IBBI (Liquidation Process) Regulations, 2016 within the lines prescribed are on record; the details of which are as follows:

It is also seen that the Liquidator has annexed the detailed final report along with this Application and the Liquidator has also filed his Compliance Certificate in Form-H. The distribution as per the same is extracted as under:

Heard the submissions made by the Learned Counsel for the Applicant. Section 54 of the IBC, 2016 provides as follows: -

Section 54

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 and in the circumstances as averred and as prayed for by the Applicant that an order for dissolution is to be passed by this Tribunal under Section 54 of the Code.

Accordingly, we hereby order the dissolution of the Corporate Debtor as under: -

i). The Corporate Debtor, viz., M/s. Supreme Finefab Private Limited having CIN No. U17119GJ1993PTC019577 stands dissolved from the date of this order as per Section 54(2) of the Insolvency and Bankruptcy Code, 2016.

ii). Consequently, the liquidator Mr. Vikas Prakash Gupta is discharged from his duties and responsibilities as the liquidator of the Corporate Debtor.

iii). The Liquidator shall preserve physical or electronic copy of the reports, registers, and books of account referred to in Regulations 45A of the IBBI (Liquidation Process) Regulations, 2016 for at least eight years after the dissolution of the Corporate Debtor, either with himself or with an information utility.

iv). The liquidator is directed to send a copy of this order to the RoC concerned and also to the IBBI within seven days from this order for information and necessary action.

In terms of the above, IA(IBC)/1134(AHM)/2023 is allowed and stands disposed of.