AI Structured Summary
Not yet generated for this judgment
Judgment
ORDER
The case is fixed for pronouncement of order.
The order is pronounced in open Court vide separate sheet.
Per: Bench
The Instant Application is filed by Mr. Parag Sheth, Liquidator of M/s. Snehdaxa Infrastructure Pvt. Ltd., the Corporate Debtor, under section 54 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IB Code”) r.w. Regulation 45(3) of the IBBI (Liquidation Process) Regulations, 2016 with a prayer to dissolve the Corporate debtor i.e. M/s. Snehdaxa Infrastrucutre Pvt. Ltd. .
The brief facts of the case are as under:-
The Operational Creditor had filed an application under section 9 of the IB Code, 2016 for initiation of Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) of M/s. Snehdaxa Infrastrucutre Pvt. Ltd. Vide order dated 06.02.2019, CP(IB) No. 506 of 2018 was admitted and Mr. Parag Sheth was appointed as Interim Resolution Professional (hereinafter referred to as “IRP”).
The IRP issued a public annoucment dated 15.12.2019 under Regulation 6 of IBBI, 2016 inviting claim of the creditors of the Corporate Debtor. The IRP filed a report of constitution of CoC on 07.03.2019 and subsequently revised on 15.06.2019 under the said Regulation before this Adjudicating Authority disclosing the names of creditors who have filed the claims. Three meetings of the CoC were conducted on 12.03.2019, 24,06.2019 and 01.08.2019 respecvtively wherein the procedure to explore chances of resolution were discussed. The CoC approved on 01.08.2019, extension of CIRP (expiring on 13.08.2019) for a further period of 90 days’ which was approved on 19.08.2019 by this Adjudicating Authority.
The Applicant convened the 4th CoC meeting on 24.10.2019 and informed that there is no EoI received from any Prospective Resolution Applicant showing their interest for resolution in the matter of the Corporate Debtor. The mebers of the CoC resolved that there is no chance to revive and restart the Corporate Debtor, therefore, all the members of the CoC opted for closure of the CIRP process and gave their assent and authorized the RP to move an application for initiation of liquidation before the Adjudicating Authority. Accordingly, the application moved under Section 33 & 34 of the Code was approved on 11.12.2019 passed by this Adjudicating Authority in IA 768 of 2019 and the RP was allowed to continue as Liquidator.
The liquidator made public announcement in Form B as per procedure under Regulation 12 of the IBBI (liquidation process) Regulations, 2016 and called for claims from all stakeholders of Corporate Debtor. There were two each (total four) claims received from financial and operational creditors. A table of the claims received and admitted is given below:-
The liquidator formed the stakeholders consultation committee (SCC) comprising of 2 operational creditors (sales Tax Department and Income Tax Department) and one share holder, as the financial creditors could not form part of the SCC as they have not relinquished their security interest in the claim submitted by them with the liquidator, but were made invitees. The liquidator submitted detailed progress report during various periods as per Regulation 13 of the IBBI (LP)Regulations 2016 to the Hon’ble Tribunal.
The liquidator complied with all duties envisaged under the regulations and submits that the Valuation of the Assets were NIL and no claims against the debtors (who were also under liquidation) of the Corporate Debtor were recoverable as an operational creditor (in recovery). A detailed submission of the same was made in the petition. The liquidator convened the meeting of the stakeholders on 24 December 2021 and appraised the members the non recoverability and sought approval for filing the dissolution application before the Adjudicating Authority bench upon completion of all required compliance with respect of Income Tax Department and RoC. It is noted from the Progress reports that all the realizable properties of the Corporate Debtor are almost Nil, and no further investigation is required with regards to the Corporate Debtor and applicability of petition under Section 54 of the Code.
The liquidation cost of Rs.12,94,525 is to be paid as per the proportion arrived at by the liquidator (Canara Bank and Bank of India) to be paid by the financial creditors (respondent 1 and 2) are ordered to be paid in terms of the estimated liquidation cost as they had not relinquished their security for the CIRP process and the consent for dissolution has been given by both the financial creditors as per affidavit submitted by both the financial creditors through their learned counsels.
Having satisfied to the full extent that no further assets to be utilized and /or disposed of, for recovery of dues of the Stakeholders, there is no purpose of continuing and 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 24.12.2021 wherein the Stakeholders Consultation Committee resolved for dissolution of Corporate Debtor, hence, the instant application is filed by the Liquidator for appropriate order/directions under section 54 of the IB Code.
Heard submissions and perused the documents annexed to the Application. In view of the above and documents placed on record, this Authority in the exercise of the powers conferred under section 54(2) of the I.B. Code. We hereby order the dissolution of the Corporate Debtor viz., M/s. Snehdaxa Infrastructure Pvt Ltd from the date of this order and the Corporate Debtor stands dissolved.
Consequently, the Liquidator Mr. Parag Sheth is discharged from his duties and responsibilities as the Liquidator of the Corporate Debtor.
The Liquidator and the Registry are directed to send the copy of this order within 7 days from the date of this order to the ROC, Gujarat.
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.
A copy of this order shall also be forwarded to the IBBI, and concerned parties for their record.
Accordingly, the present application i.e. I.A.No.185(AHM)/2022 is allowed in terms of the above order and stand s disposed of.