Premraj Ramratan Laddha vs Punjab National Bank & Anr.

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

(Per: Bench)

The present Application IA(Dis.)/18(AHM)/2025 has been filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 r.w. Regulation 45(3) of IBBI (Liquidation Process) Regulations, 2016 by the Liquidator of the Corporate Debtor, Bajrang Cotgin Private Limited, seeking relief as follows:

The Applicant/Liquidator has placed the facts through the I.A. and documents in the following manner: -

a. The Applicant states and submits that, Corporate Debtor is a body corporate incorporated under the relevant provisions of the Companies Act, 1956, bearing Corporate Identification Number (CIN): U17110GJ2005PTC045566, and having its registered office at Nakshatra Heights-708, Opposite Telephone Exchange, 150 Ft. Ring Road, Rajkot, Gujarat-360005, India. The Corporate Debtor was engaged in the business of ginning and pressing of cotton bales, as well as manufacturing and trading of cotton seed oil.

b. The Applicant respectfully submits that a Financial Creditor, namely Oriental Bank of Commerce (now merged with Punjab National Bank), had filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of the Corporate Insolvency Resolution Process against the Corporate Debtor, which was admitted by this Hon'ble Adjudicating Authority vide order dated 15.03.2021, thereby commencing the CIRP of the Corporate Debtor. A copy of the said order dated 15.03.2021 is marked and annexed herewith as ANNEXURE-A.

c. That this Adjudicating Authority, upon due consideration, was pleased to pass an order under Section 33 of the Insolvency and Bankruptcy Code, 2016, directing liquidation of the Corporate Debtor in I.A. No. 188 of 2022 in C.P. (I.B.) No. 401 of 2019, vide order dated 04.07.2022, and further appointing the Applicant herein as the Liquidator of the Corporate Debtor in accordance with the provisions of Section 34 of the Insolvency and Bankruptcy Code, 2016. A copy of the order dated 04.07.2022 passed in I.A. No. 188 of 2022 in C.P. (I.B.) No. 401 of 2019 is marked and annexed herewith as ANNEXURE-B.

d. Thereafter, the Applicant herein, in his capacity as Liquidator, made a public announcement dated 05.07.2022, which was published on 07.07.2022 in Phulchhab (Gujarati) and The Times of India (English) in accordance with Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, calling upon all stakeholders to submit their claims before the Applicant-Liquidator. A copy of the public announcement dated 05.07.2022 is marked and annexed herewith as ANNEXURE-C.

e. Pursuant thereto, the Applicant-Liquidator received claims from stakeholders during the liquidation process, wherein the sole secured financial creditor, Punjab National Bank, submitted its claim after relinquishing its security interest in favour of the liquidation estate. Further, in compliance with Regulation 31 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, the Applicant prepared the list of stakeholders as on 08.08.2022, which was filed with the Registry of this Hon'ble Adjudicating Authority on 22.08.2022; subsequently, the said list was revised/modified as on 15.10.2022 and duly filed before this Adjudicating Authority on 14.01.2023. A copy of the List of Stakeholders and a copy of the Modified List of Stakeholders are collectively marked and annexed herewith as ANNEXURE-D (Colly.).

f. The Applicant herein submits that, in accordance with Regulation 15 read with Regulation 13 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, the Applicant prepared and submitted the Preliminary Report dated 13.08.2022 before this Adjudicating Authority within 75 days from the date of the liquidation order. A copy of the Preliminary Report dated 13.08.2022 is marked and annexed herewith as ANNEXURE-E.

g. The Applicant herein further submits that, in compliance with Regulation 34 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, the Applicant prepared and submitted the Asset Memorandum dated 13.08.2022 before this Adjudicating Authority. A copy of the Asset Memorandum dated 13.08.2022 is marked and annexed herewith as ANNEXURE-F.

h. The Applicant herein submits that two valuation reports were obtained from two independent registered valuers during the CIRP, valuing the assets of the Corporate Debtor at an average fair value of ₹6.98 Crores and a liquidation value of Rs. 4.76 Crores, and the said valuation was adopted for the liquidation process pursuant to deliberations held in the first Stakeholders' Consultation Committee meeting dated 10.08.2022. Copies of the valuation summary/extract are marked and annexed herewith as ANNEXURE-G.

j. It is respectfully submitted that pursuant to the e-auction sale results dated 06.10.2022, the assets of the Corporate Debtor were sold to Mr. Arvindbhai Virjibhai Jadav, Proprietor of M/s. Poonam Technocast, for a total consideration of Rs. 7,01,00,000/- which amount was duly received from the successful bidder in accordance with the terms of the e-auction.

k. Upon receipt of the full sale consideration, the Applicant-Liquidator issued the Sale Certificate, executed the Sale Deed, and handed over physical possession of the assets along with original title documents to the successful purchaser on 25.01.2023. The Applicant further submits that an amount of Rs. 6,75,75,000/-, after deduction of liquidation costs, liquidator's fees, and other applicable expenses, was distributed to the sole secured financial creditor, Punjab National Bank, in accordance with Section 53 of the Insolvency and Bankruptcy Code, 2016, read with other applicable provisions and regulations framed thereunder. A copy of the asset sale report was annexed with the progress report. Copies of the e-auction results dated 06.10.2022, asset sale report, and sale certificate dated 25.01.2023 are collectively marked and annexed herewith as ANNEXURE-I (Colly.).

l. The Applicant herein submits that during the CIRP, the Applicant had filed I.A. No. 572 of 2021 in C.P. (I.B.) No. 401 of 2019 under Sections 43, 45, 50, and 66 of the Insolvency and Bankruptcy Code, 2016, seeking avoidance of preferential, undervalued, fraudulent, and extortionate credit transactions, and the said application was pursued during the liquidation process as well.

m. Further, in compliance with Regulation 37A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, read with the provisions of the Insolvency and Bankruptcy Code, 2016, the Liquidator published newspaper advertisements dated 18.02.2023 in Business Standard (English) and Financial Express (Gujarati), inviting bids/offers for assignment of Not-Readily Realisable Assets (NRRA); however, no bid or Expression of Interest was received pursuant thereto. Copies of the said newspaper advertisements dated 18.02.2023 are annexed herewith and collectively marked as ANNEXURE-J (Colly.).

n. Thereafter, in the 7th meeting of the Stakeholders' Consultation Committee held on 16.03.2023, it was decided the manner in which proceedings, if any, relating to avoidance transactions under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Insolvency and Bankruptcy Code, 2016, shall be pursued by the Liquidator after dissolution or closure of the liquidation process, and that the proceeds, if any, arising therefrom shall be distributed to the stakeholders in accordance with Section 53 of the Insolvency and Bankruptcy Code, 2016.

o. Under the circumstances, in March 2023, the Applicant filed I.A. No. 489 of 2023 before this Hon'ble Tribunal seeking dissolution of the Company in Liquidation under Section 54 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, along with the Final Report and Form H. Thereafter, vide order dated 30.08.2024, this Hon'ble Tribunal was pleased to dismiss I.A. No. 489 of 2023 as being premature, in view of the pendency of I.A. No. 572 of 2021 filed under Sections 43 and 66 of the Insolvency and Bankruptcy Code, 2016. A copy of the order dated 30.08.2024 passed in I.A. No. 489 of 2023 is marked and annexed herewith as ANNEXURE-K.

p. The Applicant herein submits that I.A. No. 572 of 2021 in C.P. (I.B.) No. 401 of 2019, filed under Sections 43, 45, 50, and 66 of the Insolvency and Bankruptcy Code, 2016 seeking reversal of avoidable/PUFE transactions, was allowed and disposed of by this Hon'ble Adjudicating Authority vide order dated 18.09.2025, pursuant to which the Applicant-Liquidator issued notices to the concerned respondents for execution of the said order. A copy of the order dated 18.09.2025 passed in I.A. No. 572 of 2021 in C.P. (I.B.) No. 401 of 2019 is marked and annexed herewith as ANNEXURE-L.

q. It is further submitted that certain respondents have preferred appeals against the said order before the Hon'ble Appellate Authority, which were listed for hearing on 24.11.2025, and the next date of hearing is 02.12.2025; a copy of the order dated 24.11.2025 passed in the said appeals is marked and annexed herewith as ANNEXURE-L1. However, in the Stakeholders' Consultation Committee meeting held on 29.10.2025, the SCC approved Resolution No. 1, resolving that Punjab National Bank, being a member of the SCC, shall pursue further proceedings in respect of PUFE/avoidance transactions, including any pending or future appeals. A copy of the minutes of the SCC meeting dated 29.10.2025 is marked and annexed herewith as ANNEXURE-M.

r. The Applicant herein states that the Applicant had conducted several meetings of the Stakeholders' Consultation Committee (SCC) during the liquidation process, the details whereof are set out. Copies of the reports/minutes of the meetings of the Stakeholders' Consultation Committee are collectively marked and annexed herewith as ANNEXURE-N 1 to N 16 (Colly.).

s. The Applicant further states and submits that the Applicant has duly submitted progress reports as prescribed under Regulation 15 of the Insolvency and

aa. Furthermore, it is submitted that none of the stakeholders raised any objection to the dissolution of the Corporate Debtor during the meetings of the Stakeholders' Consultation Committee, and the Applicant herein further states that no other application concerning the subject matter of the present application has been filed by the Applicant before any other court or forum, including the Hon'ble Supreme Court of India; accordingly, the Applicant respectfully craves leave of this Hon'ble Adjudicating Authority to add, alter, amend, or modify the contents of the present application, if and when found necessary.

We have heard the counsel for the applicant and perused the material available on record.

t. Further, the progress report for the quarter ended on 30.09.2025, filed before this Adjudicating Authority on 15.10.2025, was listed for hearing on 29.10.2025; however, due to unavoidable circumstances, none appeared on behalf of the Applicant, and the matter is accordingly listed for hearing on 10.12.2025. Copies of the orders passed in respect of the progress reports are collectively marked and annexed herewith as ANNEXURE-O (Colly.).

u. The Applicant herein states and submits that, except for the appeals filed by certain respondents before the Hon'ble National Company Law Appellate Tribunal (NCLAT) against the order dated 18.09.2025 passed by this Hon'ble Tribunal in I.A. No. 572 of 2021 in C.P. (I.B.) No. 401 of 2019, and O.A. No. 1240 of 2019 pending before DRT-II, Ahmedabad, there are no other litigations pending against the Corporate Debtor before any other court, tribunal, or forum. It is further submitted that the Stakeholders’ Consultation Committee, in its meeting held on 29.10.2025, has confirmed that Punjab National Bank shall pursue all proceedings relating to PUFE/avoidance transactions, including the appeals pending before the Hon’ble NCLAT as referred to above, and that the proceeds, if any, realised from such proceedings shall be distributed to the stakeholders in accordance with the provisions of Section 53 of the Insolvency and Bankruptcy Code, 2016.

w. That the Liquidator had opened a Liquidation Account with Punjab National Bank, Ashram Road Branch, bearing Account No. 0170102100000293, through which all receipts and payments pertaining to the liquidation process were duly routed. The said account reflects a NIL balance after distribution of the proceeds from sale of the liquidation estate in accordance with Section 53 of the Insolvency and Bankruptcy Code, 2016, and the said bank account was duly closed on 29.11.2025. Copies of the statement of the said bank account along with the bank account closure certificate are annexed herewith and collectively marked as ANNEXURE-P (Colly.).

y. It is respectfully submitted that the Corporate Debtor has been completely liquidated in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016, and therefore, the Applicant herein has filed the present application seeking dissolution of the Corporate Debtor under Section 54 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, along with the Final Report dated 29.11.2025 and the Compliance Certificate in Form H dated 29.11.2025. Copies of the Final Report dated 29.11.2025, including the last progress report for the period from 01.10.2025 to 29.11.2025, and Form H dated 29.11.2025 are marked and annexed herewith as ANNEXURE-S (Colly.) and ANNEXURE-T, respectively.

z. The Applicant humbly submits that, in view of the aforesaid facts and circumstances of the case, the Applicant herein has preferred the present application before this Hon'ble Adjudicating Authority seeking an order for dissolution of the Corporate Debtor. The Applicant further states and submits that no amount of unclaimed dividends or undistributed proceeds remains with the Applicant, and accordingly, no amount is required to be transferred to the Corporate Liquidation Account.

aa. Furthermore, it is submitted that none of the stakeholders raised any objection to the dissolution of the Corporate Debtor during the meetings of the Stakeholders’ Consultation Committee, and the Applicant herein further states that no other application concerning the subject matter of the present application has been filed by the Applicant before any other court or forum, including the Hon’ble Supreme Court of India; accordingly, the Applicant respectfully craves leave of this Hon’ble Adjudicating Authority to add, alter, amend, or modify the contents of the present application, if and when found necessary.

We have heard the counsel for the applicant and perused the material available on record.

Findings and Observation of this Tribunal:

Based on the above observations and in exercise of the powers conferred under Section 54(1) of IBC, 2016, we pass the following order:-

Accordingly, with the above directions, the present application i.e. I.A. (Dis.)/18(AHM)/2025 in C.P.(IB)/401(AHM)2019 stands allowed and disposed of.