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Judgment
ORDER
IA 2712/2024 (NEW IA) in C.P. (IB)/2794(MB)2019
Ms. Urfi Ansari, Ld. Counsel for the Applicant/Liquidator of the Corporate Debtor is present.
This is an Interlocutory Application filed under Section 5 35(1 )(n) of the Insolvency Bankruptcy Code, 2016 read with regulation 45(3)(a) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016 by the Applicant, Mr. Arun Bagaria who is the Liquidator of the Corporate Debtor, Matfix Bizcom Services Private Limited Seeking Closure of the Liquidation Process of the Corporate Debtor, Matfix Bizcom Services Private Limited.
The Adjudicating Authority vide its order dated 13.12.2019, on a Petition filed by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016 thereby initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor viz Matfix Bizcom Services Private Limited, wherein the Applicant herein was appointed as Interim Resolution Professional of the Corporate Debtor, who subsequently confirmed as the Resolution Professional of the Corporate Debtor in the 1st meeting of the Committee of Creditors held on 18.01.2020.
The Applicant took charge as the IRP and issued Public Announcement in FORM A dated 19th December, 2019 in Free Press Journal (English) and Navshakti (Marathi). Pursuant to the Public Announcement, the Applicant received claim from Punjab National Bank which was duly verified and the Committee of Creditors. ("CoC") was constituted.
Thereafter, the Committee of Creditors in its 4th meeting of the Committee of Creditors held on 05.10.2020, passed the resolution for liquidation of the Corporate Debtor. Accordingly, this Bench vide its Order dated 23.02.2021, allowed Interlocutory Application bearing IA No. 271 of 2021 thereby initiating Liquidation Process against the Corporate Debtor and the Applicant herein was appointed as the Liquidator of the Corporate Debtor.
Further, Liquidator filed Early Dissolution Application under Regulation 14 of IBBI. (Liquidation Process) Regulation, 2016 ·along with Disclaimer of Onerous Property under Regulation 10 of IBBI (Liquidation Process) Regulation, 2016 bearing registration no. 2572 of 2021 (which was withdrawn on 23.06.2023, for proceeding with the auction process of Assets of the Corporate Debtor). The Committee of Stakeholders in their meeting dated 17.06.2021, passed a resolution with 100% of majority to dissolve the Corporate on the basis of his efforts, that the Assets of the Corporate Debtor were not realizable and no market value was available for the Assets.
Liquidator made Public Announcement in Free Press Journal (English) Newspaper and Navshakti (Marathi) Newspaper in Mumbai Edition dated 06.03.2021, calling upon the stakeholders to submit their claims by 04.04.2021. Punjab National Bank submitted its claim on 08.03.2021 and subsequently, the Applicant constituted the Stakeholders Consultation Committee.
The Applicant duly prepared the Asset Memorandum Report and the Preliminary Report as envisaged under Regulation 34 and 13 of the Liquidation Process Regulations and submitted the same to this Tribunal on 08.05.2021.
It is submitted that the Liquidator proceed with the E-Auction Process for Sale of Asset M/s. Matrix Bizcom Services Private Limited (In Liquidation) under the provisions of Insolvency and Bankruptcy Code, 2016, opened on 22.06.2023 and has received one Potential Bidder namely Lokdhun Telemedia, which was later on declared as successful bidder dated 08.07.2023. Liquidator confirmed the sale of the Corporate Debtor as going concern vide the issuance of this Sale Certificate dated 11.01.2024, as a going concern, on "As is where is basis", "As is what is basis", "Whatever there is basis" and "No recourse" basis. Sale as a going concern under regulation 32A of IBBI Regulations, 2016 completed in the favor of Lokdhun Telemedia Private Limited and liquidator executed certificate of Sale to transfer the assets as a going concern. The Sale stood completed.
The Counsel for the Applicant submits that the Bank Account of the Corporate Debtor has been closed. This submission of the Counsel for the Applicant found substantiated after referring to the Letter dt. 05.02.2024 issued by IDBI Bank which is annexed at Exhibit “D”, which demonstrates the balance amount as INR 0.00 as on 05.02.2024.
The Applicant states that in compliance of Regulation 45(3) of The Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016, he filed the Final Report dt. 17.01.2024 and the same is also annexed to the present Interlocutory Application.
The Applicant further submits that all the compliances have been duly carried out by the Applicant as per the Code and the Liquidation Process Regulations and the Applicant has prepared the Form H, dt. 17.01.2024. The Applicant submits that the Corporate Debtor is sold as a going concern to Lokdhun. The Applicant has discharged his duties and conducted .the sale of the Corporate Debtor as per the provisions of the Code. It is also submitted by the Counsel for the Applicant that no litigation whatsoever is pending and no Avoidance Application has been assigned as Non Readily Reliable Assets; thus, submits that it is appropriate to proceed with the closure of liquidation process of the Corporate Debtor in tem1s of Section 35 (1) (n) of the Code.
Taking into consideration the current position of the Corporate Debtor and considering the fact that there is absolutely no means/sources available with the Corporate Debtor to discharge its liabilities. Hence, the present Interlocutory Application has been filed seeking closure of the Liquidation Process of the Corporate Debtor.
In view of the above facts and circumstances, the submissions made by the Counsel for the Liquidator, upon the perusal of the Final Report and the Compliance Certificate filed in Form-H by the Applicant/Liquidator of the Corporate Debtor, it is seen that the Corporate Debtor has been completely Liquidated, and this Bench is of the considered view that the Liquidation Proceedings against the Company Matrix Bizcom Services Private Limited declared to be Completed. Accordingly, we declare the closure of the Liquidation Process of the Corporate Debtor.
Consequently, the Liquidator Mr. Arun Bagaria is discharged from his duties and responsibilities as the Liquidator of the Corporate Debtor, viz. Matrix Bizcom Services Private Limited.
The Applicant is further directed to serve a copy of this order upon the jurisdictional Registrar of Companies, with which the company is registered, within Fourteen days of receipt of this order.
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, either with himself or with an information utility.
With the aforesaid observations and directions, the Interlocutory Application bearing IA No. 2712 of 2024, is disposed of as Allowed. Resultantly, the Company Petition bearing CP (IB) No. 2794 of 2019, is disposed of.
There will, however, be no order as to costs. Ordered Accordingly.