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Judgment
This application under Section 54(1) of IBC r/w Regulation 45(3) of IBBI (Liquidation Process) Regulations, 2016 has been filed by the Applicant / Liquidator Mr. V. Duraisamy of the Corporate Debtor Sun Brushware Private Limited seeking dissolution of the Corporate Debtor in liquidation.
Briefly the facts are that on a petition filed under Section 7 of IBC, CIRP was initiated against the Corporate Debtor vide an order dated 26.02.2019. Shri. Mahalingam Suresh Kumar was appointed as the IRP. He invited the claims and constituted the COC. Central Bank of India, the secured Financial Creditor had the 100% voting rights in the CoC. The IRP was replaced by the Applicant after the resolution passed in the 1st CoC held on 27.03.2019 vide an order dated 29.04.2019. No resolution plan came during the CIRP period. Accordingly, an application for liquidation was filed which was allowed vide an order dated 25.11.2019 and the Applicant was appointed as the Liquidator. He caused the publication inviting claims from the stakeholders and submitted a preliminary report containing the list of stakeholders and asset memorandum. He revised the list of stakeholders as Annexure 3. He brought the assets of the Corporate Debtor in liquidation for sale through e-auction sale notice dated 06.10.2020 fixing the date of sale as 04.11.2020. He sold the movable assets i.e. plant and machinery, obsolete stocks and vehicles for a sum of Rs. 19,73,000/- to M/s. Karthiga Enterprises and issued the sale certificate after handing over physical possession. The Company had leasehold rights in respect of immovable property viz., land admeasuring 1.00 Acre situated in Madurai Integrated Textile Part at R.S. No. 179/1C & 179/2, Plot No. 12, Thathampatti, Vadipatti Taluk Madurai District and building constructed thereon measuring 6804 sq.ft. The lease was expiring on 05.07.2021. He placed the matter before the SCC on 30.01.2021 where it was decided to surrender the leasehold rights to the lessor M/s. Madurai Integrated Textile Part Limited and get the reimbursement of lease deposit amount. Accordingly, an application was filed which was allowed vide an order dated 03.08.2021.
The Applicant sent a letter dated 06.08.2021 to the lessor surrending the leasehold rights and demanding of reimbursement of lease deposit but the lessor delayed the payments. An application was moved seeking directions. On 17.12.2021, the lessor paid the lease deposit amount of Rs. 40,98,204/- after making deductions. In total, a sum of Rs. 60,71,204/- was realized out of the sale and surrender of leasehold rights.
There were pending PUFE applications against the Suspended Directors. The Liquidator distributed the sale proceeds under the waterfall mechanism as per Section 53 of IBC as tabulated below.
The Liquidator got the books of accounts certified from the Chartered Account as Annexure 12 and thereafter filed this application enclosing Form-H (Annexure 10) and final report (Annexure 11). He also forwarded the final report to the RoC on 16.02.2022 and the Liquidation Department of IBBI along with the excel sheet.
He filed a memo vide Sr. No. 2378 dated 08.04.2022, correcting the Form H as Annexure 15. After hearing, this Tribunal vide order dated 22.08.2025 directed the Applicant to file latest Form – H which he filed vide Sr. No. 3758 dated 09.09.2025 as Annexure 22 showing the details of amount realized and amount distributed to the Stakeholders along with other details which is reproduced as under:
In the Form H, the Applicant / Liquidator has submitted that the amount to be realised under Section 66 application which IA/604/2021 had been assigned to the unsecured Financial Creditor, S. Premsiva who has been substituted in place of the Liquidator vide an order dated 22.08.2025.
This Tribunal vide an order dated 21.11.2025 directed the Liquidator to file Form H in a revised format giving the details of the amount realized and the amount distributed. The Liquidator filed a memo vide Sr. No. 5129 dated 28.11.2025 stating that the Form H as Anneuxure 22 is in the revised format. On the same day, it was submitted by the Liquidator that the sale is complete, proceeds have been distributed, account has been closed, proceeds of PUFE application have been assigned to S. Premsiva, the unsecured Financial Creditor who will the beneficiary of the transaction. He submitted that except the above application, no other application is pending disposal.
The Applicant has submitted the compliances vide memo Sr. No. 1449 dated 29.03.2023 which are tabulated below:
The realisation and distribution are as under:
We have heard Ld. Counsel for the Applicant / Liquidator and perused the record.
The Liquidator has filed Form H showing the realization and distribution as tabulated above. As per the report, the Liquidator sold the movable assets to M/s. Karthiga Enterprises and issued sale certificate. He also surrendered the leasehold rights to the Lessor and got the reimbursement of the deposit amount. He distributed the sale proceeds as tabulated above. He got the books of accounts certified from the Chartered Accountant. He assigned the amount realizable under Section 66 of IBC in respect of IA/604/2021 to the unsecured Financial Creditor S. Premsiva, the beneficiary of the transaction. As on date, no application is pending disposal.
From the averments made in the Application and on perusal of final report and the Compliance Certificate filed in Form-H by the Applicant, it is seen that the Corporate Debtor has been completely liquidated. In the circumstances as averred and as prayed for by the Applicant, an order for dissolution is required to be passed by this Tribunal under Section 54 of the IBC, 2016. Accordingly, we order for the dissolution of the Corporate Debtor viz., Sun Brushware Private Limited.
The Liquidator, Mr. V. Duraisamy, is discharged as the Liquidator of the Corporate Debtor. The RoC is directed to change the status of the Corporate Debtor as “Dissolved”.
The Applicant / 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 atleast eight years after the dissolution of the Corporate Debtor, either with himself or with an information utility.
The Liquidator is directed to forward the copy of this Order to the RoC and IBBI for its records within a period of 7 days from the date of this Order.
In terms of the above, IA/77(CHE)/2022 in M.A. No. 968 of 2019 in CP/382/IB/2018 is allowed.
File be consigned to records.