Shree Khodiyar Packaging vs Datsun Fashion Limited

The counsel appearing for the applicant submits that the present application is filed to substitute the name of the applicant being assignee in the Not-Readily Realisable Asset (NRRA) of the Corporate Debtor, as applicant in the application bearing No. 3527/2019 filed by the liquidator u/s 43, 45 & 66 of IBC 2016 & to allow the applicant (VRSA Consultancy LLP) to initiate the legal course of action for further take up this matter.

After briefly hearing the submissions of counsel appearing for the Applicant and upon perusing the record, the above Interlocutory Application is allowed and stans disposed of.

Heard the arguments of counsel appearing for the applicant and the above Interlocutory Application is allowed. Detail order will follow: List this matter on 25.08.2023.

The above application filed under Section 35(1)(n) of Insolvency & Bankruptcy Code, 2016 r/w Regulation 45(3)(b) of IBBI (Liquidation) Regulation, 2016 by Mr. Vijay Pitamber Lulla who is the Liquidator seeking the following reliefs;

The Adjudicating Authority vide its order dated 07.05.2018 on a Petition filed by the Operational Creditor under Section 9 of the Code directed initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor namely M/s. Datsun Fashion Limited, wherein Mr. Parth Kirtikumar Dave, was appointed as Interim Resolution Professional. Thereafter the Committee of Creditors of the Corporate Debtor replace the IRP and Mr. Vijay Pitambar Lulla, was proposed to be appointed as Resolution Professional (RP). The Hon’ble Bench vide order dated 07.09.2018 approved the appointment of the Mr. Vijay P. Lulla, having Registration No. IBBI/IPA-001/IP-P00323/2017-2018/10593 as the Resolution Professional of the Corporate Debtor. Thereafter, the IRP was appointed as Resolution Professional (RP) and the same was approved by this Bench.

The Applicant states that an Order under Section 33(2) was passed on 10.06.2019 whereunder the Debtor Company was allowed to be ‘Liquidated’ under the provisions of The Insolvency and Bankruptcy Code, 2016, since no Resolution Plan received, therefore in the 8^th CoC meeting held on 14.03.2019 passed a resolution for liquidation and the Applicant was appointed as the Liquidator in the 8^th COC Meeting held on 14.03.2019 and therefore, an order of Liquidation was passed vide Order dated 10.06.2019.

The Applicant submits that in accordance with the provision of the IBC and the regulations, necessary compliances were done by the liquidator by effecting public announcement and calling all the stakeholders to file their claims vide public announcement dated 18.07.2019.

Thereafter, the Applicant has timely submitted progress report before this Hon’ble Adjudicating Authority under Regulation 15 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Following Progress Reports have been filed from time to time during the liquidation period.

The Applicant states that in compliance of Regulation 45 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016, he filed the Final Report alongwith audited Financials of Corporate Debtor for the period 01.04.2022 to 10.09.2022. The Compliance Certificate (FORM H) dated 14.09.2022 duly certified by the Resolution Professional [Under Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016] is duly annexed with the Application.

The Applicant submits that there are no Assets nor any records available of the Corporate Debtor and continuing the liquidation process will serve no purpose. As such the Applicant is constrained to file the present application seeking order of early dissolution under Regulation 14 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations 2016) in respect of the Corporate Debtor.

The Applicant states that the Liquidation Bank Account of the Corporate Debtor having account in Bank of Baroda, Mumbai, bearing the Current Bank Account No. 03940200000851 under the Bank Account name as “M/s Datsun Fashion Limited in Liquidation” is duly closed on 10.08.2022. The document certifying the same is annexed to the Application.

On careful perusal of the Application and the Progress Report on record the Bench observes that neither there are neither any Assets left with the Corporate Debtor nor any trade receivables are available, as is also evident from the Report of the Liquidator.

For the purpose of pronouncement of Dissolution of a Corporate Debtor Section 54 of The Insolvency and Bankruptcy Code, 2016, reads as under :-

As a consequence, through this Order it is hereby declared that not only it is just and equitable but because of the fact that no asset is available for the purpose of ‘Liquidation’ as reported by Liquidator, this is a fit case of a Corporate Debtor to be dissolved as prescribed under Section 54 of The Insolvency and Bankruptcy Code, 2016. Ordered accordingly, the Company stands ‘Dissolved’ from the date of this Order.

Copy of this Order shall be forwarded within 7 (seven) days to the concerned authorities and the Registrar of Companies having jurisdiction, for further necessary action as prescribed under Law.

Accordingly, IA No. 3227 of 2022 is hereby allowed and disposed of.

It is relevant and appropriate to clarify here that the Liquidator has filed another miscellaneous application bearing No.3527/2019, U/s 66 of the Code to pass necessary orders to the persons to deposit into the bank account of the corporate debtor, the monies/proceeds of assets pertaining to the Corporate Debtor which have been illegally siphoned off by the Respondents Nos. 1 to 26 to various persons within and outside India and also pass orders to the authorities to recover such monies/assets, and to pass necessary order to the person to deposit into the bank account of the corporate debtor, the monies/proceeds of assets pertaining to the corporate debtor which have been transferred preferentially under Section 43 of the IBC,2016. Subsequently the recoverables were assigned to M/s VRSA Consultancy LLP, who had already stepped into the shoes of liquidator and the assignee will take care of the above application and therefore the above Company Petition is kept pending only for the purpose of the disposal of the M.A. 3527/2019.