State Tax Officer -1 Dr. vs Sachin Dinkar Bhatta & Anr

ORDER

“ORDER

1.

The present application is filed by Mr. Sachin Dinkar Bhattbhatt Liquidator of M/s Ashok Transformers Private Limited, the Corporate Debtor, under section 54(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "IB Code") rw Regulations 45(3)(b) of the IBBI (Liquidation Process) Regulations, 2016 (for brevity Liquidation Regulations') for dissolution of the Corporate debtor Le. M/s Ashok Transformers Private Limited.

2.

The brief facts of the case are as under:

a)

The Operational Creditor ie. Mr. Darshan Y. Bhatt had filed an application under section 9 of the TB Code, 2016 for initiation of the Corporate Insolvency Resolution Process (hereinafter referred to as "CIRP) of M/s Ashok Transformers Private Limited Vide order dated 25.08.2018 the said application was admitted and Mr. Sachin Dinkar Bhattbhatt was appointed as an Interim Resolution Professional (hereinafter referred to as "IRP") and thereafter the IRP was confirmed as RP.

b)

The 4 meeting of the committee of creditors (for the brevity of 'CoC) held on 02.10.2018 unanimously passed a resolution with 100% voting for liquidation as no resolution plan was received. Thereafter, the Applicant filed an application bearing L.A. No, 05 of 2019 for liquidation of the Corporate Debtor under section 33 of the IB Code.

c)

This Adjudicating Authority vide its order dated 05.07.2019 directed the Corporate Debtor to be Liquidated and appointed the Applicant, Le, Mr. Sachin Dinkar Bhattbhatt as the Liquidator

d)

As directed by this Adjudicating Authority, the Liquidator gave necessary public announcements in the leading newspaper, inter alia, inviting proof of claims from all stakeholders and Creditors of the Corporate Debtor and also notified the ROC, Gujarat about the corporate debtor in Liquidation.

e)

It is further submitted that an appeal was filed by the State Tax officer before the Hon'ble NCLAT with respect to the partial rejection of their claim, which is pending consideration.

f)

Thereafter, the Liquidator made a Paper Publication for auctioning the assets & properties of the corporate debtor consisting of (1) 350 KW Wind Mill and (2) Open Plot Land The said auctions were successful and a sale certificate dated 10.02.2021 was issued in favour of M/s, Rajkumar Enterprise and a copy of the sale certificate is attached with the application. As far as the second property is concerned, the letter of intent was issued in favour of Mr. Akhil Kumar Gunda, the successful bidder. It is further submitted that in the said letter of intent, the successful bidder committed to pay the remaining amount of sale consideration of Rs. 18,00,000/- on or before 14/07/2021.11 in further submitted that the said successful bidder vide email dated 17.07.2021 requested additional time to make the balance payment of Rs. 18,00,000/- with interest for a further period of 60 days under Clause -12 of Schedule-1 read with Regulation 33 of the IBBI (Liquidation Process) Regulations, 2016

g)

The Liquidator filed an application seeking for extension of the liquidation period which was allowed vide order dated 21.09.2021 and the liquidation period was extended for a further two months from the date of this order

h)

It is further submitted that the Sale certificate dated 09.10.2021 was issued in favour of Mr Akhil Kumar Gunda and a copy of the said sale certificate is attached with the application. Hence, the entire sale proceeds were received by the Liquidator from the sale of assets of the corporate debtor and accordingly sale certificate was issued to the successful purchaser.

i)

The Liquidator filed an application seeking an extension of the liquidation process for filing the liquidation closure report which was allowed vide order dated 01.12.2021 and ther liquidation period was extended for further one month

j)

The Liquidator closed the Bank Account which was opened for liquidation. A copy of the account closure certificate along with the bank account statement is attached with the application. The auditor's certificate on the liquidation shown receipts and payments for the period of 05.07.2019 (i.e. liquidation commencement date) to 15.12.2021 is also attached with the application.

k)

It is further submitted that the transaction audit report dated 30.09.2021 has been received wherein the auditor stated on page no.82 at point "B" that no financial irregularity has been observed.

1)

In compliance with Regulation 45 of the IBBI (Liquidation Process) Regulations,2016, the Liquidator has filed the Final report on 21.12.2021.

m)

In compliance with Regulation 45(3) of the IBBI (Liquidation Process) Regulations, 2016, the Liquidator has filed the Compliance Certificate in Form H dated 20.12.2021 wherein the liquidator mentioned the fair value at Rs. 12.93,751/ and the liquidation value of the liquidation estate as Rs.9,45,769/-. However, the total realised amount from the sale of liquidation estate is Rs. 1,94,01,183/- The amount distributed to stakeholders as per section 52 or 53 of the Code is as under:

S.No.	Stakeholder	Amount claimed	Amount admitted	Amount Disbursed	Amount distributed to the amount claimed %
1.	a.CIRP Cost	13.34	13.34	13.34	100%
2	b.Liquidation cost	15.1	15.1	15.1	100%
3	b.(i)unsecured financial creditors	553.38	312.33	165.57	53%
4	B(ii)
5	© Operational creditors	167.5	116.02	0	0%
	Total	749.32	650.8	194.01	29.81%

n)

Having satisfied to the full extent that no further assets were to be utilized and/ or disposed of, for recovery of dues of the Stakeholders, no further proceedings would remain in the Liquidation Process of the Corporate Debtor, hence, the instant application is filed by the Liquidator for appropriate order/directions under section 54 of the IB Code.

3.

In view of the above, and documents placed on record, in exercise of the powers conferred under section54(2) of the I.B.Code, we hereby order the dissolution of the Corporate Debtor viz., M/s. Ashok Transformers Pvt. Ltd, having CIN No. U32201GJ1974PTC002502 from the date of this order and the Corporate Debtor stands dissolved

4.

Consequently, the Liquidator Mr. Sachin Dinkar Bhattbhatt is discharged from his duties and responsibilities as the Liquidator of the Corporate Debtor.

5.

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 along with all the books and files of the Corporate Debtor, Le, M/s Ashok Transformers Private Limited and further direct the ROC, Gujarat to update the Master Data of the corporate person and file the compliance report.

6.

A copy of this order shall also be forwarded to the IBBI and conce -rned parties for their record.

7.

Application is allowed in terms of the above order and stands disposed of.”

i)

That this Tribunal may allow the present appeal.

ii) That this Hon’ble Tribunal may be pleased to quash and set aside impugned order dated 18.09.2020 passed by Hon’ble National Company Law Tribunal at Ahmedabad in IA 704 of 2019 in CP(IB)219 of 2018.

iii)That this Hon’ble Tribunal may be pleased to grant an ad-interim relief by granting a stay on the order dated 18.09.2020 till final disposal of the pendency of the said appeal.

iv) That this Hon’ble Tribunal may direct the liquidator to not proceed with disbursement of proceeds till the issue with respect of recognition of the appellant as a secured creditor is decided or in the alternative create a provision for the admitted amount of claim of the department before proceeding to disburse the proceeds of liquidation amongst other stakeholders.

v)

Pass such other or further orders as may be deemed fit and proper in the facts and circumstances of the present case.

vi) Cost of the petition.