Vivek Bansal vs M/s. Smartec Systems Private Limited

Per : Bench

This Application is filed by the Liquidator of the Corporate Debtor (CD) M/s. Smartec Systems Private Limited under Section 54(1) of the Insolvency & Bankruptcy Code, 2016 r/w Regulation 45(3) of Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016, seeking for dissolution of the Corporate Debtor.

The Liquidation Order was issued by the Tribunal through an Order dated 13.11.2019, calling for the liquidation of M/s. Smartec Systems Private Limited (CD). The Applicant was subsequently appointed as the Liquidator by an Order dated 19.11.2019.

Following the appointment, the Liquidator issued a public announcement in Form-B on 06.12.2019, seeking claims from the CD's creditors. Three claims were received from the creditors, viz: 1) Mr. Vivek Bansal, Operational Creditor on 03.01.2020, 2) Bank of Baroda, Financial Creditor on 04.01.2020, and 3) ESI, Operational Creditor on 24.11.2021. The claims from Operational and Financial Creditors couldn't be verified by the Liquidator due to the absence of the CD's books of accounts. The ESI claim was initially rejected for late submission but later approved after a delay of 688 days, sanctioned by the Adjudicating Authority.

The Liquidator reported that aside from the Vehicle (Audi car with Registration No. AP09CN3900), no other assets were identified in the CD. With assistance from Police Officers and Win Win Financial Services (Debt and Asset Recovery Management), the vehicle was located and placed under the custody of Win Win Financial Services.

During the hearing on 03.01.2023, the Adjudicating Authority instructed the Liquidator to sell the Audi car (Registration No. AP09CN3900) by way of a physical auction.

The Liquidator engaged two Registered Valuers, as per Regulations 27 & 35 of IBBI (Insolvency Resolution Process of Corporate Persons) Regulations, 2016, to assess the car's value. The valuation details were as follows:

An advertisement on 12.01.2023 in Financial Express and Nava Telangana newspaper announced the Vehicle auction Sale Notice.^{11.Pg 5-6 of the Application.} The auction, held on 19.01.2023, two bidders were participated in the auction, out of which, Mr. Suresh Kumar Reddy emerging as the Successful Bidder, offering Rs.5,06,000/-. The Liquidation Bank Account (SBSPL(UL)) was opened in the State Bank of India, and the auction proceeds were deposited in the same account.

The Liquidator disbursed the proceeds from the Audi Car auction. The Bank Account in the name of SBSPL(UL) was closed after all amounts were disbursed.

Documents from the Insolvency Resolution Professional indicated old dues from debtors as of 31st October 2018. Debtors were contacted for payment, but they denied liability and instead raised claims against the CD.^{22.Pg 8-13 of the Application.}

The CD has no remaining assets. A Stakeholders Consultancy Committee meeting^{33.Pg 14-16 of the Appliation.} convened on 28.04.2023, with attendees including Sanjay Kumar Sharda (Liquidator), Mr. Ramkrishna (Representative of Bank of Baroda - Financial Creditor), Mr. Harinath (Representative of Bank of Baroda - Financial Creditor), and Mr. Rajeev Nandan Rai (Representative of Employee State Insurance Corporation - Operational Creditor). The Liquidator presented the CD’s status, and all members concurred on the company's dissolution due to the absence of assets.

The Liquidator is submitting the Compliance Certificate^{44.Pg 17-21 of the Application.} in the form of Form H and the Final Accounts^{55.Pg 7 of the Application.} related to the proceeds' disbursement for the Company's dissolution.

Given the aforementioned facts, the Liquidator requests the Tribunal to order the dissolution of the Corporate Debtor Company.

We have perused the contents of the Application and heard the Counsel appearing for the Liquidator.

At the outset, it may be stated that Section 54 of the IBC lays down the criteria for dissolution of the Corporate Debtor.

Regulation 45 of Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016 reads as under:-

We are satisfied that the criteria laid down under law has been fully complied with. As such, the Corporate Debtor is liable to be dissolved. Hence, we hereby order dissolution of the Corporate Debtor as under:-

a. The Corporate Debtor M/s. Smartec Systems Private Limited stands dissolved from the date of this Order, in terms of Section 54(2) of IBC, 2016, and the Liquidator stands relieved.

b. The Liquidator is directed to send the copy of this Order within 7 days from the date of pronouncement to the Registrar of Companies, Hyderabad.

c. Upon dissolution of the Corporate Debtor, the records of the Company which are in possession of the Liquidator, be handed over by the Liquidator to the IBBI.

d. The Registry is also directed to communicate this order to the Registrar of Companies, Hyderabad for updating the master data.

e. A copy of this order be also forwarded to the Insolvency & Bankruptcy Board of India, New Delhi.

f. In terms of the above, IA No.1032 of 2023 in IA No.198 of 2021 filed by the Liquidator appointed for M/s. Smartec Systems Private Limited (Corporate Debtor) for dissolution of the Company under Section 54(2) of IBC, 2016 stands disposed of accordingly. Since the Corporate Debtor stood dissolved vide this order and no proceedings are now pending, therefore, the Registry is directed to consign the file to records.