Corporate debtors can be dissolved under the Insolvency and Bankruptcy Code once assets are fully liquidated, provided due compliance with regulations is demonstrated.

ORDER

1 . This application bearing I.A. No. 217/2023 in CP(IB) 504/ALD/2019 has been filed for dissolution of Corporate Debtor under Section 54 of the Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as IBC) praying for the following reliefs:

i. Allow the present Application and dissolve the Corporate Debtor, i.e., Shree Basant Oils Limited under Section 54 of the Insolvency and Bankruptcy Code, 2016 ;

ii. Consequentially, discharge the Applicant, i.e., Mr. Manish Agarwal as the Liquidator of the Corporate Debtor;

iii. Direct the Registrar of Companies to take necessary action in respect of dissolved company as per law; and

iv. Kindly, pass an order extending the liquidation period by 5 months w.e.f. 14.12.2022; Alternative;

v. Kindly, pass an order condoning the delay of 5 months in completion of the liquidation process of the Corporate Debtor;

vi. Pass such other further order/order(s) as may be deemed fit and proper in the facts and circumstances of the case.

2. To put it briefly, the facts of the case are that the Application under section 9 of IBC for initiating CIRP was admitted by this Adjudicating Authority vide order dated 16.01.2020 and Mr. KK Agarwal was appointed as IRP. Later, Mr. Aditya Agarwal replaced Mr. KK Agarwal as RP vide order dated 12.06.2020.

3. Applicant submitted that the CoC in its 10th meeting held on 13.01.2021 unanimously (with 100% vote share) resolved that Corporate Debtor should be liquidated in accordance with the provisions of the IBC-2016.

4. Applicant further submitted that on the decision of CoC, an application for liquidation of Corporate Debtor was filed before this tribunal and this Adjudicating Authority passed an order u/s 33 (2) to liquidate the Corporate debtor on 14.12.2021 and Mr. Manish Agarwal was appointed as Liquidator.

5. Applicant submitted that pursuant to liquidation, public announcement in two newspapers namely, Business Standard (English) and Amar Ujala (Hindi), was issued on 25.12.2021 for invitation of claims.

6. The specified deadline for submitting claims, as mentioned in the public announcement, was 15.01.2022. Additionally, a copy of the public announcement was uploaded on the Insolvency and Bankruptcy Board of India’s website on 27.12.2021.

7. On 22.12.2021, the Applicant notified the Registrar of Companies in Kanpur, Uttar Pradesh via email about the commencement of Liquidation Proceedings against the Corporate Debtor. The Applicant submitted that the Registrar of Companies, Kanpur subsequently modified the status of the Corporate Debtor from being under Corporate Insolvency Resolution Process to being under Liquidation.

8. The Applicant submitted that in adherence to Regulation 41(1) of the Liquidation Regulations, 2016, he opened the liquidation account for the Corporate Debtor to collect all funds owed to it. The particulars of the liquidation account are outlined below:

i. Account Name: Shree basant Oils Limited

ii. In Liquidation Account Number: 120000897967

iii. Bank: Canara Bank

iv. Branch: SSI, Jail Chungi, Meerut - 250001

9. The Applicant further submitted that in accordance with Regulation 15(2), (3), (4), and (5) of the Liquidation Regulations, 2016, the Applicant undertook measures to engage professionals for conducting a valuation of the Corporate Debtor’s assets. This valuation aimed to determine both the fair value and liquidation value of the Corporate Debtor.

10. The Applicant submitted that in accordance with the official announcement, he collected claims from multiple creditors of the Corporate Debtor uptil the final submission date. After the verification of the claims, the Stakeholder Consultation Committee of the Corporate Debtor was