The Adjudicating Authority may order the dissolution of a corporate debtor under Section 54 of the IBC, 2016, once the liquidation process is completed, assets are realized, and the liquidator demonstrates compliance with the Code and transparency in claim and transaction management.

ORDER

PER: BACHU VENKAT BALARAM DAS, MEMBER (JUDICIAL)

1. This Application has been filed by Mr. Mohan Lal Jain, the Liquidator of Vidharva Trading Private Limited, before this Adjudicating Authority under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 45 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The Applicant seeks the following reliefs:

“a. Allow the present Application

b. Pass an Order for the dissolution of the Corporate Debtor, i.e., M/s Vidharva Trading Private Limited under Section 54 of the Insolvency and Bankruptcy Code, 2016;

C. Pass an Order for the extinguishment of all the liabilities of Vidharva Trading Private Limited;

d. Consequentially, discharge the Applicant, i.e., Mr. Mohan Lal Jain from the duties of Liquidator of the Corporate Debtor;

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

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

2. Brief Background of the Case

i. An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") was filed by the Operational Creditor, i.e., Montage Enterprises Private Limited against the Corporate Debtor, Vidharva Trading Private Limited and the said application was admitted by the order of this Adjudicating Authority vide order dated 23.12.2022 and a moratorium was declared under Section 14 including the appointment of Mr. Mohan Lal Jain as an Interim Resolution Professional. Subsequently, his appointment was confirmed as Resolution Professional by this Adjudicating Authority vide order dated 17.02.2023.

ii. Thereafter, Mr. Mohan Lal Jain, the Resolution Professional, filed an Application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 ("IBC") for seeking Liquidation of the Corporate Debtor. This Adjudicating Authority vide order dated 30.05.2023 allowed the Application filed under Section 33(2) of IBC and a moratorium was declared under Section 33(5) including the appointment of Mr. Mohan Lal Jain as the Liquidator of the Corporate Debtor.

3. It is the case of the Applicant that pursuant to the appointment of the Applicant as the Liquidator, in compliance of Section 33(b)(ii) of the Code read with Regulation 12 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, a Public Announcement in Form B of Schedule II was made on 03.06.2023, calling upon all the stakeholders to submit their claims with the Applicant on or before 29.06.2023, in Financial Express (English) - All Edition, Jansatta (Hindi) - All India Edition and Financial Express (Gujarati)- Gujarati Edition. In terms of Regulation 30 of Liquidation Regulations, the liquidator is to verify claims submitted within thirty days from last date for receipt of claims and to either admit or reject the claim, in whole or in part, as the case may be.

4. It is submitted that the Applicant had intimated the Registrar of Companies ("ROC"), NCT of Delhi & Haryana about the initiation of Liquidation Proceedings of Corporate Debtor by filing e-form INC-28. As there were no workmen/employees in the Corporate Debtor, no notice of discharge as required under Section 33(7) of the Code was required to be issued.

5. As per the Form-B published by the Applicant for receiving claims from the creditors of the Corpora