Liquidation-Dissolution [Sec. 54]

If CIRP having come to an end and liquidation has not been ordered, no further steps are required to be taken by RP, CIRP proceedings may be treated to be closed and Resolution Professional cannot file application for dissolution under Section 54 of IBC | RP can intimate the RoC for striking off the name of Corporate Debtor from the Register of the Companies – Janak Jagjivan Shah RP Rainbow Infrabuild Pvt. Ltd. Vs. CoC of Rainbow Infrabuild Pvt. Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that:

(i) CIRP having been unsuccessful and no liquidation order having been passed, recourse to Section 54 of IBC, could not have been taken by the RP
(ii) When the entity, who has initiated the CIRP is not ready to proceed any further and CIRP period having already come to an end, no further steps were required in the CIRP of the Corporate Debtor and RP could have closed the matter by intimating the Registrar of Companies for striking off the name of Company from the Register of the Companies.
(iii) The CIRP having come to an end and liquidation has not been ordered, no further steps are required to be taken by the RP. The CIRP proceedings may be treated to be closed.

If CIRP having come to an end and liquidation has not been ordered, no further steps are required to be taken by RP, CIRP proceedings may be treated to be closed and Resolution Professional cannot file application for dissolution under Section 54 of IBC | RP can intimate the RoC for striking off the name of Corporate Debtor from the Register of the Companies – Janak Jagjivan Shah RP Rainbow Infrabuild Pvt. Ltd. Vs. CoC of Rainbow Infrabuild Pvt. Ltd. – NCLAT New Delhi Read Post »

Only the Liquidator is empowered to make an application to Adjudicating Authority for the dissolution of a Corporate Debtor – Janak Jagivan Shah RP of Rainbow Infrabuild Pvt. Ltd. – NCLT Ahmedabad Bench

Hon’ble NCLT Ahmedabad Bench held that upon a comprehensive examination of Regulation 14 of the IBBI (Liquidation Process) Regulations and Section 54 of the IBC, this Tribunal observes that “only the Liquidator” is empowered to make an application to the Adjudicating Authority for the dissolution of a Corporate Debtor. As the liquidation process has not yet commenced in this matter, there is no specific provision that authorizes an early dissolution prior to the initiation of liquidation. No order for liquidation has been passed by this Tribunal to date. Consequently, there is no Liquidator or any authorized person in the capacity of the Liquidator who can file the said compliance certificate.

Only the Liquidator is empowered to make an application to Adjudicating Authority for the dissolution of a Corporate Debtor – Janak Jagivan Shah RP of Rainbow Infrabuild Pvt. Ltd. – NCLT Ahmedabad Bench Read Post »

If it would not serve any purpose to keep Corporate Debtor under CIRP proceedings and thereafter under Liquidation proceedings, Adjudicating Authority by exercising its inherent powers conferred under the IBC read with NCLT Rule 11 may allow early/direct dissolution of Corporate Debtor – Ms. Naresh Kumar Munjal RP of Corporate Debtor Vs. Laksh Foods Pvt. Ltd. and Anr. – NCLT New Delhi Bench

Hon’ble NCLT New Delhi Bench referring judgment in Mr. Mandar Wagh, IRP of M/s. Synew Steel Pvt. Ltd. (2020) ibclaw.in 171 NCLT (Bengaluru Bench), Air Pegasus Pvt. Ltd. (2020) ibclaw.in 441 NCLT and Shyson Thomas vs. Mr. Madhugiri Venkatarayappa Sudarshan (2023) ibclaw.in 366 NCLAT held that the ultimate objective of Code is either to resolve the insolvency by way of Resolution Plan or to dissolve the Corporate Debtor, as expeditiously as possible so as to maximize the value of the assets. If the facts and circumstances of a case, justify, that it would not serve any purpose to keep the Corporate Debtor under regular CIRP proceedings, and thereafter under Liquidation proceedings, under the provisions of Code, the Adjudicating Authority, by exercising its inherent powers conferred under the Code read with Rule 11 of the NCLT, Rules, 2016, may pass appropriate order(s) in the interest of speedy justice.

If it would not serve any purpose to keep Corporate Debtor under CIRP proceedings and thereafter under Liquidation proceedings, Adjudicating Authority by exercising its inherent powers conferred under the IBC read with NCLT Rule 11 may allow early/direct dissolution of Corporate Debtor – Ms. Naresh Kumar Munjal RP of Corporate Debtor Vs. Laksh Foods Pvt. Ltd. and Anr. – NCLT New Delhi Bench Read Post »

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