M/s. Bhareth Formulations Private Limited Vs

S. Ramathilagam, Member (Judicial)

This IA/767(CHE)/2021 has been filed by the Applicant under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016 seeking the following reliefs:

a)  pass  an  order dissolving  the  Company  in  Liquidation -M/s. Bhareth Formulations Private Limited as per section 54 of the Insolvency and Bankruptcy Code, 2016;

b) pass such other order/directions as this Hon'ble Bench may deem fit and proper in the facts and circumstances of the case and thus render Justice.

It is averred in the Application that M/s. Bhareth Formulations Private Limited (hereinafter the "Corporate Debtor") was admitted  into  CIRP by this Tribunal,  vide Order dated 20.03.2019 in CP/1174(IB)/2018. It is further averred that despite pendency of a Miscellaneous Application under section 66 & 67 of the Insolvency and Bankruptcy Code, 2016 filed in MA/101.0/2019 in CP/1174/(IB)/2018 against the  Promoter of the Corporate Debtor along with four other Respondents, the application in IA/505/2019 filed by the Resolution  Professional for liquidation of the Corporate Debtor under section 33(2) of IBC, 2016 was allowed vide order  dated 05.08.2020 appointing the  Applicant herein as the Liquidator.

It is submitted that as required  under Regulation 12 of the IBBI (Liquidation  Process)  Regulations, 2016 the  Public Announcement  was made in Form B  on 07.08.2020 in Indian Express and Dinamalar.

Subsequently, the applicant  has  received claim  from one financial Creditor, the Bank  of  India to the tune  of  Rs. 30,16,06,746.07/- (Thirty Crore Sixteen Lakh Six Thousand Seven Hundred  Forty Six and Seven Paisa Only, the said claim  received was duly verified and admitted as per Regulation 30 and the list of stakeholders as per Regulation 31 of the IBBI (Liquidation Process) Regulations,  2016  was  submitted by  this  Applicant  before  this Tribunal.

The details of Claims submitted and claim admitted are given as under:

S.No.

Details of Stakeholders

Amount Claimed   (in Rs.)

Amount Claim Admitted (in Rs.)

Nature of creditor

1

Bank of India

30,16,06,746.07

30,16,06,746.07

Secured

Total

30,16,06,746.07

30,16,06,746.07

It is further averred that the Corporate Debtor did not  have any assets, except the contingent assets which may be ordered to be paid by the Promoter of the Corporate Debtor to the extent of Rs. 1,54,73,430/-(One Crore Fifty Four Lakh Seventy Three Thousand  Four Hundred and Thirty  Rupees Only). It is also submitted  by  the  Applicant  that,  the  Creditors  had  relinquished their right over the  property only  late  i.e.  on 16.01.2020  as  per Section 52(1)(a) of the IBC, 2016.

The Applicant has submitted Form H along with the typed set of application in which it is stated that The Preliminary Report and the Asset Memorandum was submitted on 19.10.2020 and that no public  announcement  for  auction was made as  there  were no assets to auction. The same also shows that as the Company was non functional  since  December 2015 as claimed  by the erstwhile Promoter and no books of accounts were made available either to the IRP or the Liquidator, and that the last filed Balance Sheet was  on 31.03.2014  no  intimations  have  been  sent  to  any  statutory authorities as  it  is  Not Applicable  in  the circumstances as stated herein.

The Applicant/Liquidator stated that during the time of filing of the  Second  Progress  Report  it was  brought to  her  knowle4e that  the Promoter  against  whom the  Section 66  &  Section 7 Application bearing number MA/1010/2019 h ad expired 23.05.2021. A Memo stating this has been filed with the Regist ar of NCLT Chennai on 16.06.2021.

The Applicant has  further  submitted that  all the Repo ts required  to  be  filed  under  Regulation 5  of the  IBBI  (Liquidati  n Process) Regulation, 2016 has been filed. The details of the sa can  be seen  in the Form  H filed  by the Liquidator along with the typed set of Application.

The  final Report  is  accompanied with the  complia6ce certificate in  the prescribed Form H which has  been  submitted along with the typed set of Application as per Regulation 45(3) of the IBBI (Liquidation Process) Regulations, 2016.

From the averments made in the Application along with  he perusal  of the final  report and the  Compliance cfertificate filed  in Form-H by the Applicant, it is seen that the Corprate Debtor  as been  completely  liquidated  and  in  the  circumstances  as  averred  and as prayed for by the Applicant that an order for dissolut on is required to be passed by this Adjudicating Authority under Section 54 of the IBC, 2016.

Accordingly, we hereby order for the dissolution o  the Corporate Debtor viz., M/s. Bhareth Formulations Pvt. Ltd. and the Liquidator is directed to forward a copy of this Order to th RoC concerned and also to the IBBI for its records within a perios  of 7 days from  the date of this Order. Accordingly,  IA/767(CHE)  2021 stands Allowed.