M/s Serwel Electronics Private Limited Vs

1) The Present Application bearing IA No.121/2022 in CP (TB)o.9/HDB/2019 is filed  by  the  Liquidator seeking following prayers:-

a.  To issue an order under the Powers vested with this Honble  Tribunal under Section 54(1) of the Insolvency and Bankruptcy code, 2016 for dissolution of the Corporate Debtor Company.

b.  Dispose the pending interlocutory applications IA No.894 of 2020 & IA No.661 of 2021 mentioned in the application pending disposal of the present Dissolution Application.

2)  Brief facts of the present case as stated by the learned counsel for the Applicant are as follows:-

a)  That   this  Adjudicating  Authority  vide   its  order  dated 07.01.2020,  admitted the  Application  filed  by M/ s.  Deccan Switchgears (Operational Creditor) under section 9 of the IBC, 2016, for initiation of CIRP against the Corporate Debtor (M/s. Serwel Electronics Private Limited) and appointed Mr. Pavan Kankani as Interim Resolution Professional (IRP). Later he was confirmed as Resolution Professional (RP) by CoC in their first CoC.  Thereafter,  due  to  completion  of maximumperiod permitted for completion of CIRP this Adjudicating Authority ordered for liquidation basing on the application filed by the applicant herein.

b)  That after his appointment as Liquidator, the applicant carried out paper publication under Regulation 12 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.  The Sole Secured Financial Creditor had submitted its claim before the last date of receipt of claims and in that claim form they mentioned that, they are not ready to relinquish the security interest in favour of the Liquidation Estate and hence the said assets are not covered in the Asset Memorandum filed preliminary Report. Other than the assets securitized with the sola secured financial creditor there is no asset available with the corporate debtor.

c) That the books of accounts of the Corporate Debtor available with the applicant herein is updated only up to the year 2017 and thereafter the applicant made several requests to the sole secured   financial   creditor   to   release   the   amount   for appointment of professional for auditing and accounting the books, however, the creditor has not taken any decision against the said proposals and hence the books of accounts were not updated.  Thus,   there are no physical assets in the corporate debtor  company  and  receivables  appearing  in  the  books  of Corporate Debtor are for the year 2017 and the same is not  updated and there is no clarity on the receivables.

d) That the applicant believes that there is no point to continue the  liquidation  process  of  the  corporate  debtor  due  to  the reason that there are no assets available with corporate debtor to realize and share the proceeds with the stakeholders. That the applicant herein continuing the present assignment only for the  benefit of stakeholders of the corporate debtor and  had intended to share the proceeds out of realization of the assets of the  corporate  debtor with  the  stakeholders,  but  the  sole secured creditor did not relinquish the security interest on the assets of the CD hence there is no point to continue the present liquidation proceedings.

e) That from the date of Liquidation order issued by this Adjudicating Authority the Applicant/Liquidator has complied all   the   provisions  and   regulations   under  Insolvency 86 Bankruptcy  Code,  2016  from  time  to  time  manner. The Applicant  liquidator  filed  his  Preliminary  Report  within  the period specified in statute and the first and final report had alreadyfiled in the form of a Memo.  During the CIRP period one application was field by M/s Servomax Limited IA No. 894 of 2020 for directions to the RP and Sole Secured Financial Creditor  to  register the  property  in  their name  which  was acquired  by  them  under  SARFAESI  from  the  sole  secured Financial Creditor. It is stated that the sale was conducted by the  Secured  Financial  Creditor under  SARFAESI  before initiation of CIRP. Since  Liquidation was ordered  by this Adjudicating Authority and the secured creditor did not relinquish the security interest in liquidation estate the said application is infructuous and hence the same may be disposed.  Since there is nothing to realize in the corporate debtor and the present application is filed under section 54(1) of  IBC, 2016  for  dissolution,  the  said  application  may  be disposed-off.

f)  That under Section 54 of the I as B Code under 'Dissolution of the Corporate Debtor" -

Where the assets of the corporate debtor have been completely liquidated, the  liquidator  shall  make  an  application  to  the Adjudicating Authority for the  dissolution  of such  corporate debtor.

g) Reiterating the above, the Applicant/Liquidator prayed to allow the instant Application as sought for.

3) Heard. Perused record.

4) In  the  instant case,  it is  submitted  that  since  there is nothing recoverable or realizable in the corporate debtor, the applicant is of the opinion that there is no use of  continuing the present proceedings  for  liquidation  of Corporate  Debtor  and  hence  he decided  to  move  the  present  application  for  dissolution  of the Corporate  Debtor  including all transaction and event in liquidation of the corporate  debtor  for its dissolution.

5) It is a fact on record that there are no realizable assets held by the Corporate Debtor so as to form a Liquidation Estate and to distribute the proceeds thereof. The only immovable asset remained with the sole Secured Financial Creditor, who did not relinquish his right in favour  of  the Liquidation  Estate.  Accordingly,  this  Adjudicating Authority in exercise of the powers conferred under Section 54(2) of the I&B Code, 2016, deems  it  proper  to pass  an order  of  the dissolution of the Corporate Debtor.  Thus Corporate Debtor herein i.e., M/s. Serwel Electronics Private Limited stands dissolved from the date of this order. Liquidator also stands relieved.

6) Upon  dissolution, Liquidator  shall  hand  over  the  record  of the Company to IBBI and file confirmation thereof to this Adjudicating Authority.

7) Further, Liquidator is directed to communicate a copy of this order to  the  Authority with  which  the  Corporate  Debtor  is  registered, within 7 days from the date of receipt of copy of this order.

8) It is also seen that the Applications bearing IA No. 661 of 2021 and IA No. 894/2020 have already been disposed by this Adjudicating Authority  vide  orders  dated 24.02.2022  and_12.04.2022 respectively. Hence no orders are required in relation to the same.

9)  With the above, IA No.121/2022 stands disposed of.