Allowed

In the matter of India Techs Limited IA(IBC)-293-KOB-2022 in IA(IBC)-18-KOB-2022 in TIBA-14-KOB-2019

NCLT8 Feb 2023

Case brief

AI extract

What is this about?

The NCLT Kochi Bench allowed an application for the dissolution of India Techs Limited. The Liquidator reported that all assets had been sold via e-auction and proceeds distributed. With no realizable assets remaining to liquidate, the Tribunal declared the Corporate Debtor dissolved and directed registration of the order with the ROC.

What did the court decide?

Corporate Debtor dissolved from the date of this order; order forwarded to Registrar of Companies; pending proceedings assigned per SCC resolution.

In the matter of India Techs Limited… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL KOCHI BENCH KOCHI

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IA(IBC)/293/KOB/2022 IN IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019

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(Under section 54 of IBC, 2016 and regulation 45(3)(b) of IBBI (Liquidation Process) Regulations, 2016)

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In the matter of:

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Capedge Consulting Private Limited v/s India Techs Limited;

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MEMO OF PARTIES:

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SASITHARAN RAMASWAMY, Liquidator of India Techs Limited, TC 55/33, Sarayu, Chirakkara Temple Road, Kaimanam, Pappanamcode PO, Thiruvananthapuram 695018.

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…Applicant

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Coram:

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Shri P. Mohan Raj : Member (Judicial Shri Satya Ranjan Prasad : Member (Technical)

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Appearances (through video conferencing)

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For Applicant : Mr. Sasitharan Ramaswamy, (Liquidator in person) For Suspended Board : Sharad Kodianthara, Advocate Order reserved on: 07.12.2022 Order pronounced on: 08.02.2023

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IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019 In re Capedge Consulting Private Limited v/s India Techs Limited

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O R D E R

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This IA has been filed by the Liquidator of India Techs Limited, the Corporate Debtor (CD) seeking following reliefs: -

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i. Pass an order under Section 54 of IBC 2016, read with Regulation 45 of IBBI (Liquidation Process) Regulations. 2016 for dissolution of the Corporate Debtor, India Techs Limited;

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ii. Pass an order authorising Central Bank of India and IndusInd Bank Limited to pursue the proceedings in respect of preferential, undervalued, or fraudulent transactions decreed by this Hon‘ble Tribunal in MA/203/KOB/202I and MA/204/KOB/2021 and also before the Appellate Tribunal and Courts and to distribute the proceeds, if any, realized from said transactions to the Secured Creditors in proportion to the remaining balance of their admitted claims.

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The brief facts of the case are: -

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The Corporate Debtor was admitted to Corporate Insolvency Resolution Process vide order dated 25.10.2019 in Section 9 application by operational creditor , M/s. Capedge Consulting Private Limited and the applicant was then appointed as the RP by the COC. Subsequently, as no resolution plan was received, the CD was admitted to Liquidation vide order dated 05.03.2021. The erstwhile RP was then appointed as the liquidator who carried out public announcement on 16.03.2021 for claims. Accordingly, following claims were received: -

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IN THE NATIONAL COMPANY LAW TRIBUNAL KOCHI BENCH

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IA(IBC)/293/KOB/2022 IN IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019 In re Capedge Consulting Private Limited v/s India Techs Limited

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To summarise a total of 11 claims were received including 2 from related parties and no claim from statutory authorities.

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The stakeholder’s committee was formed in manner below, was taken into record of this Tribunal on 21.06.2021:

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Liquidator has held 8 SCC meetings, the minutes of which has been filed with this Tribunal. The liquidator formed the liquidation estate and has filed 7 quarterly reports and his final report dated 07.10.2022.

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It is further submitted that due to an impediment of attachment in an OA proceeding by DRT on assets of CD, and the lockdown imposed due to covid lockdown, the liquidation period was extended along with exclusions till 09.10.2022.

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IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019 In re Capedge Consulting Private Limited v/s India Techs Limited

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The Liquidator states that the CD has 3 block of realisable asset which is as under

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These assets were valued by IBBI registered valuers and the details as per asset memorandum is as below:

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Liquidator in consultation with SCC fixed reserve prices accordingly and 3 e- auctions were made and the asset sale report has been filed with the Tribunal. The amounts realised were:

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IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019 In re Capedge Consulting Private Limited v/s India Techs Limited

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Block 1 Rs.	466 Lakh
Block 2 Rs.	131 Lakh
Block 3 Rs.	0.41 Lakh
Total Rs.	597.41 Lakh

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Out of above, an amount of Rs. 541.98 Lakh was distributed as follows:

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Further, the entire CIRP Cost amounting to Rs.24,52,578.98 was reimbursed to operational creditor, financial creditor and RP on 24.04.2022. Further, as there were no liquid assets of CD to meet the expenses, the liquidation cost was reimbursed with interest @ 4.25% under the provision of IBC as follows:

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The entire fees of the liquidator as fixed by COC in its 10^th meeting and as per schedule of fees under IBBI liquidation regulations amounting to Rs.23,06,640/- and GST was also paid.

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It is further stated that as on date of CIRP, the accounts were only available up to 31.03.2015 and the applicant had engaged Chartered Accountant to complete the financials up to 31.03.2020 and conduct audit. The audited financials were filed with the ROC as per IBBI guidelines. It is stated that following assets appeared in latest balance sheet which have been found non

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realisable and contingent and disputed as on date of this application by the liquidator and the COC.

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IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019 In re Capedge Consulting Private Limited v/s India Techs Limited

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It is stated that the advance income tax amount and Sales Tax deposit appearing above as asset are disputed by the Income tax department and the sales tax department to which an appeal has been pending before the competent authority and has been stated as a contingent liability.

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It is therefore stated that all realisable assets have been sold by e-auction and the entire sale proceeds have been distributed according to section 53 of IBC,2016. Copy of Cash flow statement on liquidation along with liquidation bank statement is furnished by the applicant.

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The learned liquidator further stated that there were misstatements of actual stock balances based on physical verification and a forensic audit was conducted wherein following transactions were revealed: -

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Subsequently, this Tribunal vide order dated 23.04.2021 ordered to claw back preferential and undervalued transactions amounting to Rs. 393.56 lakh and 967.33 lakh amount in fraudulent transaction. This order is under appeal before Honourable NCLAT, Chennai.

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It is stated that the liquidation period has ended and the stakeholders have resolved in its 8^th SCC meeting to contest the proceedings before NCLAT

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IA(IBC)/293/KOB/2022 IN IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019 In re Capedge Consulting Private Limited v/s India Techs Limited

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regarding preferential, undervalued and fraudulent transactions. Thus, in terms of regulation 37A and 31A of the IBBI Liquidation regulation, the liquidator has assigned the not readily realisable assets to the 2 secured creditors. The resolution as passed is produced below:

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Heard submissions and perused documents on record. In light of the facts stated, it is noticed that the Corporate Debtor does not have assets to be liquidated and hence this Application is moved for the Dissolution of the Corporate Debtor. It is also seen that the liquidator has submitted his final report on CD along with the application detailing all the relevant facts. The assignment of the pending proceedings before NCLAT and its outcomes has also been effected by the liquidator through the resolution passed at the 8th SCC meeting. The suspended management was also represented by learned counsel, who stated his no objection to this application.

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IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019 In re Capedge Consulting Private Limited v/s India Techs Limited

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Now, for the purpose of pronouncement of Dissolution of a Corporate Debtor, Section 54 of The Insolvency and Bankruptcy Code, 2016 reads as under:-

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“ 54. (1) 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.

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(2) The Adjudicating Authority shall on application filed by the liquidator under subsection (1) order that the corporate debtor shall be dissolved from the date of that order and the corporate debtor shall be dissolved accordingly.

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(3) A copy of an order under sub-section (2) shall within seven days from the date of such order, be forwarded to the authority with which the corporate debtor is registered.”

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As a consequence, in view of above, it is hereby declared that not only it is just and equitable but because of the fact that no asset is available for the purpose of ‘Liquidation’ as reported by Learned Liquidator, this is a fit case of a Corporate Debtor to be dissolved as prescribed under Section 54 of The Insolvency and Bankruptcy Code, 2016. Ordered accordingly. The Corporate Debtor stands ‘ Dissolved’ from the date of this Order.

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Since, the Debtor Company stands Dissolved vide this order, the legal proceedings which are now pending before Hon’ble NCLAT shall be carried out in the manner set forth as per the resolution passed by the SCC at its 8^th meeting filed with this Tribunal.

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Copy of this Order shall be forwarded within 7 (seven) days to the concerned authorities and the Registrar of Companies having jurisdiction, for further necessary action as prescribed under Law.

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Application is, therefore ALLOWED. Accordingly, TIBA 14/KOB/2019, is hereby disposed of.

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IN THE NATIONAL COMPANY LAW TRIBUNAL KOCHI BENCH

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IA(IBC)/293/KOB/2022 IN IA(IBC)/18/KOB/2022 IN TIBA/14/KOB/2019 In re Capedge Consulting Private Limited v/s India Techs Limited

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The Registry is hereby directed to send e-mail copies of the order forthwith to all the parties and their counsel for information and for taking necessary steps.

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Let the certified copy of the order be issued upon compliance with requisite formalities.

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File be consigned to records.

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SATYARANJAN PRASAD Digitally signed by SATYARANJAN PRASAD Date: 2023.02.08 15:53:22 +05'30' PANDIAN MOHAN RAJ Digitally signed by PANDIAN MOHAN RAJ Date: 2023.02.08 14:46:52 +05'30' Satya Ranjan Prasad P. Mohan Raj Member (Technical) Member (Judicial)

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Signed on this 08^th day of February, 2023.

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Rohit

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In the matter of India Techs Limited IA(IBC)-293-KOB-2022 in IA(IBC)-18-KOB-2022 in TIBA-14-KOB-2019

Case brief

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In the matter of India Techs Limited IA(IBC)-293-KOB-2022 in IA(IBC)-18-KOB-2022 in TIBA-14-KOB-2019

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