In the matter of Weexcel Technologies Pvt. Ltd. [IA(IBC)1257(KB)2023 in CP(IB)-10(KB)2019]

NCLT10 Oct 2023IA(IBC)1257(KB)2023 in CP(IB)-10(KB)2019

Case brief

AI extract

What is this about?

For clarification order on an application for early dissolution. The court noted missing closure of the liquidation account, pending settlement talks, and unset off CIRP and liquidation costs before adjourning for response.

What the court decided

AI extract

In the matter of Weexcel Technologies Pvt. Ltd… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH, (Court – II) KOLKATA

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IA(IBC)1257(KB)2023

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CP(IB)/10(KB)2019

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An application under section 54 of the Insolvency and Bankruptcy Code, 2016 read with regulation 14 of the IBBI (Liquidation Process) Regulations, 2016

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In the matter of:

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Syscraft Solutions Private Limited;

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…Operational Creditor

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-Versus-

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We Excel Technologies Pvt. Ltd. ( CIN: U72200WB2012PTC184126 );

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…Corporate Debtor

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Represented by its Liquidator –

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Mr. Pankaj Kumar Kedia, …. Applicant/Liquidator Date of Hearing: 21/09/2023

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Coram:

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Smt. Bidisha Banerjee : Member (Judicial) Shri Arvind Devanathan : Member (Technical) Appearances through hybrid mode: For the Applicant : Mr. Udit Agarwal, Adv. Mr. Pankaj Kumar Kedia, Liq. in person

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F O R C L A R I F I C A T I O N

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IA(IBC)/1257(KB)2023 has been filed by the Liquidator under section 54 of the Insolvency and Bankruptcy Code, 2016 read with regulation 14 of IBBI (Liquidation Process) Regulations, 2016 praying for early dissolution of the Corporate Debtor as well as direction upon Syscraft Solutions Pvt. Ltd., sole member of Stakeholders Consultation Committee, who is also the petitioning Operational Creditor, to pay the CIRP and Liquidation cost payable to the Resolution Professional and the Liquidator .

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While going through the application following points were observed, which need clarification: -

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Page 1 of 2

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IN THE NATIONAL COMPANY LAW TRIBUNAL SPECIAL BENCH, (Court – II) KOLKATA

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IA(IBC)1257(KB)2023 In CP(IB)/10(KB)2019

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(i) Though the applicant has annexed audited statement of account with respect to liquidation period but Original Bank Statement showing receipt and payment with regard to Liquidation Account from the date of opening to date of closure of the said Liquidation Account opened in the name of the Corporate Debtor along with a certificate from the Bank that the account has been closed after the balance become “zero” has not been annexed. Further, in the Final Report it is stated that “Liquidation Bank Account with YES Bank is in the process of being closed”. How without closure of liquidation account dissolution could be possible?

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(ii) Out of 4 SCC meetings called only 1^st and 2^nd meetings were held and the 3^rd and 4^th meetings could not be held due to lack of Coram. Also SCC has not taken any decision regarding dissolution rather at the 2^nd SCC meeting held on 22/03/2023, it was stated that “talks of settlement is in process”.

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(iii) Out of Liquidation cost of Rs.2,80,468/- only Rs.75,303.01 has been set off and the balance amount is due and payable to the Liquidator whereas CIRP cost to the tune of Rs.3,57,600/- is due and payable. In the event of closure of Liquidation Account, which is mandatory for dissolution of the Corporate Debtor, how the aforesaid amount of CIRP and Liquidation Cost could be set off.

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Therefore, issue notice to the Liquidator and the member(s) of Stakeholder Consultation Committee to be present on the next date personally or through their Advocate to answer the above points.

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