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2019 (2) TMI 1886 - Tri - Insolvency and BankruptcyEarly Dissolution of Corporate debtor - Section 54 of the Insolvency Code - Resolution Professional has reported that as per the Balance Sheet of the Debtor Company there was no Asset for Liquidation so as to satisfy the outstanding Debt - HELD THAT:- From section 54, it is noticed that the Corporate Debtor do not have assets to be liquidated hence an Application is moved for the "Dissolution of the Corporate Debtor". This Section is to be read along with Regulation 14 of IBBI (Liquidation Process) Regulations 2016 which says that any time after the preparation of a Preliminary Report if it appears to the Liquidator that the realizable properties of the Corporate Debtor are insufficient to cover the cost of Liquidation process, and the affairs of the Debtor do not require further investigation may apply to NCLT for early dissolution of the Corporate Debtor - it is also worth to refer Section 59, Sub-Section 7 of IBC, although this Section is in respect of Voluntary Liquidation of a Corporate Person, however, according to which where the affairs of the Corporate Person have been completely wound up, and its assets completely liquidated, the Liquidator shall make an Application to Adjudicating Authority for the Dissolution of such Corporate person. Once the affairs of a Company have been completely wound up, the Company Liquidator shall make an Application to the Tribunal for Dissolution of the Company as per Section 303 of the Companies Act, 2013, however, even this Section has not yet been enforced. A procedure is laid down, yet to be make applicable, that a copy of the Dissolution Order shall be forwarded to the Registrar who shall record in the Register of Registration regarding Dissolution of the Company. Although parallel provisions are made in the Insolvency Code as well as in the Companies Act, 2013, but the provisions of the Companies Act have not been notified Through this Order 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 Resolution Professional, this is a fit case of a Corporate Debtor to be dissolved as prescribed u/s. 54 of The Insolvency Code. Ordered accordingly, stood 'Dissolved' from the date of this Order.
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