In the matter of KN Interior Designs And Engineering Private Limited

IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH (COURT– I) CHENNAI ATTENDANCE CUM ORDER SHEET OF THE HEARING HELD ON 08.08.2024 THROUGH VIDEO CONFERENCING PRESENT: HON’BLE SHRI. SANJIV JAIN, MEMBER (JUDICIAL) HON’BLE SHRI. VENKATARAMAN SUBRAMANIAM, MEMBER (TECHNICAL) IN THE MATTER OF : K N Interior Designs and Engineering Pvt Ltd MAIN PETITION NUMBER : CP(IB)/87(CHE)/2021 (IA/MA) APPLICATION NUMBERS IA/1382(CHE)/2023 ORDER Present: Ld. Counsel Shri. Bathrinarayan for the Applicant / Liquidator. Vide separate order pronounced in Open Court, the company K N Interior Designs and Engineering Pvt Ltd is dissolved. File be consigned to records.

Sd/- Sd/- (VENKATARAMAN SUBRAMANIAM) (SANJIV JAIN) MEMBER (TECHNICAL) MEMBER (JUDICIAL) MG

IN THE NATIONAL COMPANY LAW TRIBUNAL, DIVISION BENCH – I, CHENNAI IA (IBC)/1382 (CHE)/2023 in CP/IB/87/2021 (Filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016) In the matter of KN Interior Designs and Engineering Private Limited M.Murugesan Liquidator of KN Interior Designs and Engineering Private Limited New No.41, Old No. 17, 16th Avenue, Ashok Nagar, Chennai – 600 083 … Applicant

Order Pronounced on 08thAugust 2024 CORAM SANJIV JAIN, MEMBER (JUDICIAL) VENKATARAMAN SUBRAMANIAM, MEMBER (TECHNICAL) For Applicant: S.Sathiyanarayanan, Advocate

(Hearing Conducted through Hybrid Mode)

This Application has been filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016 by the liquidator of the Corporate Debtor herein seeking for Dissolution of the Corporate Debtor viz., K N INTERIOR DESIGNS AND ENGINEERING

PRIVATE LIMITED.

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

BRIEF FACTS:

2. On an Application filed by Corporate Applicant under Section 10 of IBC, 2016, this Tribunal vide order dated 03.12.2021 initiated

Corporate Insolvency Resolution Process (CIRP) against the Corporate

Debtor viz. KN Interior Designs and Engineering Private Limited.

3. The Liquidation of the Corporate Debtor was ordered by this Tribunal on 19.09.2022 in IA/699/CHE/2022 and the Applicant herein was appointed as the Liquidator.

4. In compliance with Section 33 (1) (b) (ii) / Regulation 12 (1, 2, 3), paper advertisement in Form B of Schedule II of Liquidation Process

Regulations was given by the Liquidator in The Times of India (English)

and Malai Malar (Tamil) dated 24.09.2022. The paper publication was also uploaded in IBBI web website. The Corporate Debtor was not having any website. In response to the paper advertisement, the liquidator received 22 claims and the details are:

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

5. The Liquidation Bank Account in the name of K N Interior

Designs and Engineering Private Limited in Liquidation bearing

Account No.801020110000533 was converted on 23.09.2022 with Bank of India, Adyar Branch.

6. It is stated that the Liquidator, after several attempts and efforts, realized a sum of Rs.22,59,290.78 from the sundry debtors of the Corporate Debtor. The amount realized was distributed to the stakeholders of the Corporate Debtor in accordance with Section 53 of the Code after providing for the liquidation cost incurred by the Applicant.

7. It is stated that the Corporate Debtor, in liquidation, has no business, and no assets except some receivables (mostly doubtful) from sundry debtors. In the SCC Meeting held on 30.05.2023, the Stakeholders, after considering the bleak prospects of further recovery for the doubtful trade receivables due to quality and other issues, have decided that it is not worthwhile to pursue recovery of the receivables.

Further, the SCC decided to move an Application for dissolution of the Corporate Debtor. For the dissolution resolution, out of 5 SCC members,

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

2 members viz. ESI & One Operational Creditor abstained from voting;

and the other members at the meeting unanimously voted in favour of filing an application for dissolution of the Corporate Debtor.

8. It is stated that since the Corporate Debtor had no assets other than some doubtful sundry debtors, the requirement to appoint

Registered Valuers under the IBBI (Liquidation Process) Regulations,

2016 did not arise.

9. It is stated that as on the date of filing the application, the following applications relating to the Corporate Debtor were pending before the Tribunal:

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

10. The details of the relevant compliances as mandated under

Section 54 of the IBC, 2016 read with the IBBI (Liquidation Process)

Regulations, 2016 are hereunder:-

S. COMPLIANCE AVERMENTS PAGE NO. IN THE NO APPLICATION Public Announcement in Form B in The 1 Regulation 12 Times of India and Malai Malar dated 26-27 24.09.2022 Para 9 of the Appointment of Registered Valuers where 2 Regulation 35(2) application at Page no valuation conducted during CIRP No. 5 List of Stakeholders within 45 days of the 3 Regulation 31(2) 39-43 Liquidation Commencement Date Constitution of Stakeholders Consultation 4 Regulation 31A 97 Committee (SCC) 5 Regulation 13 Preliminary Report dated 09.11.2022 30-35 Preparation of Asset Memorandum within 6 Regulation 34 Seventy-Five days from LCD dated 36-38 11.11.2022 Opening of Bank Account in the name of Serial No.15 at Page 7 Regulation 41 the company in Liquidation in “Bank of No.97 India” Proof of Closure of the above Bank 8 Account and other account in the name of 90 the Company

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

Para 12 of the Quarterly Progress Reports and proof of 9 Regulation 15 Application and filing the same before this Tribunal Page Nos.6 10 Regulation 36 Asset Sale Reports after sale of Reports N/A Proof of Distribution within Ninety days Serial No.16 at Page 11 Regulation 42(2) from the receipt of realization No.102 Page Nos.44-88 and 12 Regulation 45 (3) Final report dated 21.06.2023 97-106 13 Regulation 5 (1) (e) Compilation of Minutes of SCC 67-73 Audited Accounts of receipts and 14 Regulation 15 91-96 Payments Completion of Liquidation Process within one year from Liquidation 15 Regulation 37 17-26 Commencement Date or extension if any, date of the order & period 16 Form-H –Compliance Certificate 97-106

11. We have heard Ld. Counsel for the Applicant and perused the report and synopsis filed by the Liquidator.

12. It is stated in Form H that IA/IBC/387/CHE/2023 and Cont.Appl/3(CHE)/2023 are pending before this Tribunal for avoidance,

Preferential, Undervalued or Fraudulent Transactions. However, it is seen from the records that the above two applications i.e.

IA/IBC/387/CHE/2023 and Cont.Appl/3(CHE)/2023 have been disposed of by this Tribunal vide order dated 19.07.2024 and 06.06.2024 respectively. Hence, there are no applications pending relating to the Corporate Debtor.

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

13. The liquidator has filed the synopsis showing the realization and the distribution which are reproduced as under:

Realization:

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

Distribution:

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

14. From the averments made in the Application and on a perusal of final report and the Compliance Certificate filed in Form-H, it is seen that the Corporate Debtor has been completely liquidated. In the circumstances as averred and as prayed for by the Applicant, an order for dissolution is required to be passed by this Tribunal under Section

54 of the IBC, 2016. Accordingly, we order for the dissolution of the Corporate Debtor viz., K N INTERIOR DESIGNS AND ENGINEERING

PRIVATE LIMITED. The Liquidator is directed to forward the copy of this Order to the RoC concerned and also to the IBBI for its records within a period of 7 days from the date of this Order.

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited

15. In terms of the above, this IA/(IBC)/1382/CHE/2023 stands allowed and CP/IB/87/CHE/2021 also stands disposed of.

16. File be consigned to records.

-Sd- -Sd- VENKATARAMAN SUBRAMANIAM SANJIV JAIN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

SriramAnanth.V

IA(IBC)/1382/CHE/2023 in CP/IB/87/2021 In the matter of KN Interior Designs and Engineering Private Limited