In the matter of Krishna Industrial Corporation Limited

IN THE NATIONAL COMPANY LAW TRIBUNAL, DIVISION BENCH – I, CHENNAI IA (IBC)/(DIS)/4(CHE)/2024 in CP/1053/IB/2018 (Filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 45 of the IBBI (Liquidation Process), Regulations, 2016 and Rule 11 of the NCLT Rules, 2016) In the matter of Krishna Industrial Corporation Limited S.Rajendran, Liquidator of Krishna Industrial Corporation Limited 2nd Floor, Hari Krupa, 71/1, Mc Nicholas Road, Chetpet, Chennai – 600 031 … Applicant

Order Pronounced on 26thApril 2024 CORAM SANJIV JAIN, MEMBER (JUDICIAL) VENKATARAMAN SUBRAMANIAM, MEMBER (TECHNICAL) For Applicant: G. Gautham Ram Vittal, Advocate R.V. Yajura Devi, Advocate

(Hearing Conducted through VC)

This Application has been filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 45 of the IBBI (Liquidation Process) Regulations, 2016 and Rule 11 of the NCLT Rules,

2016 by the liquidator of the Corporate Debtor herein seeking for an order for Dissolution of the Corporate Debtor viz., KRISHNA INDUSTRIAL

CORPORATION LIMITED.

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

2. It is stated that CIRP of the Corporate Debtor was initiated by this Tribunal vide order dated 16.12.2019 and the Applicant herein was appointed as Interim Resolution Professional (IRP) and thereafter as Resolution Professional (RP).

3. It is stated that the Liquidation of the Corporate Debtor was ordered by this Tribunal on 27.07.2020 in MA/376/2020 and the Applicant herein was appointed as the Liquidator.

4. Pursuant to the order of Liquidation, the Applicant caused the Public Announcement on 31.07.2020 in Form –B of Schedule II by inviting claims from all the stakeholders and fixed the last date for submission of claim as 26.08.2020.

5. It is stated that the claims received were verified and the list of stakeholders as on 07.01.2020 was filed within 45 days from the last date for receipt of the claims as per Reg. 31(2) of the IBBI (Liquidation

Process) Regulation 2016, along with the Preliminary Report.

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

6. It is stated that an Application was filed by the Workmen Union of the Corporate Debtor bearing MA/102/(CHE)/2021, the reasons as to why such claims were kept under verification were explained to this Tribunal and on 24.09.2021, this Tribunal directed the Applicant/

Liquidator to consider the claims on or before 16.11.2021.

7. Subsequently, the Applicant/ Liquidator filed I.A/521(CHE)/2023 to modify the "List of Stakeholders" wherein, under specific entries in the List of Other Creditors, List of Operational Creditors - Statutory Dues and List of Financial Creditors" in the List of Stakeholders as on 25.01.2023. This Tribunal has taken the same on record and allowed the same on 08.05.2023.

8. It is stated that the last modified List of Stakeholders dated

02.06.2023 was allowed vide order dated 27.07.2023 in I.A(IBC)/1239(CHE)2023. As per the above said "List of Stakeholders" as on 02.06.2023 the Applicant/Liquidator made the distribution.

9. It is stated that a scheme was given under Section 230 of the Companies Act, 2013. However, it is not fructified and the Liquidator continued the Liquidation Process.

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

10. It is stated that the Liquidator appointed fresh set of Valuers in accordance with Regulation 35 of the IBBI(Liquidation Process)

Regulation 2016, having due consideration with the SCC members during the 5th SCC meeting held on 19.12.2022. The Summary of the Valuation reports is reproduced as under:

11. It is stated that the Liquidator has totally conducted 3 Auctions.

The 3rd Auction was successfully completed on 20.04.2023 and the Liquidator declared the Successful bidders for the category of the assets of the Corporate Debtor as per details given below:

a) The successful bidder for Land & Building was Pattabhi Agro Foods Private Limited with the bid amount of Rs. 19.65 crores. The Sale

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited certificate was issued to them on 05.05.2023. The Land Registration in favour of Pattabhi Agro Foods Private Limited at the Sub-Registrar office, Kovvur was done on 17.05.2023 on the request of the successful bidder. b) The successful bidder for Plant & Machinery was Sravan & Co, Niddadovole for the bid amount of Rs. 1.04 Crores. The sale certificate was issued on 05.05.2023.

12. It is stated that Liquidator had opened a bank account bearing

A/c.No.078411100004368 in the name of "KRISHNA INDUSTRIAL

CORPORATION LIMITED IN LIQUIDATION" for the purpose of Liquidation in Union Bank of India, Chetpet Branch, Chennai, as per

Reg.41 of IBBI (Liquidation Process) Regulations, 2016.

13. It is stated that the said Liquidation Account has NIL balance after payments made to various stakeholders, thus, the Applicant/ Liquidator applied for the closure of the aforesaid Bank Account and the said account was closed vide letter dated 27.11.2023.

14. The details of the closure of other Bank Accounts in the name of the Corporate Debtor is as follows:

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

Note 1: It is submitted that the amount of Rs. 82,855 was lying in the said bank account. Upon instructions to the Bank, the said amount was realized and also distributed as per the provisions of the Code. The said bank was instructed to issue a Closure Certificate, however despite follow-ups, the Closure Certificate has not been issued by the Bank.

Note 2: It is submitted that the said bank account had NIL balance, however despite follow-ups, the Closure Certificate has not been issued by the Bank.

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

Note 3: It is submitted that an amount of Rs. 360 is lying in Indian Bank, Harbour. Chennai in A/c No.: 432441660. Although a request for closure form has been submitted, the said Bank has not issued the closure Certificate.

15. It is stated that Liquidator had opened a Demat account vide

Client.ID: 10570754 in the name of "S. RAJENDRAN LIQUIDATOR OF KRISHNA INDUSTRIAL CORPORATION" with Indbank Merchant

Banking Services Limited to dematerialize the equity shares held by the Corporate Debtor in the physical certificates, same was sold in the stock exchange and distributed as per the Sec. 53 of the Code. Further, the Applicant/ Liquidator applied for the closure of the aforesaid DEMAT

Account and same was closed vide letter dated 13.10.2023.

16. The details of the relevant compliances as mandated under

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

Regulations, 2016 are listed hereunder:-

S. COMPLIANCE AVERMENTS PAGE NO. IN THE NO APPLICATION Public Announcement in Form B 1 Regulation 12 in Business Standard and 61-63 Dinamani dated 31.07.2020

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

Appointment of Registered Page 8, Para 13 Regulation 2 Valuers where no valuation of the 35(2) conducted during CIRP Application List of Stakeholders within 45 Regulation 3 days of the Liquidation 72 31(2) Commencement Date Constitution of Stakeholders 4 Regulation 31A 72 Consultation Committee (SCC) Preliminary Report dated 5 Regulation 13 64-71 07.10.2020 Preparation of Asset 6 Regulation 34 Memorandum within Seventy- 237-238 Five days from LCD Opening of Bank Account in the 7 Regulation 41 name of the company in 218 - 224 Liquidation in “Scheduled Bank” Proof of Closure of the above Bank 8 Account and other account in the 218 - 224 name of the Company Quarterly Progress Reports and 9 Regulation 15 proof of filing the same before this 239-384 Tribunal Asset Sale Reports after sale of 10 Regulation 36 169,171 & 195 Reports Proof of Distribution within Regulation 11 Ninety days from the receipt of 200-217 42(2) realization Regulation 45 12 Final report dated 15.12.2023 26-40 (3) Regulation 5 (1) 13 Compilation of Minutes of SCC 415-498 (e) Audited Accounts of receipts and 14 Regulation 15 497-498 Payments Completion of Liquidation Process within one year from Liquidation 15 Regulation 37 233-235 Commencement Date or extension if any, date of the order & period 16 Form-H –Compliance Certificate 41-50F

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

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

18. It is stated that in the 9th SCC meeting dated 26.05.2023, 83.37% of the SCC members decided not to proceed further in the Avoidance/

Fraudulent transaction application filed u/s 66, IBC, 2016 vide

IA/509(CHE)/2023. Hence Liquidator filed a withdrawal memo on 20.07.2023 vide SR No. 3115 and this Tribunal dismissed

IA/509(CHE)/2023 as withdrawn and disposed-off vide Order dated

28.08.2023.

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

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

Realization:

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

Distribution:

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited

20. From the averments made in the Application and on perusal of the final report and the Compliance Certificate filed in Form-H by the Applicant, 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., Krishna Industrial

Corporation 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.

21. In terms of the above, this IA(IBC)(DIS)/4/CHE/2024 stands allowed and CP/1053/IB/2018 also stands disposed of. File be consigned to records.

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

SriramAnanth.V

IA(IBC)(DIS)/4/CHE/2024 in CP/1053/IB/2018 In the matter of Krishna Industrial Corporation Limited