In the matter of NPAT Furniture Pvt. Ltd.

IN THE NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD DIVISION BENCH COURT - 1 ITEM No.302 IA/831(AHM)2022 in CP(IB) 171 of 2019 Order under Section 54 IBC,2016 IN THE MATTER OF: Kaushik J Shah Liquidator of NPAT Furniture Pvt Ltd ........Applicant

Order delivered on: 27/09/2023 Coram: Mr. Shammi Khan, Hon’ble Member (J) Mr. Kaushalendra Kumar Singh, Hon’ble Member(T)

PRESENT: For the Applicant : For the Respondent :

ORDER

The case is fixed for pronouncement of the order. The order is pronounced in the open court, vide separate sheet.

-Sd- -Sd- KAUSHALENDRA KUMAR SINGH SHAMMI KHAN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

IA No. 831 of 2022 in CP(IB) No. 171 of 2019 BEFORE THE ADJUDICATING AUTHORITY, NATIONAL COMPANY LAW TRIBUNAL, AHMEDABAD BENCH COURT-I IA No. 831 of 2022 in CP(IB) No. 171 of 2019 (Filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 for dissolution of the Corporate Debtor) In the matter of NPAT Furniture Pvt. Ltd.

Mr. Kaushik J Shah Liquidator of M/s. NPAT Furniture Pvt. Ltd. … Applicant Order Pronounced on: 27.09.2023

CORAM SHAMMI KHAN, MEMBER (JUDICIAL) KAUSHALENDRA KUMAR SINGH, MEMBER (TECHNICAL)

Appearance For the Applicant : Mr. Rushabh Shah, PCS for the Applicant For the Income Tax Department : Ms. Pankti Shah, Adv. for Ms. Maithili Mehta

1. IA/831(AHM)/2022 is an application filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) filed by Mr. Kaushik J. Shah, liquidator of the Corporate Debtor (NPAT Furniture Pvt. Ltd.) seeking order of Dissolution of the Corporate Debtor.

IA No. 831 of 2022 in CP(IB) No. 171 of 2019 2. On perusal of the application, it appears that Corporate Insolvency Resolution Process (“CIRP”) of the Corporate Debtor initiated by this Tribunal vide order dated 18.12.2019 and the Applicant herein was appointed as Interim Resolution Professional (“IRP”) and thereafter as Resolution Professional (“RP”).

3. Further, it is seen that the Liquidation of the Corporate Debtor was ordered by this Tribunal on 21.10.2021 in IA No. 692 of 2020 and the Applicant herein was appointed as the Liquidator.

4. Pursuant to the order of Liquidation, the Applicant caused Public Announcement in the newspapers viz. “Economic Times” and “Loksatta- Jansatta” on 03.12.2021 by inviting claims from all the stakeholders with the last date for submission of claim as 27.12.2020 and the same was also uploaded on the website of IBBI.

5. On the basis of claims received in response to public announcement, the liquidator prepared list of stakeholders. The claims received from the stakeholders are as under:

IA No. 831 of 2022 in CP(IB) No. 171 of 2019

6. The Liquidator has opened Liquidation account with ICICI Bank, having account no. 230805500310. As per Section 53 of IBC, 2016, the Liquidator distributed the proceedings to stakeholders. Copy of statement with Nil balance is annexed as Annexure “E” to the present application.

7. It is stated that the liquidator has submitted the Asset Memorandum and progress report for the quarter ended on 31.12.2022 and further appointed the registered valuers to determine the realizable value of the assets, in consultation with the stakeholders.

8. It is stated that the applicant herein published newspaper advertisement to sell the liquidation estate of the Corporate Debtor through an auction by releasing advertisement. As per the advertisement dated 20.07.2021, an e-auction to sell machineries and scrap was scheduled to be held on 27.07.2021 and no EMD was received within the timeline mentioned in IA No. 831 of 2022 in CP(IB) No. 171 of 2019 advertisement, hence, the said e-auction was declared failed. Thereafter, some private buyers approached the liquidator for purchase of liquidation estate.

9. It is stated that the applicant herein held meeting on 30.07.2021 in consultation with stakeholders comprising of sole financial creditor – Punjab National Bank for disposal of liquidation estate by private sale as per Regulation 33(2) of IBBI (Liquidation Process) Regulations, 2016.

10. Mr. Milan Jashvantbhai Patel of M/s. Atlas Enterprise approached liquidator for purchase of machineries by way of private sale. Liquidator after receipt of Rs. 3,70,000/- i.e., higher than reserve price of failed auction i.e. Rs. 3,68,000/- had disposed of machineries and furniture by private sale in accordance with Regulation 33(2) of IBBI (Liquidation Process) Regulations, 2016.

11. The Liquidator has prepared the final report showing the receipt/realization and payments/distributions of funds which is at Annexure “L”.

12. It is stated that a meeting of Stakeholders was held virtually on 24.03.2022 for discussing distribution of funds, shortfall in amount to be contributed by liquidator and filing of application for dissolution of the Corporate Debtor. Copy of the said minutes is annexed as Annexure M.

IA No. 831 of 2022 in CP(IB) No. 171 of 2019

13. It is stated that the Punjab National Bank – the sole Secured Creditor deposited the shortfall of liquidation expenses amounting to Rs.4,28,381/- on 20.04.2022.

14. 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 NO THE APPLICATION Public Announcement in Form B in Economic Times and 1 Regulation 12 33-34 Loksatta-Jansatta dated 03.12.2020 Appointment of Registered Regulation Page no.5 2 Valuers where no valuation 35(2) Para (h) conducted during CIRP List of Stakeholders within 45 Regulation 3 days of the Liquidation 37 31(2) Commencement Date Regulation Constitution of Stakeholders 4 N/A 31A Consultation Committee (SCC) Preliminary Report dated 5 Regulation 13 N/A 15.04.2021 Preparation of Asset 6 Regulation 34 38 Memorandum dated 13.01.2021 Opening of Bank Account in the name of the company in 7 Regulation 41 35-36 Liquidation in “ICICI Bank” dated 01.04.2022 Proof of Closure of the above 8 Bank Account and other N/A account in the name of the IA No. 831 of 2022 in CP(IB) No. 171 of 2019 Company Quarterly Progress Reports and 9 Regulation 15 proof of filing the same before 39 this Tribunal Asset Sale Reports after sale of 10 Regulation 36 62-65 Reports Proof of Distribution within Regulation 11 Ninety days from the receipt of 35 42(2) realization Regulation 45 12 Final report dated 16.02.2022 66-68 (3) Regulation 5 13 Compilation of Minutes of SCC 55-61 (1) (e) Audited Accounts of receipts 14 Regulation 15 78-79 and Payments Completion of Liquidation Process within one year from 15 Regulation 37 Liquidation Commencement 31 Date or extension if any, date of the order & period Additional Affidavit dated 16 Form-H dated 23.06.2022 03.07.2023 filed vide diary no.D2423

15. It is seen from Form-H that the Applicant / Liquidator has not filed any Application Sections 43, 45, 50 and Section 66 of IBC, 2016. As per Form –H, the amounts distributed to stakeholders as per Section 52 and 53 of the code is as under:

IA No. 831 of 2022 in CP(IB) No. 171 of 2019

16. We have heard the counsel and perused the material on record. The Corporate Debtor was admitted to CIRP on 18.12.2019. Thereafter, order of liquidation was passed in I.A. No.692 of 2020 on 21.10.2020 and the applicant herein was appointed as Liquidator. This Tribunal vide order dated 19.04.2022 in I.A. No. 294 of 2022 has extended the liquidation period for four months.

17. At this juncture, it is relevant to point out Section 54 of the IBC, 2016 provides as follows: -

Section 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. (2) The Adjudicating Authority shall on application filed by the liquidator under sub-section (1) order that the IA No. 831 of 2022 in CP(IB) No. 171 of 2019 corporate debtor shall be dissolved from the date of that order and the corporate debtor shall be dissolved accordingly. (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.”

18. From the averments made in the Application along with the 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 hereby order for the dissolution of the Corporate Debtor viz., NPAT Furniture Private Limited from the date of this order and the Corporate Debtor stands dissolved.

19. Consequently, the Liquidator Mr. Kaushik J Shah is discharged from his duties and responsibilities as the Liquidator of the Corporate Debtor.

20. The Liquidator and the Registry are 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. The Liquidator shall preserve physical or electronic copy of the reports, registers, and books of account referred to in Regulations 45A of the IBBI (Liquidation Process) Regulations, 2016 for at least eight years

IA No. 831 of 2022 in CP(IB) No. 171 of 2019 after the dissolution of the Corporate Debtor, either with himself or with an information utility.

22. In terms of the above, this I.A. No. 831 of 2022 stands allowed and disposed off.

-Sd- -Sd- KAUSHALENDRA KUMAR SINGH SHAMMI KHAN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

Alpesh/P.S.