In the matter of Precision Engineers & Fabricators Private Limited

IN THE NATIONAL COMPANY LAW TRIBUNAL KOLI(ATA BENCH (Court-I| KOLI(ATA I.A. (IB) Dis. No.t6lKBl2o2s In C.P.(lB) No. 1 73 /KB / 2o\7 An application under section s4(i) of the Insoluency & Bankruptcy Cod_e, 2016 read with Regulation as@@) of the Insoluencg & Bankruptcg Board. of India (Liquidation process) Regulations, 20 1 6 ln the matter of: Berger Paints India Limited ...OPERATIONAL CREDITOR Versus Precision Engineers & Fabricators private Limited ...CORPORATE DtrB'I'OR And In the matter of: Mr. Rasik Singhania, son of Late umapati Singhania, aged about 43 years, by faith-Hindu, by occupation Insolvency Professional & Chartered, Accountant, having office at chitrakoot Building, room No.98, 9th Floor, 23oA, A.J.c Bose Road, Kolkata-700020; email-rasik"sinehania(@&mail.com; having Registration No. IBBI/lPA-001/tP-pOo39ol2otz-181i0708; phone No. 9433 146020 ...APPLICANT

Date of pronouncement of order: 24.O7.2or25 CORAM: SMT. BIDISHA BANERJEE, HON'BLE MEMBER (JUDICIAL} CMDE SIDDHARTH MISHRA, HON'BLE MEMBER (TECHNICALI Appearances {via Video Conferencing/physical}: Mr. Raj Singhania, CA ] For the Liquidator Mr. Rashik Singharria I Liq-in person ORDER k a,a'-^) ( ,t- , (- ,r- .t> r'\D' \_

IN THE NATIONAL COMPAIflT LAW TRIBUNAL KOLKATA BENCH (Court-Il KOLX./},TA I.A. (IB) Dis. No.16lKB/2025 In C.P.(IB) No. 1 3 / KB / 2022 Per: Per: Bidisha Banerjee, Member (Judicial) 1. The Court congregated in a hybrid mode. 2. is. No. 1 2025 is following reliefs: a. "The applicant requests the Hon'ble Adjudicating Authority to allow fhls Dr-ssolution Application and take the same on record; b. This Hon'ble 'fribunal may be pleased" to d.eclare the closure of the Liquidation Process of the corporate Debtor and. be pleased to pass appropriate orders/ directions to Order dissolution of the Corporate Debtor i.e. Precision Engineers & Fabricators Priuate Limited., und-er Section 54(2) of the Code. c. The Hon'ble Tribunal may be pleased. to d.ischarge the Liquid.atorfrom his duty as Liquidator of the Corporate Debtor. d. 7o pass any other orders/ Directions as deemed fit a necessary by this Hon'ble Court in the interest of justice and, equity.,'

3. Facts ofthe Case: 3.1. That this application has been filed by Berger paints India Limited (hereinafter referred to as "Operational Creditor") vide order dated 04.o4.2017 under section 9 of the I&B code, 2016 to initiate Corporate Insolvency Resolution Process (hereinafter referred to as "CIRP") against Precision Engineers & Fabricators Private Limited (hereinafter referred to as "the corporate Debtor"). Mr. Rasik singhania was appointed as the IRp vide order dated 22.1O.2O18 as a Liquidator. 3.2. The applicant submits that the Corporate Insolvency Resolution Process (CIRP) of the corporate Debtor was initiated w.e.f. 221 lo 12018 and the Pubiic Announcements in Form-B of Schedule II of the Liquidation Regulations were made on 05.11 .2018 in the newspapers on Financial Express (English), a/t .r- Pagc 2 of l0 Yi ti (.!:-*..., ,* lFlrRUE COpy

KOLKATA BENCH (Court-I) KOLXATT{, I.A. (IB) Dis. No.16/KBl2025 C.P.(lB) *.. r, *, rr)\ 1 1 Kolkata edition and Aajkaal (Bengali vernacurar Daity) Kolkata edition inviting proof of claims from all stakeholders and also stating that the corporate Debtor has entered the process of Liquidation. Public announcement in Form B on 05.11 .2018 is marked as Annexure-B. 3.3. That in response to the public announcement, thirteen number of claims were received by the Liquidator and in compliance with Reguiation 31 of the Liquidation Regulations, on 15.01 .2019 prepared the list of stakeholders and filed it before this Tribunal. on 12.12.2023 the liquidator filed the last modified list of stakeholders. After the modified list of stakeholders 16 number of claims were outstanding which amounts to Rs. 1,32,25,18,807 out of which Rs.1,24,09,O5,376 were admitted by the Liquidator. The last modified list of stakeholders is annexed as Annexure-C. 3.4. The liquidator submits that the corporate Debtor had two factories situated at Kalyani and Falta. The liquidator visited the factory situated at Falta to take control & custody of the assets of the corporate Debtor with the help of Ramnagar police station. After entering to the Premises of the Factory the Liquidator noticed that a major part of the assets incruding Factory Shed, Plant & Machinery etc. had already been removed and that rest of the assets were in the process of being removal from the premises of factory. After intimation with the security personnel working in the factory premises the liquidator came to know that the erstwhile directors of the corporate Debtor were involved in removing substantial part of the assets lying/installed at the factory premises. The applicant also found that a car of Mr. Ravinder Pal singh sahni(Being one of the er. s , t, w ,. h '' ile director/promoter of the cD) was also lying in the I) roe L,i lll V t_' ,

IIV.I'IIE NATIOI{AI., COMPATIY LAW TRIBUNAI KOLKATA BEI{CH iCourt-If KOLK]I'fA I.A. (tB) Dis. No.16lKBl2025 c.P.(rB) No. t s 1 we 1 zo)\ factory premises. On 20.11.2018 the applicant filed an FIR against the er:stwhile directors/promoters of the CD at Ramnagar Police Station. Copy of the F.l.R is annexed as Annexure-D. on 22.11.2018 the applicant visited the Kalyani factory of the corporate Debtor to take custody of the assets of the corporate Debtor and observeci that there is no movable asset lying at the premises. 3.5. That on 28.11.2018 the applicant filed an apprication und.er Secticn 68 of IBC, 2016 before the Tribunai against erstwhile DirecLors of the corporate Debtor for concealment of the property. on 06. r2.2o18 sFIo was directed to investigate the matte.r'and .send their interim report within one month. vide order.dated 78.o7.2019 this Tribunal dismissed the application on the ground that F.l.R has already been lodged for the above concea.lment and investigation is going on. 3.6. Thar the appiicant intimated the Insolvency and Bankruptcy Boarcl of Inclia (IBBI) about the matter and mal<ing an application under section 236 before the special court of the I&B Code,20!6 with Criminal Case number 07 /2019 and that the trial o{ the offence has been initiated. The case is ongoing till date and. the applicant will be informing the special court about the dissoiution of the cD as and when the dissolution order is passed by this Bench. 3.7. That in compliance with Regglation 13 of the Liquidation Regulations, the Preliminary Report was prepared and submitted on 15.01.2019, within 75 days from the liquidation commencement date along with the Asset mernorandum as required und.er Regulation 34 of the Liquidation Regulations. On 30.A9.2A19 in accord.ance with Regulation 34 of the !,lguidation Regr-rlations, and after receiving the aforesaid ',.,]. . -., i .. : r. r, . . : 1 .._ 1 \ : . . ' i - \ t.\ Prg. ,l ol'I[l tlP 'a I ' t h\' i i,iY; V c '\1 * *il

IN THE NATIONfIL COMPANY LAW TRIBUNAL KOLIL4,TA BENCH (Court-I| KOI,!{ATA I.A. (IB) Dis. No. 16lKBl2025 C.P.(IB) No. t 3 / KB / 2022 required details the liquidator prepared and filed the Asset Memorandum before this bench on 15. lO.2}lg 3.8, It is submittec by the applicant that the corporate Debtor having Factory at tralta and Kalyani on which Union Bank of India and Axis Bank'l,imited had a charge respectiveiy and both of them enforced the security interest. Union Bank of lndia and Axis Bank Limited realized their security interest. plant & Machinery and equipment at Falta Factory and another lease hold land near the Falta F'actory on which L&T Finance Limited had second charge which they relinquished. Accordingly, there was only a land (lease hold) and Plant and Machinery (scrap) in the Liquidation Estate. The Liquidator conducted the valuation and average liquiCation value was Rs.48. 15 lakhs. 3.9. The apolicant subrnits that he has conducted six E-auctions for the sale of the corporate I)ebtor's assets; The initial three E-auctions conducted. v.rere onl1, for sale of leasehoid. Land, which were unsuccessful. The 4th E-auction was conducted for both Plant and Machinery and leasehold Land. Though, the auction was successful only for the Plant and Machinery. As no EOI was received for the leasehold lanci due to its unusnal size, it was surrendered back,to WBIIDC for a sum of Rs. 14,3\,4Ol l-. 3.I O. The Liquida.tor has filed t',venty-six (26) quarterly progress report under Regulation 15 from time to time and |ne 2'/th Progress report has been filed in a separate IA. 3.1 1. The 4th.e-auction was conducted on 07 .11.2022 with a reserved price of Rs.24.75 lakh, the. auction -was successful and the successful bidder "M/s. AKT Enterprise" who paid the entire consideration. An IA 38tlKB/2022 was filed by On Advisory services Privatq Limited before this Tribunal claiming that the Pontoon belongs to them. The applicant had all the relevant docurrrents to prove that the Pontoon was owned by the i6 ' Page 5 ol't0 fiERT}FiI l'''i {'' ;.] d" -1"ii' i' ; ; r)Ul';i

IN THE NATIONAL COMPANY LAW TRIBUNAI KOLKATA BENCH (Court-Il KOLKATA I.A. (lB) Dis. No.1 6lKB/2o2s c.P.(lB) No. rc1rca1Zo)\ Corporate Debtor and not by the "On Advisory Services Private Limited". The iA 381 of 2022 was heard from time to time but on 21 .O9.2022 as the counsel for the applicant was not present and the matter was dismissed by the NCLT, Kolkata Bench. On 21.09.2022 t}:e liquidator appointed valuers to conduct the valuation of the piant and machinery, Against the dismissal order dated 21.09.2022 the "On Advisory Services private Limited" again filed a restoration application being IA 1151 /KB / 2022 before this Bench, on 15.07 .2023 the restoration appiication was allowed. On 24.12.2024 the application filed by M/s. on Advisory services private Limited has been rejected by this Tribunal the applicant had a discussion with the successful bidder that whether they are willing to continue with the sale, but the successful bidder was not interested and requested the liquidator to refund the EMD amount. On 26.12.2024 the last auction gets cancelled. The copy of the order dated 20.12,2024 is Annexed as Annexure-E. 3.12. That on 14.02.2025 the liquidator conducted Sth e-auction with a 107o reduction in the reserve price in accordance with Schedule I of the Liquidation Regulations which amounts to Rs.22,28,000/-, EOI was received from 5 parties & thereafter EMD was received from 2 parties, however no bid was submitted by the parties, hence, the e-auction was unsuccessful. On 27.O3.2025 the Liquidator conducted 6th e-auction after reducing the Reserve Price by \Ook in accordance with Schedule I of the Liquidation Regulations, which amounts to Rs.20,06,000/- M/s. Maa Tara Iron & Steel Trading Co. became the successful bidder (H 1 bidder) at a bid price of Rs.22.06 lakhs.

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IIT THE NATIONAL COMPANY LAtr' TRIBUNAL KoLKATA BENCH (Court-Il KOLKATA I.A. (lB) Dis. No. I6lKB/2025 C.P.(IB) *o. r, *, ro)t 1 1 3.13. That as per section 53 of IBC code, the entire realization amount were to be first distributed towards the unpaid cIRp cost and Liquidation Cost. The total realization amounts to Rs.53,35,44O/- and the total unpaid CIRP costs was Rs.31 ,53,469 /- and the total of paid and estimated liquidation costs amounts to Rs.44,8r,gzr/- which has tobe paid in priority in accordance with Section 53. Though, there is a deficit of Rs.23,00,000/-. The Financial creditors have already contributed Rs.31 ,53,469 towards CIRP Costs and Rs.25,99,999/- towards liquidation costs. The liquidator will refund the entire amount of cIRp costs contributed by the Financial creditor and the same and balance of Rs.3,00,000/-being the excess contribution towards liquidation costs (Rs.25,99,999/- Less 23,00,000/-) in equal proportion as the same was contributed also in equal proportion. There are no surplus funds after incurring cIRp & Liquidation cost, thus there is no funds left for distribution under Section 53(i)(b). 3.74. In accordance u,ith Regulation 41(1) of the liquidation Regulation, a current account in the name of M/s. precision Engineers & Fabricators private Limited in liquidation bearing Account No.401601010519960 was dury opened with the Union Bank of India, Kolkata Branch and after final distribution the bank balance was NIL and the liquidator applied for closure of the Bank Account on 26.06.202s. T]he copy of the bank statement and account closure is annexed as Annexure-F'. 3.15, That as per Regulation a5(3) of the Insolvency and Bankruptcy Board of India (Liquidation process) Regulations, 2016. compiiance certificate FoRM-H is annexed hereto and marked

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IN THE NATIONAL COMPANY LI\W TRIBUNAL KOLKATA BENCH (Court-If KOLKATA I.A. (lB) Dis. No.16lKB/2025 C.P.(lB) No. 13 / KB / 2022 3.16. The Liquidator has attached his final report dated 30.06.2025 along with the Dissolution application in pursuance to Section 54 of the Code read with Regulation 45 of Liquidation Regulation. The audited receipts and payments account for the period since the beginning of financial year till completion of Liquidation Process along with Receipts and Payments Account of all previous years i.e. 01. 1 1 .2018 to 3 1 .03 .2}lg till 01.O4.2A25 to 30.06.2A25 are collectively annexed to the Final Report. The Final Report in accordance with Regulation 45(3) is annexed hereto and marked as Annexure-H.

3.77. Therefore, liquidator recommends that the Corporate Debtor needs to be dissolved as per the provisions of section 54 of IBBI Code, 2016 r/w Regulation 45 of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 4. we have considered the application and perused records. various provisions of the Code dealing with the dissolution of the Corporate Debtor are as follows: 6'54. Dissolution of corporate d.ebtor. - (1) Where the assets of the corporate debtor haue been completelg tiquidated, the liqtiidator shall make an application to the Adjudicating Authority for the dissolution of such corporate debtor. (2) The Adjudicati.ng Authority shall on application filed by the liquidator under sub-section (1) order that the corporate d-ebtor shall be d.issolued from the d.ate oJ that ord.er and. the corporate debtor shall be dissolued accordinglg. (3) A copy oJ'an ord"er und-er sub-section (2) shall within seuen days from the date of such order, be forwarded to the authority with which the corporate debtor is registered."

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IN THE NATIONAL COMPANY LATV TRIBUNAI KOLXATA BENCH (Court-If KOLXATA I.A. (lB) Dis. No.16lKBl2025 ln C.P.(lB) No. 13 / KB / 2022

5. A conjoint reading of these two provisions leads to the requirement of completion of the liquidation of the assets of the corporate debtor and subsequent application to the Adjudicating Authority by the liquidator for dissolution under section 54 of the IBC where the assets of the Corporate Debtor has been completely liquidated after distribution among the stakeholders for the Liquidation process Regulations when the realizable properties of the corporate debtor are insufficient to cover the cost of the liquidation process, the liquidator may apply to the Adjudicating Authority for dissoiution. In view of the above facts and circumstances, this Adjudicating Authority in exercise of the powers conferred under sub-section (2) of section 54 of the Code hereby orders dissolution of the Corporate Debtor, vtz., Precision Engineers & Fabricators priuate Limited. from the date of this order, and the corporate Debtor stands dissolved. consequently, Liquidator stands relieved subject to all procedural compliances. 1t7. The Liquidator and the Registry are hereby directed to serve a copy of this order upon the Registrar of companies, west Bengal, immediately and, in any case, within fourteen days of receipt of this order. The Registrar of companies shall take further necessary action upon receipt of a cop5z of this order. 8. I.A.(IBl Dis. No.L6llK.BllZO25 and Cp (rBl No.173l(KB)/2O17 is allowed and disposed of with the above directions. 9. The Registry is directed to send e-mail copies of the ord.er forthwith to ali the parties and their Ld. counsel for information and for taking necessary steps.

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IN TI{E I{ATIO}IAL C(.IITPAflY LAW TRIBUNAL KOLr{.{'fA I}Et{ CH (r.jourt- I} KOLKATA i.A. (Its) Dis. No.i6lKBl2025 In C.P.(lB) No. 13 / KB / 2022. i0. Certifieri Copy o1'this order may be issued, if applied for, upon compliance of ail requisite formalities.

sc/- J/-- S ., Cmde Siddharth Mishra Bidisha Banerjee Member (Technical! IVlember (Judicial) Sigr.red on this, the 24tt July,2025.

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