# In the matter of Swayam Metals Ltd. IA 371-2020 in CP (I.B) No. 500-NCLT-AHM-2019

> NCLT judgment dated 2020-07-28. Citation: TCN-2020-NCLT-00952. The case involves an application filed by Mr. Prakash Tekwani, the erstwhile Resolution…

- **Court:** NCLT
- **Order date:** 28 Jul 2020
- **Citation:** TCN-2020-NCLT-00952
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swayam-metals-ltd-ia-371-2020-in-cp-ib-no-500-nclt-ahm-2019-11e3f2e4

## Summary

### Background

The case involves an application filed by Mr. Prakash Tekwani, the erstwhile Resolution Professional (RP) and later appointed as Liquidator of M/s Swayam Metals Limited, under Section 54(1) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 14 of the IBBI (Liquidation Process) Regulations, 2016, seeking the dissolution of the Corporate Debtor. The Corporate Debtor was ordered for liquidation on 01.01.2020, following a resolution passed by the Committee of Creditors (CoC) with 100% voting share. Public announcement was made on 31.01.2020, inviting claims. One claim was filed by M/s Meridian Telesoft Limited, which was admitted. The applicant constituted a Stakeholders Consultation Committee (SCC).

## Facts

Mr. Prakash Tekwani, the liquidator of M/s Swayam Metals Limited, filed an application for the dissolution of the company under Section 54(1) of the IBC. The Corporate Debtor was ordered into liquidation on 01.01.2020, following a CoC resolution. A public announcement was made on 31.01.2020, inviting claims, and one claim was received from M/s Meridian Telesoft Limited. The liquidator constituted a Stakeholders Consultation Committee (SCC). The liquidator determined that the Corporate Debtor had no realizable assets and no funds to meet its liabilities. The Unsecured Financial Creditor was informed of this situation. The liquidator prepared a final report and compliance certificate and submitted it to the Adjudicating Authority. The Corporate Debtor has not been in

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Swayam Metals Limited, should be dissolved given the lack of …

**Ratio:** Section 54 of the Insolvency and Bankruptcy Code (IBC) allows for the dissolution of a

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**Reasoning:** The Adjudicating Authority considered the liquidator's report, which indicated that the

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**Interpretation:** Section 54 of the IBC is interpreted to allow for the dissolution of a

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**Application:** In this case, the liquidator's report confirmed that M/s Swayam Metals Limited

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## Parties

- **Judges:** Manorama…
- **Appellants:** Prakash T…
- **Respondents:** Swayam Metals…

## Timeline

- **2020-01-01 — Liquidation…**: The Hon'ble Adjudicating Authority passed an order for liquidation under Section 33 of IB…
- **2020-01-31 — Public Annou…**: The applicant made public announcement as per rule 12 of the Regulation, in English and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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