# In the matter of Rainbow Industrial Park Private Limited IA-1094-AHM-2022 in CP(IB)-729-AHM-2019

> NCLT judgment dated 2023-05-19. Citation: TCN-2023-NCLT-03252. The case involves an application filed by the liquidator of M/s Rainbow Industrial Park Private…

- **Court:** NCLT
- **Order date:** 19 May 2023
- **Citation:** TCN-2023-NCLT-03252
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rainbow-industrial-park-private-limited-ia-1094-ahm-2022-in-cpib-729-ahm-2019-a14ca85d

## Summary

### Background

The case involves an application filed by the liquidator of M/s Rainbow Industrial Park Private Limited, seeking dissolution of the corporate debtor under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, read with regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The corporate insolvency resolution process (CIRP) was initiated based on an application filed by an operational creditor under Section 9 of the Code, which was admitted on 05.10.2021. Subsequently, a liquidation order was passed on 31.05.2022, and the applicant was appointed as the liquidator.

## Facts

Mr. Kinjalkumar Madhubhai Chaudhary, the liquidator of M/s Rainbow Industrial Park Private Limited, filed an application seeking the dissolution of the corporate debtor. The CIRP was initiated by an operational creditor, Mr. Shashikant Thakar, under Section 9 of the Insolvency and Bankruptcy Code, 2016, and was admitted on 05.10.2021. A liquidation order was passed on 31.05.2022, appointing Mr. Chaudhary as the liquidator. The liquidator prepared a list of stakeholders, with the only claim staked by the operational creditor for Rs 1,30,000/-. The liquidator did not open a separate bank account for the corporate debtor during liquidation. The liquidator's final report, dated 19.11.2022, indicated that the only assets available were Rs 1,827/- in cash and bank balance.

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## Issues and analysis

### Issue 1: Whether the corporate debtor, M/s Rainbow Industrial Park Private Limited, should be dissolved …

**Ratio:** Section 54(2) of the Insolvency and Bankruptcy Code, 2016, allows for the dissolution of

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**Reasoning:** The court reasoned that the liquidator had completed all necessary steps in the

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**Interpretation:** Section 54(2) is interpreted to mean that once the liquidator has exhausted all

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**Application:** In this case, the liquidator's report indicated that the only remaining assets

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## Parties

- **Judges:** Sh. Ashok Kumar…; KAUSHALENDRA…
- **Appellants:** Kinjalkumar…
- **Respondents:** Rainbow Industrial…; Shashikant…

## Timeline

- **2021-10-05 — CIRP Admi…**: The application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the…
- **2022-05-31 — Liquidation…**: An order for liquidation was passed, and the…

## 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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