Jammu branch of HMT ordered to be dissolved
The Chandigarh Bench of the National Company Law Tribunal (NCLT) has ordered the dissolution of Government of India-owned HMT Chinar Watches Limited.
A petition of Voluntary Liquidation was filed by the company in February 2019 after the Board of Directors of the Company in its meeting on 26 February 2019 had passed a resolution for Voluntary Liquidation of the Company under Section 59 of the IBC, 2016 and for filing the declaration of solvency for voluntary liquidation as well as for appointing Akhilesh Kumar Gupta as liquidator of the company.
The Jammu-based HMT Chinar was incorporated to carry on the business of manufacturing of watches and is a subsidiary company of HMT Ltd. The company had taken loan from the Government of India towards meeting its working capital requirements and also for acquiring fixed assets. Since the losses were piling up and losses were much more than the paid-up capital, the Government of India decided to close down the company.
Accordingly, the Government of India in Ministry of Heavy Industries and Public Enterprises, Department of Heavy Industries issued an order in this regard on 13 January 2016.
In this background, the members of the company in its EOGM dated 25.03.2019 have also resolved to liquidate the HMT Chinar.
Further, the liquidator has informed the concerned authorities – Insolvency and Bankruptcy Board of India, RoC and Income Tax Department — and has also made paper publication in two newspapers.
The liquidator has also prepared the list of stakeholders after due verification of claims The Liquidator has completed the final distribution of assets and has also closed the bank account. The voluntary liquidator has also prepared and submitted the final report to the IBBI on 13 August 2020 via e-mail and RoC on 19 August 2020.
The Application is duly supported by the affidavit of the Voluntary Liquidator.
