# In the matter of ATOPTECH DESIGN AUTOMATION PRIVATE LIMITED

> NCLT judgment dated 2020-06-17. Citation: TCN-2020-NCLT-01149. The case pertains to the voluntary liquidation of M/s. Atoptech Design Automation Private…

- **Court:** NCLT
- **Order date:** 17 Jun 2020
- **Citation:** TCN-2020-NCLT-01149
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/atoptech-design-automation-private-limited-43de97c2

## Summary

### Background

The case pertains to the voluntary liquidation of M/s. Atoptech Design Automation Private Limited. The company was incorporated on December 30, 2010, under the Companies Act, 1956. Due to a slowdown in operations and lack of viability, the Board of Directors decided to close the operations and liquidate the company voluntarily. A resolution was passed to this effect in a meeting held on July 10, 2018. The company initiated the voluntary liquidation process under Section 59 of the Insolvency and Bankruptcy Code, 2016.

## Facts

M/s. Atoptech Design Automation Private Limited was incorporated on December 30, 2010, with CIN: U72200KA2010PTC056429. Its registered office was located in Bangalore. The authorized share capital was Rs. 5,00,000, divided into 50,000 equity shares of Rs. 10 each. Due to a slowdown in operations, the Directors decided to close the operations. A resolution to liquidate the company voluntarily was passed on July 10, 2018. An Extraordinary General Meeting (EGM) was held on July 23, 2018, where shareholders passed a special resolution for liquidation. Mr. Hari Babu Thota was appointed as the liquidator. The liquidator made a public announcement of the commencement of liquidation on July 28, 2018. The de-registration was successfully completed from all authorities. The

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## Issues and analysis

### Issue 1: Whether the voluntary liquidation process of M/s. Atoptech Design Automation Private Limited should …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, allows for the voluntary

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**Reasoning:** The court observed that the operations of the company had slowed down, and the business

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**Interpretation:** Section 59 provides a mechanism for a solvent company to wind up its affairs

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**Application:** In this case, the court applied Section 59 by verifying that the company had

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** HARI BABU…
- **Respondents:** Atoptech Design…

## Timeline

- **2010-12-30 — Company Incor…**: M/s. Atoptech Design Automation Private Limited was incorporated under the Companies Act,…
- **2018-07-10 — Board Reso…**: The Board of Directors passed a resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 59 — Voluntary liquidation of corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-59)

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