# In the matter of Banjara Hospitality Private Limited CP (IB) No. 403-59-JHDB-2020

> NCLT judgment dated 2021-07-23. Citation: TCN-2021-NCLT-01641. The case involves a company petition filed under Section 59 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 23 Jul 2021
- **Citation:** TCN-2021-NCLT-01641
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/banjara-hospitality-private-limited-cp-ib-no-403-59-jhdb-2020-a17c6bc5

## Summary

### Background

The case involves a company petition filed under Section 59 of the Insolvency and Bankruptcy Code, 2016, by Banjara Hospital Private Limited, seeking voluntary liquidation. The company was incorporated in 1985 and decided to wind up its operations as it was not generating revenue. The Board of Directors passed a resolution for voluntary liquidation and made a declaration of solvency. The liquidator was appointed, and a public announcement was made inviting claims from stakeholders. The company had no assets remaining after settling debts and distributing the remaining amount to its members.

## Facts

Banjara Hospital Private Limited, incorporated on November 18, 1985, sought voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company's management decided to wind up operations due to a lack of revenue generation for over five years. The Board of Directors declared solvency on October 5, 2019, and appointed Mr. Jagadees Kumar Morri as the liquidator on October 23, 2019. A public announcement was made on October 26, 2019, inviting stakeholder claims. The company notified IBBI, the Registrar of Companies, and the Income Tax Department of the special resolution to liquidate. After realizing assets, paying creditors, and covering liquidation expenses, Rs. 74,25,000 was distributed to members. The liquidator filed a final report, and

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## Issues and analysis

### Issue 1: Whether the company petition for voluntary liquidation under Section 59 of the Insolvency and …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, allows a corporate person to

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**Reasoning:** The court noted that the Board of Directors had made a Declaration of Solvency dated

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

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**Application:** In this case, the court found that the company had met the conditions for

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## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Respondents:** Banjara Hospital…

## Timeline

- **1985-11-18 — Incorporation o…**: Banjara Hospital Private Limited was…
- **2019-10-05 — Declaration of…**: The Board of Directors made a Declaration of Solvency as required under Section 59 (3)…

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