# In the matter of China Steel Machinery Corporation India Pvt. Ltd. C.P. (IB) No. 76-NCLT-AHM-2019

> NCLT judgment dated 2019-05-02. Citation: TCN-2019-NCLT-03530. The case pertains to a company petition filed by the liquidator, Mr. Keyur J. Shah, on behalf…

- **Court:** NCLT
- **Order date:** 2 May 2019
- **Citation:** TCN-2019-NCLT-03530
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/china-steel-machinery-corporation-india-pvt-ltd-cp-ib-no-76-nclt-ahm-2019-01168e4b

## Summary

### Background

The case pertains to a company petition filed by the liquidator, Mr. Keyur J. Shah, on behalf of China Steel Machinery Corporation India Private Limited, seeking voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company's board of directors decided to close down the company due to the non-availability of business prospects and long-term financial resources. The company had no secured or unsecured creditors, and its resources were already distributed among its shareholders. The company passed a special resolution in its Extra Ordinary General Meeting (EOGM) on April 7, 2018, confirming the decision of its Board of Directors.

## Facts

China Steel Machinery Corporation India Private Limited sought voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company's CIN is U29100GJ2013FTC076107, with its registered office in Vadodara. The company's business activities included import, distribution, design, and marketing. The authorized share capital was Rs.2,00,00,000/-, divided into 20,00,000 equity shares of Rs. 10/- each. The issued, subscribed, and paid-up share capital was Rs.1,98,62,600/- consisting of 19,86,260 Equity Shares of Rs.10/- each. The Board of Directors decided to close the company due to a lack of business prospects and long-term financial resources. An Extra Ordinary General Meeting (EOGM) held on April 7, 2018, passed a resolution for voluntary

…

## Issues and analysis

### Issue 1: Whether the voluntary liquidation of the Corporate Person (Applicant Company) "M/s. China …

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

…

**Reasoning:** The Adjudicating Authority considered the material available on record, which showed that

…

**Interpretation:** Section 59 provides a framework for voluntary liquidation, emphasizing the need

…

**Application:** In this case, the company met the conditions outlined in Section 59. The Board

…

## Parties

- **Judges:** Manorama…
- **Respondents:** China Steel…; Registrar of…
- **Advocates:** Chetan…

## Timeline

- **2018-03-13 — Declaration by…**: Director of the Company, Mr. Yu Chen, made necessary declaration along with audited…
- **2018-04-07 — Extra Ordinary General…**: EOGM held, passing necessary Resolution to…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/china-steel-machinery-corporation-india-pvt-ltd-cp-ib-no-76-nclt-ahm-2019-01168e4b