# In the matter of Esprit Energy Appliances Private limited C.P. (IB) 3624-MB-2019

> NCLT judgment dated 2021-08-24. Citation: TCN-2021-NCLT-01297. The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Aug 2021
- **Citation:** TCN-2021-NCLT-01297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/esprit-energy-appliances-private-limited-cp-ib-3624-mb-2019-a7e5bcb9

## Summary

### Background

The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, for the voluntary liquidation of Esprit Energy Appliances Private Limited. The Corporate Person, through its Board of Directors, decided to liquidate the company voluntarily, declaring that the company had no debt and was not being liquidated to defraud any person. The liquidator followed the procedures as per the Code, including notifying the Registrar of Companies and IBBI, making public announcements, and submitting reports. The company's assets consisted of cash in the bank, and after meeting liquidation expenses, the remaining amount was disbursed to the shareholders.

## Facts

Esprit Energy Appliances Private Limited initiated voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company's Board of Directors resolved to liquidate, declaring solvency and absence of intent to defraud. The company was incorporated on 19.10.2007. Mr. Bharat R Upadhyay was appointed as the liquidator. The liquidator notified the Registrar of Companies and IBBI, made public announcements, and submitted reports. The Income Tax Department issued a no-objection certificate on 15.07.2019. The company maintained a bank account with Union Bank of India, which was closed on 11.09.2019, and a new account was opened for the liquidation process on 31.08.2019. The company's assets consisted of cash, amounting to Rs. 3,41,317.44/-, which was

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## Issues and analysis

### Issue 1: Whether the Corporate Person followed the proper procedure for voluntary liquidation under Section …

**Ratio:** The legal principle applied is that a Corporate Person can voluntarily liquidate itself

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**Reasoning:** The court reasoned that the liquidator had taken all necessary steps as required under

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**Interpretation:** Section 59 of the IBC allows a solvent Corporate Person to voluntarily

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**Application:** In this case, the liquidator followed the prescribed procedures, including

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## Parties

- **Judges:** SUCHITRAKAN…; Narendra Kumar…
- **Appellants:** Bharat R Up…
- **Respondents:** Esprit Energy…

## Timeline

- **2007-10-19 — Incorporation of…**: Esprit Energy Appliances…
- **2018-11-26 — Board Resolution for…**: The Board of Directors of the Corporate Person decided to liquidate the company…

## 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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