# In the matter of Guntur Tobacco Limited

> NCLT judgment dated 2019-06-27. Citation: TCN-2019-NCLT-02756. The case pertains to a Company Petition filed by Smt. Padmasri Appana, the Voluntary Liquidator…

- **Court:** NCLT
- **Order date:** 27 Jun 2019
- **Citation:** TCN-2019-NCLT-02756
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/guntur-tobacco-limited-9cdb2bc8

## Summary

### Background

The case pertains to a Company Petition filed by Smt. Padmasri Appana, the Voluntary Liquidator of M/s Guntur Tobacco Limited, seeking the dissolution of the Corporate Person under Section 59 of the Insolvency and Bankruptcy Code, 2016. Guntur Tobacco Limited, registered under the Companies Act, 1956, was a Public Company limited by shares in Andhra Pradesh. The company's authorized capital was Rs. 10,00,000, divided into 1,00,000 equity shares of Rs. 10 each. The company engaged in tobacco business but ceased operations due to non-availability of business prospects and financial resources, leading to a voluntary liquidation resolution passed on 16.10.2017.

## Facts

Guntur Tobacco Limited, a Public Company registered under the Companies Act, 1956, initiated voluntary liquidation due to business challenges. The company's authorized capital was Rs. 10,00,000, divided into 1,00,000 equity shares of Rs. 10 each. The Board of Directors passed a resolution for voluntary winding up on 16.10.2017. Ms. Maddi Seetha Devi and Mr. Maddi Venkteswara Rao, majority directors, declared solvency on 16.09.2017. The liquidator, Smt. Padmasri Appana, made a public announcement on 17.10.2017, seeking stakeholder claims. The liquidator opened a bank account for liquidation purposes and filed preliminary and final reports. The liquidator also intimated the Income Tax Authorities and obtained a No Objection Certificate. The Registrar of Companies, Andhra

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## Issues and analysis

### Issue 1: Whether the Liquidator has complied with all the provisions of Section 59 of the IB Code, 2016 read …

**Ratio:** Section 59 of the IB Code, 2016, along with the IBBI (Voluntary Liquidation Process)

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**Reasoning:** The Adjudicating Authority examined the records and found that the board of directors had

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**Interpretation:** The interpretation of Section 59 requires strict adherence to the procedural

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**Application:** In this case, the liquidator demonstrated compliance by providing evidence of

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## Parties

- **Judges:** K. Anantha…
- **Respondents:** Guntur Tobacco…

## Timeline

- **1956-01-01 — Company Regis…**: Guntur Tobacco Limited registered…
- **2017-10-16 — Board Reso…**: Board of Directors passed a…

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