# In the matter of Mannil Property & Development Corporation Limited

> NCLT judgment dated 2021-12-01. Citation: TCN-2021-NCLT-00312. The case involves an application filed under Section 59 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Dec 2021
- **Citation:** TCN-2021-NCLT-00312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mannil-property-development-corporation-limited-9581a7d6

## Summary

### Background

The case involves an application filed under Section 59 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (IBBI Regulations) by the Voluntary Liquidator seeking dissolution of M/s. Mannil Property And Development Corporation Limited. The company was incorporated on 28.05.1992 with an authorized capital of Rs. 5,00,00,000. The Board of Directors decided on 20.11.2018 to voluntarily liquidate the company due to no significant business operations. An Extra Ordinary General Meeting was held on 27.05.2019 to approve the voluntary liquidation. A declaration of solvency was filed with the ROC on 22.04.2019.

## Facts

M/s Mannil Property and Development Corporation Limited, incorporated on 28.05.1992, initiated voluntary liquidation due to lack of significant business operations. The company's registered office is in Delhi. The Board of Directors resolved to liquidate on 20.11.2018, and shareholders approved it on 27.05.2019. Virender Jit Singh was appointed as the Voluntary Liquidator. The company had an authorized capital of Rs. 5,00,00,000. Public announcements were made in 'Financial Express' and 'Jansatta' on 01.06.2019. The company had paid its income tax dues. A bank account was opened and closed after asset distribution. The ROC and IBBI did not raise any objections to the liquidation. An Affidavit of Solvency was filed by the Director.

## Issues and analysis

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

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

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**Reasoning:** The court reasoned that the company had met the requirements of Section 59, including the

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**Interpretation:** Section 59 provides a mechanism for companies to voluntarily liquidate their

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**Application:** The court applied Section 59 to the facts of the case, finding that the company

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## Parties

- **Judges:** DHARMINDER…; Prasanta Kumar…
- **Respondents:** M/s Mannil…

## Timeline

- **1992-05-28 — Company Incor…**: M/s Mannil Property and Development…
- **2018-11-20 — Board Resolution for…**: The Board of Directors unanimously decided…

## 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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