# In the matter of Shashi Kaizen Industries Pvt. Ltd. C.P. (IB) No. 29-BB-2021

> NCLT judgment dated 2021-03-19. Citation: TCN-2021-NCLT-02642. The case pertains to the voluntary liquidation of M/s. Shashi Kaizen Industries Pvt. Ltd. The…

- **Court:** NCLT
- **Order date:** 19 Mar 2021
- **Citation:** TCN-2021-NCLT-02642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shashi-kaizen-industries-pvt-ltd-cp-ib-no-29-bb-2021-880640d9

## Summary

### Background

The case pertains to the voluntary liquidation of M/s. Shashi Kaizen Industries Pvt. Ltd. The company, incorporated in 2005, ceased its primary business operations five years prior to the proceedings and primarily generated income from fixed deposits. Due to changes in technology, the need for upgrades, and the inability of the main promoter (a senior citizen holding 70% of the shares) to either run the business or bring in capital, the company's Board of Directors resolved to voluntarily liquidate the company on April 1, 2019. The directors made a declaration of solvency, and the members passed a special resolution for voluntary liquidation.

## Facts

M/s. Shashi Kaizen Industries Pvt. Ltd. was incorporated on April 21, 2005, under the Companies Act, 1956. The company's authorized share capital was Rs. 1,00,00,000, divided into 10,00,000 equity shares of Rs. 10 each. The issued, subscribed, and paid-up capital was Rs. 91,00,000, consisting of 9,10,000 equity shares of Rs. 10 each. For the five years preceding the liquidation, the company was not actively carrying on business and primarily earned income from fixed deposits. On April 1, 2019, the Board of Directors resolved to voluntarily liquidate the company due to technological changes, the need for upgrades, and the inability of the main promoter to continue operations. Mr. Venkatesh Muniswamappa and Mr. Tara Venkatesh, the Directors, made a declaration of

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## Issues and analysis

### Issue 1: Whether the Applicant Company has followed due process of law before filing the instant …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, and the IBBI (Voluntary

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**Reasoning:** The court examined the actions taken by the liquidator, including making public

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**Interpretation:** The due process of law in the context of voluntary liquidation requires strict

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**Application:** The court found that the Applicant Company had complied with all the necessary

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Thummala…
- **Respondents:** Shashi Kaizen…; The Registrar of…

## Timeline

- **2005-04-21 — Company Incor…**: M/s. Shashi Kaizen Industries…
- **2019-04-01 — Board Resolution for…**: The Board of Directors resolved 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)

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