# In the matter of Sidhivinayak Financial Services Limited

> NCLT judgment dated 2021-12-01. Citation: TCN-2021-NCLT-00311. The case pertains to the voluntary liquidation of Sidhivinayak Financial Services Limited under…

- **Court:** NCLT
- **Order date:** 1 Dec 2021
- **Citation:** TCN-2021-NCLT-00311
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sidhivinayak-financial-services-limited-15421880

## Summary

### Background

The case pertains to the voluntary liquidation of Sidhivinayak Financial Services Limited under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company, incorporated on 16.05.2012, aimed to operate as a Non-banking Financial Institution but failed to obtain necessary approval from the Reserve Bank of India, preventing it from commencing business operations. The company's board of directors passed a resolution for voluntary liquidation on 12.01.2019, which was subsequently approved by the members. The liquidator, Mr. Mast Ram, initiated the liquidation process, informed relevant authorities, and made public announcements. The company had no creditors, and the liquidator distributed the assets and closed the liquidation account.

## Facts

Sidhivinayak Financial Services Limited was incorporated on 16.05.2012 with the intention of operating as a Non-banking Financial Institution (NBFC). However, it failed to secure the necessary approval from the Reserve Bank of India (RBI), preventing it from commencing its business operations. The company's board of directors passed a resolution for voluntary liquidation on 12.01.2019, which was subsequently approved by the members in an Extra Ordinary General Meeting (EOGM) held on 24.01.2019. Mr. Mast Ram was appointed as the liquidator. The liquidator informed the Registrar of Companies (RoC) and the Insolvency and Bankruptcy Board of India (IBBI) about the commencement of the liquidation process. Public announcements were made in the 'Financial Express' and

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation of Sidhivinayak Financial Services Limited under …

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

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**Reasoning:** The court considered the reports from the IBBI, RoC, and Income Tax Department, all of

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**Interpretation:** Section 59 of the IBC provides a mechanism for companies to voluntarily

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**Application:** In this case, Sidhivinayak Financial Services Limited met the requirements for

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Respondents:** Sidhivinayak…

## Timeline

- **2012-05-16 — Company Incor…**: Sidhivinayak Financial…
- **2019-01-12 — Board Resolution for…**: The company's board of directors passed a…

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