# In the matter of Sterling India Private Limited C.P.(IB)-840/ND/2020

> NCLT judgment dated 2020-11-23. Citation: TCN-2020-NCLT-00222. The application was filed by the Liquidator under section 59(7) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Nov 2020
- **Citation:** TCN-2020-NCLT-00222
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sterling-india-private-limited-cpib-840nd2020-81f2bcb0

## Summary

### Background

The application was filed by the Liquidator under section 59(7) of the Insolvency and Bankruptcy Code, 2016 (Code) read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (IBBI Regulations) seeking dissolution of M/S Sterling Fincap Private Limited. The company is a private limited company incorporated on 04.04.1988 under the provisions of Companies Act, 1956. The Board convened a meeting on 10.01.2020 and passed a resolution to initiate voluntary winding up of the Company and for appointing a Liquidator. A declaration of Solvency dated 10.01.2020 was signed by the Director. The e-Form MGT-14 was filed with the Registrar of Companies, NCT of Delhi. As per declaration of solvency, the Company do not have any creditors.

## Facts

M/S Sterling Fincap Private Limited sought voluntary liquidation under section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company was incorporated on 04.04.1988. A resolution was passed on 10.01.2020 to initiate voluntary winding up and appoint a liquidator, as the company had not conducted business for several years. A declaration of solvency was signed on 10.01.2020, stating the company had no creditors. Mr. Rajeev Bhambri was appointed as the Liquidator on 13.01.2020. The liquidator published notifications in newspapers on 14.01.2020 and 15.01.2020. The liquidator intimated the Income Tax Authority on 28.01.2020. The nomenclature of the bank account was changed on 20.02.2020. The liquidator submitted a preliminary report on 26.02.2020 and a final report

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation under section 59(7) of the Insolvency and …

**Ratio:** Section 59(7) of the Insolvency and Bankruptcy Code, 2016 allows for the voluntary

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**Reasoning:** The court reviewed the steps taken by the liquidator, including the filing of necessary

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**Interpretation:** Section 59(7) provides a mechanism for a solvent company to voluntarily wind up

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

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## Parties

- **Judges:** DEEPTI M…; SHRI, NARENDER…
- **Appellants:** Rajeev Ba…
- **Respondents:** M/S STERLING…

## Timeline

- **1988-04-04 — Company Incor…**: M/S Sterling Fincap Private…
- **2020-01-10 — Board Meeting and…**: A resolution was passed to initiate voluntary winding up of the Company and for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 59(7) — Voluntary liquidation of corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-59)

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