# In the matter of Varam Capital Private Limited CP-1216-2019

> NCLT judgment dated 2020-07-09. Citation: TCN-2020-NCLT-01054. The case pertains to the voluntary liquidation of Varam Capital Private Limited, a Non-Banking…

- **Court:** NCLT
- **Order date:** 9 Jul 2020
- **Citation:** TCN-2020-NCLT-01054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varam-capital-private-limited-cp-1216-2019-7300bb73

## Summary

### Background

The case pertains to the voluntary liquidation of Varam Capital Private Limited, a Non-Banking Finance Company (NBFC). The company was originally incorporated as Karpaga Ganapathi Investments Private Limited and later changed its name. It obtained a Certificate of Registration from the Reserve Bank of India (RBI) to operate as an NBFC. Subsequently, the company transferred its business, assets, and liabilities to Dvara Kshetriya Gramin Financial Services Private Limited through a Business Transfer Agreement. Following the transfer, the company requested the RBI to cancel its NBFC license, which was accepted. The Board of Directors declared that the company had no debts or claims that could arise during liquidation. The members of the company passed a Special Resolution

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## Facts

Varam Capital Private Limited, originally Karpaga Ganapathi Investments Private Limited, was incorporated on 09.09.1991 and later renamed. It was a Non-Banking Finance Company (NBFC) with RBI registration. On 29.01.2019, it transferred all its business, assets, and liabilities to Dvara Kshetriya Gramin Financial Services Private Limited via a Business Transfer Agreement. Subsequently, the company requested the RBI to cancel its NBFC license, which was approved on 01.04.2019. The Board of Directors declared on 23.04.2019 that the company had no debts or claims. An Extraordinary General Meeting was held on 23.04.2019, where members passed a Special Resolution approving voluntary liquidation and appointed N.A. Srinivasan as Liquidator. The Liquidator notified the RoC and

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## Issues and analysis

### Issue 1: Whether the Petitioner Company has complied with the provisions of Section 59 of the Insolvency and …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, outlines the procedure for

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**Reasoning:** The NCLT examined the submissions made by the Learned Counsel for the Petitioner and

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**Interpretation:** Section 59 of the IBC provides a structured framework for voluntary

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**Application:** In this case, the company demonstrated compliance with Section 59 by obtaining

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Respondents:** Varam Capital…

## Timeline

- **1991-09-09 — Incorpor…**: The Petitioner Company was originally incorporated as Karpaga Ganapathi Investments…
- **2013-12-17 — RBI Regist…**: The Petitioner Company obtained a Certificate…

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