# In the matter of Aavi Cottex Private Limited

> NCLT judgment dated 2023-07-21. Citation: TCN-2023-NCLT-02382. The case pertains to the voluntary liquidation of M/s. Aavi Cottex Private Limited under…

- **Court:** NCLT
- **Order date:** 21 Jul 2023
- **Citation:** TCN-2023-NCLT-02382
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aavi-cottex-private-limited-601b7420

## Summary

### Background

The case pertains to the voluntary liquidation of M/s. Aavi Cottex Private Limited under Section 59 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Regulation 38 of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. The company's business was severely affected by the COVID-19 pandemic, leading the Board of Directors to resolve to liquidate the company. A liquidator, Mr. Keyur J Shah, was appointed, and the necessary procedures were followed, including public announcements, submission of reports, and distribution of assets to stakeholders.

## Facts

M/s. Aavi Cottex Private Limited (CIN: U17100GJ2013PTC075107) was incorporated on 16.05.2013. The company's business was severely affected by the first and second COVID-19 waves. An Extra Ordinary General Meeting (EOGM) was held on 18.01.2022, where a special resolution was passed to voluntarily liquidate the company and appoint Mr. Keyur J Shah as the liquidator. The liquidator made public announcements in newspapers on 21.01.2022, calling upon stakeholders to submit their claims. The liquidation commencement date was 18.01.2022. The liquidator received only one claim from an operational creditor, which was paid in full. A separate bank account was opened on 03.02.2022 for the liquidation process. Distributions were made to the equity shareholders. The final report

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Person, M/s Aavi Cottex Private Limited, …

**Ratio:** Section 59(8) of the IBC, 2016 allows the Adjudicating Authority to order that the

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**Reasoning:** The Adjudicating Authority considered the facts and circumstances, including the

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**Interpretation:** Section 59(8) provides the legal basis for the Adjudicating Authority to

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**Application:** Based on the liquidator's actions and the absence of objections, the

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## Parties

- **Judges:** SHAMMI…; Ajai Das Me…
- **Respondents:** M/s. Aavi Cottex…

## Timeline

- **2013-05-16 — Incorporation of…**: M/s. Aavi Cottex Private…
- **2022-01-18 — EOGM and Special…**: An Extra Ordinary General Meeting (EOGM) was held, and a special resolution was passed to…

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