# In the matter of AFA Exports Private Limited

> NCLT judgment dated 2023-09-12. Citation: TCN-2023-NCLT-01671. The case pertains to an application filed by the Voluntary Liquidator, Mr. Brij Nandan Kalra,…

- **Court:** NCLT
- **Order date:** 12 Sept 2023
- **Citation:** TCN-2023-NCLT-01671
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/afa-exports-private-limited-2ea47e45

## Summary

### Background

The case pertains to an application filed by the Voluntary Liquidator, Mr. Brij Nandan Kalra, on behalf of AFA Exports Private Limited, seeking the dissolution of the company under Section 59 of the Insolvency & Bankruptcy Code, 2016, read with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. AFA Exports Private Limited was incorporated on November 2, 2004, with the object of carrying on business as an agent, broker, distributor, demonstrator, artist, importer, exporter, buyer, seller, stockiest, consultant, or collaborator dealing in various types of handicrafts. The company's authorized share capital was Rs. 1,00,000, divided into 10,000 equity shares of Rs. 10 each. The company was not successfully carrying on

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## Facts

AFA Exports Private Limited was incorporated on November 2, 2004, under the Companies Act, 1956, with the objective of engaging in various business activities related to handicrafts. The company's authorized share capital was Rs. 1,00,000. Due to the lack of business prospects and financial resources, the Board of Directors decided to close down the company and initiate voluntary liquidation. A declaration of solvency was made on June 13, 2021. Mr. Brij Nandan Kalra was appointed as the liquidator. The liquidator made a public announcement of the commencement of liquidation and opened a bank account for realization and payment to creditors and members. Claims were received from creditors, and a preliminary report was submitted. The liquidator intimated the commencement

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## Issues and analysis

### Issue 1: Whether the application for dissolution of AFA Exports Private Limited under Section 59 of the …

**Ratio:** Section 59(8) of the Insolvency and Bankruptcy Code, 2016, empowers the Adjudicating

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

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**Interpretation:** Section 59 of the IBC provides a mechanism for voluntary liquidation of a

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**Application:** In this case, the liquidator had complied with the statutory provisions of

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; RAHUL BHA…
- **Appellants:** AFA Exports Pvt.…
- **Respondents:** AFA Exports…; Registrar of…
- **Advocates:** Kunal S…; Zehra…; +1 more

## Timeline

- **2004-11-02 — Incorporation of AFA…**: AFA Exports Private Limited was incorporated under the provisions of the Companies Act,…
- **2021-06-10 — Board of Directors…**: The Board of Directors of the Company considered the matter and was of the opinion that…

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