# In the matter of AFA Exports Private Limited

> NCLT judgment dated 2023-09-12. Citation: TCN-2023-NCLT-01708. 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-01708
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/afa-exports-private-limited-ef5644a6

## 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, collaborator, or otherwise dealing in various types of fashion shapes and sizes of handicrafts. The company's authorized share capital is Rs. 1,00,000, divided into 10,000 equity shares of Rs. 10 each. The company

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## Facts

AFA Exports Private Limited, incorporated on November 2, 2004, sought voluntary liquidation due to unsuccessful business operations and lack of financial viability. The company's authorized share capital was Rs. 1,00,000. The Board of Directors decided to close down the company, and a declaration of solvency was made on June 13, 2021. Mr. Brij Nandan Kalra was appointed as the liquidator. A public announcement of the liquidation was made on June 24, 2021. The liquidator opened a bank account for realization and payment to creditors and members. Claims were received from creditors by July 24, 2021. The liquidator submitted a preliminary report on August 9, 2021. E-payments were made to creditors. The liquidator intimated the commencement of liquidation to the Income Tax

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation of …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, provides the framework for

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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 allows a solvent company to initiate voluntary

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**Application:** In this case, the Adjudicating Authority found that AFA Exports Private Limited

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; RAHUL BHA…
- **Appellants:** AFA Exports Pvt.…
- **Respondents:** AFA Exports…; Registrar of…

## Timeline

- **2004-11-02 — Company Incor…**: AFA Exports Private…
- **2021-06-10 — Board Me…**: The Board of Directors decided to close down the company due to non-availability of…

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