# In the matter of Afchem Distribution Private Limited CP(IB)171(CHE)-2022

> NCLT judgment dated 2023-06-12. Citation: TCN-2023-NCLT-02990. The case pertains to a Company Application filed by the Liquidator of Afchem Distribution…

- **Court:** NCLT
- **Order date:** 12 Jun 2023
- **Citation:** TCN-2023-NCLT-02990
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/afchem-distribution-private-limited-cpib171che-2022-287dae88

## Summary

### Background

The case pertains to a Company Application filed by the Liquidator of Afchem Distribution Private Limited, seeking dissolution of the company under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (IBC). The company was incorporated on 02.05.2017 and its main object was to deal with chemicals. The company had not been carrying on any business for the preceding two years and was not earning any profits except income from investments. The Board of Directors proposed to close down the company by way of voluntary liquidation, and a proposal to liquidate the company voluntarily was passed on 20.07.2021.

## Facts

Afchem Distribution Private Limited was incorporated on 02.05.2017 with the primary objective of dealing in chemicals. The company ceased active business operations for two years prior to the application and generated income solely from investments. Due to a lack of business prospects and long-term financial resources, the Board of Directors decided to pursue voluntary liquidation. A resolution to liquidate the company was passed on 20.07.2021, in accordance with Section 59 of the Insolvency and Bankruptcy Code, 2016. The Annual General Meeting of the Shareholders of the Company which was held on 23.07.2021 resolved to appoint the Applicant herein to act as a liquidator for conducting voluntary liquidation process in relation to the Company under Section 59 of IBC,

…

## Issues and analysis

### Issue 1: Whether the Company Application filed by the Liquidator for the dissolution of Afchem Distribution …

**Ratio:** Section 59(8) of the IBC, 2016, empowers the court to order the dissolution of a company

…

**Reasoning:** The court examined the submissions made by the Liquidator and the documents annexed to

…

**Interpretation:** Section 59 of the IBC outlines the process for voluntary liquidation of a

…

**Application:** Based on the evidence presented, the court determined that the conditions under

…

## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** Ms.Bhagyalakshmi.B…
- **Respondents:** Afchem Distributio…

## Timeline

- **2017-05-02 — Company Incor…**: Afchem Distribution Private…
- **2021-07-20 — Board Reso…**: The Board of Directors passed a proposal…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/afchem-distribution-private-limited-cpib171che-2022-287dae88