# In the matter of Ashokmithra Capitals Private Limited

> NCLT judgment dated 2024-08-02. Citation: TCN-2024-NCLT-00885. The case pertains to the voluntary liquidation of M/s. Ashokmithra Capitals Private Limited,…

- **Court:** NCLT
- **Order date:** 2 Aug 2024
- **Citation:** TCN-2024-NCLT-00885
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ashokmithra-capitals-private-limited-79967d42

## Summary

### Background

The case pertains to the voluntary liquidation of M/s. Ashokmithra Capitals Private Limited, initiated under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company, incorporated on 2019-01-11, aimed to operate as a general finance company but could not commence business due to the rejection of its NBFC registration by the RBI. Consequently, the management decided to wind up the company's affairs in April 2022. The shareholders approved the voluntary liquidation in an Extraordinary General Meeting (EGM) on 2022-04-26, initially appointing Mr. S. Vijay Mahindhran as the liquidator. However, due to medical reasons, Mr. Mahindhran resigned on 2023-03-13, and Mr. Vasudevan Gopu was subsequently appointed as the liquidator on 2023-06-19. The company's authorized

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## Facts

M/s. Ashokmithra Capitals Private Limited, incorporated on 2019-01-11, aimed to operate as a general finance company. The company's application for NBFC registration was rejected by the RBI, leading the management to decide to wind up the company's affairs in April 2022. The authorized and issued paid-up capital was Rs. 2,25,00,000. An EGM on 2022-04-26 approved voluntary liquidation, initially appointing Mr. S. Vijay Mahindhran as liquidator. Due to medical reasons, Mr. Mahindhran resigned on 2023-03-13, and Mr. Vasudevan Gopu was appointed on 2023-06-19. The company's assets included bank balances and other current assets, while liabilities primarily consisted of share capital and reserves. The Tribunal sought clarification on the treatment of Rs. 4,35,309 in other

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## Issues and analysis

### Issue 1: Whether the affairs of the Company have been completely wound up and the assets of the Petitioner …

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

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**Reasoning:** The Tribunal examined the submissions made by the Liquidator, the documents annexed to

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**Interpretation:** Section 59(8) provides the legal basis for dissolving a company undergoing

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**Application:** In this case, the Tribunal applied Section 59(8) after determining that M/s.

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Mr.Vasudeva…
- **Respondents:** M/s. Ashokmithra…

## Timeline

- **2019-01-11 — Company Incor…**: M/s. Ashokmithra Capitals Private…
- **2022-04-01 — Decision to…**: The management decided to wind…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 59 — Voluntary liquidation of corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-59)

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