# In the matter of Candid Mercantile & Credit Private Limited

> NCLT judgment dated 2024-01-30. Citation: TCN-2024-NCLT-02851. The case pertains to a petition filed under Section 59 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Jan 2024
- **Citation:** TCN-2024-NCLT-02851
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/candid-mercantile-credit-private-limited-12378bd8

## Summary

### Background

The case pertains to a petition filed under Section 59 of the Insolvency & Bankruptcy Code, 2016, for the voluntary liquidation of Candid Mercantile & Credit Private Limited. The company was incorporated on 29.01.1991 and aimed to deal in immovable properties. However, due to limited business and running out of funds, the management decided to liquidate the company voluntarily. The Board of Directors resolved to liquidate the company on 14.07.2023. The directors declared that the company had no assets, debts, or liabilities and was not being liquidated to defraud anyone. The company also passed a special resolution on 08.08.2023 to liquidate voluntarily and appointed Mr. Birendra Kumar Tripathi as the liquidator.

## Facts

Candid Mercantile & Credit Private Limited (CIN: U70109WB1991PTC050779) was incorporated on 29.01.1991 with the objective of dealing in immovable properties. The company's registered office is located in Kolkata, West Bengal. Due to limited business activities and financial constraints, the management decided to initiate voluntary liquidation proceedings. The Board of Directors passed a resolution on 14.07.2023 to liquidate the company under Section 59 of the Insolvency & Bankruptcy Code, 2016. The directors declared that the company had no assets, debts, or liabilities and was not being liquidated to defraud anyone. The company's authorized share capital is Rs. 30,00,000/-. Mr. Birendra Kumar Tripathi was appointed as the liquidator. A special resolution was

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## Issues and analysis

### Issue 1: Whether the Corporate Person has complied with the provisions of Section 59 of the Insolvency & …

**Ratio:** Section 59 of the Insolvency & Bankruptcy Code, 2016, along with the Insolvency and

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**Reasoning:** The court examined the documents submitted, including the Declaration of Solvency,

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**Interpretation:** Section 59 is interpreted to ensure that the voluntary liquidation process is

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**Application:** In this case, the Corporate Person complied with the requirements of Section 59

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Respondents:** Candid Mercantile…

## Timeline

- **1991-01-29 — Incorporation of the…**: Candid Mercantile & Credit…
- **2023-07-14 — Board Resolution for…**: The Board of Directors resolved to liquidate the Corporate Person voluntarily under…

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