# In the matter of CCFID Finance Private Limited

> NCLT judgment dated 2023-12-13. Citation: TCN-2023-NCLT-00260. The case pertains to a Company Petition filed by the Liquidator of CCFID Finance Private…

- **Court:** NCLT
- **Order date:** 13 Dec 2023
- **Citation:** TCN-2023-NCLT-00260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ccfid-finance-private-limited-0d26efed

## Summary

### Background

The case pertains to a Company Petition filed by the Liquidator of CCFID Finance Private Limited, seeking dissolution of the company under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company was incorporated on 27.03.2019, with the main object of carrying on the business of Micro Finance. However, the Board of Directors passed a resolution for voluntary liquidation on 05.12.2022, as the company was unable to meet the revised Net Owned Funds limit for NBFCs set by the RBI. The shareholders approved the appointment of the Applicant as the Liquidator in an Extra-ordinary General Meeting held on 05.12.2022.

## Facts

CCFID Finance Private Limited sought dissolution under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. Incorporated on 2019-03-27, the company aimed to operate as a Micro Finance institution. However, due to revised RBI regulations increasing the Net Owned Funds limit for NBFCs, the company's Board of Directors resolved for voluntary liquidation on 2022-12-05. Shareholders approved the liquidator's appointment on 2022-12-05. The liquidator complied with IBBI regulations, distributing funds to stakeholders, including shareholders, employees, and the government. The liquidator made payments including liquidation costs as per the provisions of Section 53(1) of IBC, 2016. The company's affairs were completely wound up, and assets liquidated. The liquidator

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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 Applicant …

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

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**Reasoning:** The court examined the submissions made by the Learned Counsel for the Applicant and

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**Interpretation:** Section 59(8) of the IBC, 2016, provides the legal basis for the court to

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**Application:** Based on the evidence presented, the court determined that CCFID Finance

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** R. Bhu…
- **Respondents:** CCFID Finance…

## Timeline

- **2019-03-27 — Company Incor…**: CCFID Finance Private…
- **2022-12-05 — Board Resolution for…**: Board of Directors passed a resolution for…

## 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)

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