# In the matter of Colourful Eco Park Limited CP-IB-77(CHE)-2021

> NCLT judgment dated 2023-01-20. Citation: TCN-2023-NCLT-04967. The case pertains to a Company Petition filed by the Liquidator of M/s. Colourful Eco Park…

- **Court:** NCLT
- **Order date:** 20 Jan 2023
- **Citation:** TCN-2023-NCLT-04967
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/colourful-eco-park-limited-cp-ib-77che-2021-131c140b

## Summary

### Background

The case pertains to a Company Petition filed by the Liquidator of M/s. Colourful Eco Park Limited, seeking dissolution of the company under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (IBC). The company was unable to commence its projects due to changes in Government policies and other reasons, leading to a Board meeting on 30.06.2020 to consider winding up and voluntary liquidation. An Extraordinary General Body Meeting was held on 08.07.2020, where it was resolved to appoint the Applicant as liquidator.

## Facts

M/s. Colourful Eco Park Limited was incorporated on 08.08.2012 under the Companies Act, 1956, with the objective of developing integrated textile parks. Due to changes in Government policies and other reasons, the company was unable to commence its projects. A Board meeting was held on 30.06.2020 to consider winding up and voluntary liquidation. An Extraordinary General Meeting of the Shareholders took place on 08.07.2020, where it was unanimously resolved to appoint the Applicant as a liquidator. The liquidator conducted the voluntary liquidation process in accordance with the IBBI (Voluntary Liquidation Process) Regulations, 2017. The liquidation cost was Rs.4,77,632/-, and a sum of Rs.1,62,08,598/- was paid to the Equity Shareholders. The liquidator has not received

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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 NCLT to order the dissolution of a corporate

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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 NCLT to

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**Application:** The court applied the ratio of Section 59(8) of the IBC, 2016, to the specific

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## Parties

- **Judges:** (RETD.) RAMALINGAM…; SAMEER…
- **Appellants:** M.D. Sel…
- **Respondents:** Colourful Eco…
- **Advocates:** S. Sathya…

## Timeline

- **2012-08-08 — Company Incor…**: The Applicant Company was incorporated under…
- **2020-06-30 — Board Me…**: A Board meeting was held to consider winding up…

## 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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