# In the matter of Diam Circle Manufacturing Private Limited CP (IB) 200-MB-C-I-2022

> NCLT judgment dated 2023-02-09. Citation: TCN-2023-NCLT-04677. The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Feb 2023
- **Citation:** TCN-2023-NCLT-04677
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/diam-circle-manufacturing-private-limited-cp-ib-200-mb-c-i-2022-3bf2df58

## Summary

### Background

The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, for the voluntary liquidation of Diam Circle Private Limited. The company, incorporated on 10.01.1996, discontinued business operations in 2015-2016 due to market difficulties. The Board of Directors resolved to wind up the company, believing it to be in the best interest of stakeholders. A resolution was passed to voluntarily liquidate the Corporate Person under provisions of S. 59 of the Code r/w the Regulation and proposed appointment of the Applicant to act as Liquidator for the Corporate Person in its Meeting held on 27.04.2020.

## Facts

Diam Circle Private Limited, incorporated on 10.01.1996, filed a petition for voluntary liquidation under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company ceased business operations in 2015-2016 due to market difficulties. The Board of Directors resolved to wind up the company on 27.04.2020. The company's authorized share capital was ₹15,00,00,000/-, and the issued, subscribed, and paid-up share capital was ₹1,46,63,600. The directors furnished a Solvency Certificate stating the company could pay its debts in full and was not being liquidated to defraud anyone. The resolution was filed with the Registrar of Companies on 13.07.2020. Members passed Special Resolutions on 02.05.2020 to voluntarily liquidate the company. The liquidator made a public

…

## Issues and analysis

### Issue 1: Whether the affairs of the Corporate Person have been duly and completely wound-up under the …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, read with the relevant

…

**Reasoning:** The NCLT examined the submissions and documents provided by the liquidator, including the

…

**Interpretation:** The provisions of Section 59 and related regulations are interpreted to ensure

…

**Application:** In this case, the NCLT found that the liquidator had complied with all the

…

## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Subodh B G…
- **Respondents:** Diam Circle…

## Timeline

- **1996-01-10 — Incorporation of Diam…**: Diam Circle Private Limited was…
- **2015-01-01 — Discontinuation of…**: Diam Circle Private Limited discontinued its business operations due to market…

## 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/diam-circle-manufacturing-private-limited-cp-ib-200-mb-c-i-2022-3bf2df58