# 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-04673. 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-04673
- **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-a2e51627

## 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 in 1996, discontinued its business operations in 2015-2016 due to market difficulties. The Board of Directors resolved to wind up the Corporate Person, and a liquidator, Shri Subodh B Gokhale, was appointed. The company complied with the provisions of the Code and Regulations, including furnishing a Solvency Certificate, filing resolutions with the Registrar of Companies, and making public announcements. The company had no creditors, and the shareholders filed claims. The liquidator prepared a Preliminary Report and a Final Report, made payments to stakeholders, and closed

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## Facts

Diam Circle Private Limited, with CIN: US1398MH1996PTC096116, filed a Company Petition for voluntary liquidation under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company was incorporated on 10.01.1996 under the Companies Act, 1956. The company discontinued its business operations in 2015-2016 due to market difficulties. The Authorised Share Capital of the Company is ₹15,00,00,000/-, and the issued, subscribed and paid-up share capital is ₹1,46,63,600. The Board of Directors resolved to wind up the Corporate Person on 27.04.2020, and the Members passed Special Resolutions on 02.05.2020. The company furnished a Solvency Certificate stating that it could pay its debts in full and was not being liquidated to defraud any person. The company filed

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## Issues and analysis

### Issue 1: Whether the voluntary liquidation process of Diam Circle Private Limited was conducted in …

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

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**Reasoning:** The court examined the steps taken by the Corporate Person, including the Board's

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**Interpretation:** Section 59 and related regulations outline the mandatory steps for voluntary

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**Application:** Diam Circle Private Limited followed all prescribed steps, including

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## Parties

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

## Timeline

- **1996-01-10 — Incorpor…**: Diam Circle Private Limited was…
- **2015-01-01 — Business Operations…**: Diam Circle Private Limited discontinued its business operations due to market…

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