# In the matter of Electrosteel Aviation Limited

> NCLT judgment dated 2024-05-09. Citation: TCN-2024-NCLT-01384. The case pertains to an application filed under Section 59 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 May 2024
- **Citation:** TCN-2024-NCLT-01384
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/electrosteel-aviation-limited-45c44adb

## Summary

### Background

The case pertains to an application filed under Section 59 of the Insolvency and Bankruptcy Code, 2016, seeking voluntary liquidation and dissolution of Electrosteel Aviation Limited. The company was incorporated on March 23, 2010, as a public limited company. The Board of Directors resolved to liquidate the affairs of the Corporate Person due to non-availability of business prospects and long-term financial resources. The directors approved the declaration of insolvency and resolved to wind up the company under “Members Voluntary winding up”. A special resolution was passed to liquidate the Corporate Person voluntarily and to appoint Mr. Ajay Goel as the Liquidator.

## Facts

Electrosteel Aviation Limited sought voluntary liquidation under Section 59 of the IBC. The company was incorporated on March 23, 2010. The authorized share capital is Rs.5,00,00,000/-, and the issued, subscribed & paid-up capital is Rs.20,00,000/-. The company had not been carrying on any business for the past few years and was not earning profits except from investments. The Board of Directors resolved to liquidate the company on July 15, 2021. The directors approved the declaration of insolvency and resolved to wind up the company. The members passed a special resolution on August 13, 2021, to liquidate the company and appoint Mr. Ajay Goel as Liquidator. The requisite details were filed with the Registrar of Companies. A public announcement of the commencement

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation of Electrosteel Aviation Limited under Section 59 …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, allows for voluntary liquidation

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**Reasoning:** The court considered the facts presented, including the special resolution passed by the

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**Interpretation:** Section 59 provides a mechanism for a solvent corporate person to voluntarily

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**Application:** In this case, Electrosteel Aviation Limited complied with the requirements of

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Ajay G…
- **Respondents:** Electrosteel…

## Timeline

- **2010-03-23 — Company Incor…**: Electrosteel Aviation Limited was…
- **2021-07-15 — Board Reso…**: The Board of Directors resolved to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 59 — Voluntary liquidation of corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-59)

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