# In the matter of Electrosteel Aviation Limited

> NCLT judgment dated 2024-05-09. Citation: TCN-2024-NCLT-01380. 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-01380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/electrosteel-aviation-limited-e322d1a9

## 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, and due to the non-availability of business prospects and long-term financial resources, the Board of Directors resolved to liquidate the affairs of the Corporate Person in a meeting held on July 15, 2021. The directors approved the declaration of insolvency and resolved to wind up the company under 'Members Voluntary winding up' at the Board meeting held on July 15, 2021. An Extraordinary General Meeting (EGM) was held on August 13, 2021, where a special resolution was passed to liquidate the Corporate Person voluntarily and to appoint Mr.

…

## Facts

Electrosteel Aviation Limited sought voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company, incorporated on March 23, 2010, faced financial difficulties due to a lack of business prospects and long-term financial resources. The Board of Directors resolved to liquidate the company on July 15, 2021. An Extraordinary General Meeting (EGM) on August 13, 2021, resulted in a special resolution to voluntarily liquidate and appoint Mr. Ajay Goel as the Liquidator. Public announcements were made on August 18, 2021, inviting claims. The Registrar of Companies, West Bengal, was notified on August 19, 2021. Claims were received on September 15 and 16, 2021. The liquidator opened a bank account. The final report indicated sufficient assets

…

## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation under Section 59 of the Insolvency and Bankruptcy …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, allows a corporate person to

…

**Reasoning:** The court considered the special resolution passed by the members of the Corporate

…

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

…

**Application:** In this case, Electrosteel Aviation Limited met the requirements of Section 59,

…

## Parties

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

## Timeline

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

---

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/electrosteel-aviation-limited-e322d1a9