# In the matter of Entco Music Private Limited

> NCLT judgment dated 2024-01-05. Citation: TCN-2024-NCLT-03274. This case pertains to the voluntary liquidation of Entco Music Private Limited under Section 59…

- **Court:** NCLT
- **Order date:** 5 Jan 2024
- **Citation:** TCN-2024-NCLT-03274
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/entco-music-private-limited-6f0f2713

## Summary

### Background

This case pertains to the voluntary liquidation of Entco Music Private Limited under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company, incorporated on 24.04.2019, faced financial difficulties due to the pandemic, leading to the sale of its assets to Canvas Talent Pvt. Ltd. in December 2021. Consequently, the management decided to voluntarily wind up the company's operations. The members of the company passed a special resolution on 05.07.2022 to liquidate the company and appointed Mr. Sunil Gajanan Nanal as the liquidator.

## Facts

Entco Music Private Limited, incorporated on 24.04.2019, faced financial difficulties due to the pandemic. The company's authorized and paid-up share capital was ₹1,00,000/-. The company's primary business was event production, creative design, and music festivals. Due to the pandemic, the company incurred losses, leading to a slump sale agreement in December 2021, where most assets were sold to Canvas Talent Pvt. Ltd. On 05.07.2022, the company's members passed a special resolution to voluntarily liquidate the company and appointed Mr. Sunil Gajanan Nanal as the liquidator. The liquidator made a public announcement and informed relevant authorities. The only asset was a bank balance with HSBC Bank. The liquidator distributed the surplus amount to shareholders,

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## Issues and analysis

### Issue 1: Whether the Corporate Person has complied with the requisite formalities and procedure of …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, read with the IBBI (Voluntary

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**Reasoning:** The Petitioner submitted that the Corporate Person complied with the requisite

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

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**Application:** The court examined the liquidator's actions and found that they were in

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Respondents:** Entco Music…

## Timeline

- **2019-04-24 — Company Incor…**: Entco Music Private Limited was…
- **2021-12-01 — Slump Sale Ag…**: Majority of the assets of the Corporate…

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