# In the matter of Fairmoney Financial Services Private Limited

> NCLT judgment dated 2025-03-04. Citation: TCN-2025-NCLT-00407. The case pertains to the voluntary liquidation of M/s Fairmoney Financial Services Private…

- **Court:** NCLT
- **Order date:** 4 Mar 2025
- **Citation:** TCN-2025-NCLT-00407
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fairmoney-financial-services-private-limited-4b13ecf5

## Summary

### Background

The case pertains to the voluntary liquidation of M/s Fairmoney Financial Services Private Limited under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company was incorporated on 16.06.2020. The Board of Directors decided to voluntarily liquidate the company on 05.10.2023, executing a Declaration of Solvency. The company appointed Mr. Ravindranath Narayana Rao as the Liquidator. The liquidator followed the procedures as per the IBBI (Voluntary Liquidation Process) Regulations, 2017, including making public announcements, preparing preliminary reports, and auditing the accounts. The ROC, Karnataka, filed a status report stating that no enquiry/inspection/complaint/legal action is pending against the Applicant Company.

## Facts

M/s Fairmoney Financial Services Private Limited, incorporated on 16.06.2020, sought voluntary liquidation due to business losses and lack of future prospects. The authorized share capital was Rs. 2,50,00,000, with issued, subscribed, and paid-up capital of Rs. 2,18,25,000. The company's main object was finance consultancy. On 05.10.2023, the Board decided to voluntarily liquidate and executed a Declaration of Solvency. Mr. Ravindranath Narayana Rao was appointed as the Liquidator. The Liquidator complied with IBBI regulations, making public announcements and submitting reports. The last date for claim submission was 09.11.2023, but no claims were received. The ROC, Karnataka, reported no pending legal actions against the company. The Liquidator submitted a Final

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## Issues and analysis

### Issue 1: Whether the Applicant Company, M/s Fairmoney Financial Services Private Limited, should be …

**Ratio:** Section 59(8) of the IBC, 2016, empowers the NCLT to order the dissolution of a company

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**Reasoning:** The NCLT examined the submissions made by the Ld. Counsel for the Applicant and perused

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**Interpretation:** Section 59(8) provides the legal basis for the NCLT to order the dissolution of

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**Application:** In this case, the NCLT found that the affairs of M/s Fairmoney Financial

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## Parties

- **Judges:** K. Bi…; RAVICHANDRAN…
- **Respondents:** M/s Fairmoney…

## Timeline

- **2020-06-16 — Company Incor…**: M/s Fairmoney Financial Services…
- **2023-10-05 — Board Decision for…**: The Board of Directors decided to voluntarily liquidate the Company and executed a…

## 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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