# In the atter of Bhuvanaa Fabric Agencies Private Limited

> NCLT judgment dated 2023-09-25. Citation: TCN-2023-NCLT-01488. The case pertains to the voluntary liquidation of M/s. Bhuvanaa Fabric Agencies Private Limited…

- **Court:** NCLT
- **Order date:** 25 Sept 2023
- **Citation:** TCN-2023-NCLT-01488
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/in-the-atter-of-bhuvanaa-fabric-agencies-private-limited-88500d2f

## Summary

### Background

The case pertains to the voluntary liquidation of M/s. Bhuvanaa Fabric Agencies Private Limited under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company was incorporated on June 10, 1985, and ceased business activities in 2015. The Board of Directors passed a resolution for voluntary liquidation on February 5, 2022. The shareholders approved the voluntary liquidation in an Extra-ordinary General Meeting held on March 3, 2022, and appointed the Applicant as the Liquidator.

## Facts

M/s. Bhuvanaa Fabric Agencies Private Limited, incorporated on June 10, 1985, sought voluntary liquidation under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company ceased business activities in 2015. A resolution for voluntary liquidation was passed by the Board of Directors on February 5, 2022, and approved by shareholders on March 3, 2022. The company had an authorized capital of Rs.50,00,000/- divided into 5,000 Equity Shares of Rs.1000/- each, with a Paid-Up Capital of Rs. 30,10,000 divided into 3010 equity shares of Rs.1000 each. The company's objective was purchasing and selling raw cotton, processed cotton, cotton thread, cotton fabrics, synthetic thread, synthetic fibre, synthetic cloth, polyester cloth, and cotton & synthetic readymade

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## Issues and analysis

### Issue 1: Whether the affairs of the Company …

**Ratio:** Section 59(8) of the IBC, 2016, allows the court to order the dissolution of a company if

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**Reasoning:** The court examined the submissions and documents and found that the affairs of the

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**Interpretation:** The court interpreted 'completely wound up' to mean that all business

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**Application:** The court applied this interpretation to the facts, noting that the company had

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** A.R.Ramasubramania…
- **Respondents:** Bhuvanaa Fabric…
- **Advocates:** V.Srini…

## Timeline

- **1985-06-10 — Company Incor…**: Bhuvanaa Fabric Agencies…
- **2015-01-01 — Business Activities…**: The company stopped its…

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