# In the matter of J.K. Lungie Handloom Private Limited

> NCLT judgment dated 2024-06-13. Citation: TCN-2024-NCLT-01164. The petition was filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, by…

- **Court:** NCLT
- **Order date:** 13 Jun 2024
- **Citation:** TCN-2024-NCLT-01164
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jk-lungie-handloom-private-limited-adda5208

## Summary

### Background

The petition was filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, by J.K.Lungie Handloom Private Limited, a corporate person, through its liquidator, Neeraj Kejriwal, to initiate voluntary liquidation proceedings. The corporate person complied with the necessary formalities and procedures for liquidation and filed the petition for dissolution under Section 59(7) of the Code. The corporate person was incorporated under the Companies Act, 1956, on March 30, 2007, and its business involved manufacturing, wholesaling, and retailing various textiles. The directors provided a declaration of solvency as per Section 59(3) of the IBC, verified by an affidavit on December 27, 2022.

## Facts

J.K.Lungie Handloom Private Limited (CIN: U18101WB2007PTC114908) initiated voluntary liquidation proceedings under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company was incorporated on March 30, 2007, under the Companies Act, 1956, and engaged in the textile business. The directors, including Jugal Kishore Ladha, Mamta Ladha, Santosh Devi Ladha, and Shanti Prakash Ladha, provided a declaration of solvency on December 27, 2022. A board meeting on January 9, 2023, discussed the voluntary liquidation, followed by an Extraordinary General Meeting (EGM) on January 23, 2023, where a resolution for liquidation was passed. Neeraj Kejriwal was appointed as the liquidator. A public announcement was made on January 26, 2023. The Registrar of Companies (RoC)

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## Issues and analysis

### Issue 1: Whether the Corporate Person, J.K.Lungie Handloom Private Limited, should be dissolved under …

**Ratio:** Section 59(7) of the Insolvency and Bankruptcy Code, 2016, allows for the dissolution of

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**Reasoning:** The court reasoned that the liquidator had followed all the necessary procedures as

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**Interpretation:** Section 59(7) is interpreted to mean that once a corporate person has fully

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**Application:** In this case, the court applied the ratio to the facts presented, noting that

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** J.K.Lungie…

## Timeline

- **2007-03-30 — Incorporation of…**: J.K.Lungie Handloom Private Limited was…
- **2022-12-27 — Declaration of…**: Directors provided a declaration of solvency as per Section 59(3) of the IBC, verified by…

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