# In the matter of Kellys Benefit Nidhi Limited

> NCLT judgment dated 2024-09-12. Citation: TCN-2024-NCLT-00611. The case pertains to a Company Petition filed by the Liquidator for the voluntary liquidation…

- **Court:** NCLT
- **Order date:** 12 Sept 2024
- **Citation:** TCN-2024-NCLT-00611
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kellys-benefit-nidhi-limited-ae076f05

## Summary

### Background

The case pertains to a Company Petition filed by the Liquidator for the voluntary liquidation of M/s. Kellys Benefit Nidhi Limited, an unlisted public company. The company was incorporated in 1987 with the objective of encouraging thrift and providing financial assistance to its members. However, in recent years, the company ceased business operations, leading the directors to decide on voluntary liquidation. A board meeting on 2023-03-15 resolved to wind up the company's affairs, followed by a shareholder resolution on 2023-04-28 to appoint a liquidator under Section 59 of the Insolvency and Bankruptcy Code (IBC), 2016.

## Facts

M/s. Kellys Benefit Nidhi Limited, an unlisted public company, was incorporated on 1987-12-09 under the Companies Act, 1956. The company's main objective was to encourage thrift and provide financial assistance to its members. Due to the company not carrying out business operations in recent years, the directors decided to wind up the affairs of the company. A board meeting was held on 2023-03-15 to consider voluntary winding up, and the shareholders approved the voluntary liquidation on 2023-04-28, appointing Mr. L. Chandrasekar as the liquidator. The authorized share capital of the company is Rs. 15,00,000, and the issued, subscribed, and paid-up capital is Rs. 11,79,280. The company's assets were estimated at Rs. 2,31,31,785, primarily in cash and at the bank. The

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## Issues and analysis

### Issue 1: Whether the voluntary liquidation process of M/s. Kellys Benefit Nidhi Limited was conducted in …

**Ratio:** Section 59 of the IBC, 2016, read with the IBBI (Voluntary Liquidation Process)

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**Reasoning:** The Tribunal examined the compliances performed by the liquidator, including the

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**Interpretation:** Section 59 of the IBC and the associated regulations are interpreted to ensure

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**Application:** The Tribunal found that the liquidator had complied with the requirements of

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Chandra…
- **Respondents:** M/s. Kellys…

## Timeline

- **1987-12-09 — Company Incor…**: M/s. Kellys Benefit Nidhi Limited…
- **2023-03-15 — Board Me…**: Board meeting held to consider winding up the affairs of the company through voluntary…

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