# In the matter of Kellys Benefit Nidhi Limited

> NCLT judgment dated 2024-09-12. Citation: TCN-2024-NCLT-00608. 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-00608
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kellys-benefit-nidhi-limited-b7bf9a33

## 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, and the directors decided to wind up its affairs. A board meeting was held on March 15, 2023, to consider voluntary winding up, and the shareholders approved the same in an Annual General Meeting on April 28, 2023. Mr. L. Chandrasekar was appointed as the 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 December 9, 1987, under the Companies Act, 1956. The company's main objective was to encourage thrift and provide financial assistance to its members. The authorized share capital of the company was Rs. 15,00,000, divided into 14,00,000 equity shares of Rs. 1 each and 1,00,000 non-cumulative redeemable preference shares of Rs. 1 each. The issued, subscribed, and paid-up capital was Rs. 11,79,280, divided into 11,79,280 equity shares of Rs. 1 each fully paid up. The company ceased business operations in recent years, and the directors decided to wind up its affairs. A board meeting was held on March 15, 2023, to consider voluntary winding up, and the shareholders approved the same in an

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## Issues and analysis

### Issue 1: Whether the affairs of the Company have been completely wound up and the assets of the Petitioner …

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

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**Reasoning:** The Tribunal examined the submissions made by the Learned Counsel for the Petitioner and

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**Interpretation:** Section 59(8) of the IBC, 2016, empowers the Tribunal to dissolve a company

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**Application:** In this case, the Tribunal found that the affairs of M/s. Kellys Benefit Nidhi

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Mr.Chandr…
- **Respondents:** M/s. Kellys…
- **Advocates:** R. Sathish…

## Timeline

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

## 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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