# In the matter of Lithius Energy Private Limited CP (IB) No. 402-59-HDB-2022

> NCLT judgment dated 2023-06-14. Citation: TCN-2023-NCLT-02952. The case pertains to a Company Petition (CP(IB) No. 402/59/HDB/2022) filed under Section 59 of…

- **Court:** NCLT
- **Order date:** 14 Jun 2023
- **Citation:** TCN-2023-NCLT-02952
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lithius-energy-private-limited-cp-ib-no-402-59-hdb-2022-ed887593

## Summary

### Background

The case pertains to a Company Petition (CP(IB) No. 402/59/HDB/2022) filed under Section 59 of the Insolvency and Bankruptcy Code, 2016, read with the IBBI (Voluntary Liquidation) Regulations, 2017, for the voluntary liquidation of Lithius Energy Private Limited. The company, incorporated on 05.03.2018, sought to dissolve itself due to not carrying on any business as listed in its Memorandum of Association for the past two years and lacking sufficient financial resources. The Board of Directors had approved a Declaration of Solvency and passed a resolution for voluntary liquidation. The liquidator, Ms. Srilakshmi Purushotham, was appointed to oversee the liquidation process.

## Facts

Lithius Energy Private Limited, incorporated on 05.03.2018, filed a Company Petition (CP(IB) No. 402/59/HDB/2022) for voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company's primary objective was engineering development, including establishing engineering development centers for designing products used in automatic test equipment for semiconductor chips. However, the company had not been conducting any business as outlined in its Memorandum of Association for the past two years and lacked sufficient financial resources. The Board of Directors approved a Declaration of Solvency on 05.08.2021 and passed a resolution for voluntary liquidation. Ms. Srilakshmi Purushotham was appointed as the liquidator. A special resolution was

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation of Lithius Energy Private Limited under Section …

**Ratio:** Section 59(7) of the Insolvency and Bankruptcy Code, 2016, confers powers on the

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**Reasoning:** The Adjudicating Authority considered the fact that the Corporate Person had been

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**Interpretation:** Section 59 of the IBC provides a mechanism for a solvent corporate person to

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**Application:** The Adjudicating Authority, exercising its powers under section 59(7) of the

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## Parties

- **Judges:** TELAPROLU…; Shri. Chara…
- **Appellants:** M/s. Lithius…
- **Respondents:** Lithius Energy…; Registrar of…

## Timeline

- **2018-03-05 — Incorporation of the…**: Lithius Energy Private Limited was incorporated under the provisions of the Companies…
- **2021-08-05 — Board Approval for…**: The Board of Directors approved the Declaration of Solvency and passed a resolution for…

## 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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