# In the matter of Malabar Organics Ltd.

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01066. The case pertains to a Company Petition filed under Section 59 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/malabar-organics-ltd-7a47a0dd

## Summary

### Background

The case pertains to a Company Petition filed under Section 59 of the Insolvency & Bankruptcy Code, 2016, for the voluntary liquidation of Malabar Organics Ltd. The company, incorporated in 1986, ceased business operations approximately 20 years prior to the petition. Due to the unavailability of business prospects and long-term financial resources, the Board of Directors approved a proposal for voluntary liquidation, subject to member approval. The company had been primarily involved in the manufacture of pharmaceuticals, medicals, chemical preparations, compounds, drugs, and formulations. The petition seeks the dissolution of the company after the completion of the liquidation process.

## Facts

Malabar Organics Ltd., incorporated on October 16, 1986, ceased business operations approximately 20 years prior to the petition. The company's primary business was the manufacture of pharmaceuticals, medicals, chemical preparations, compounds, drugs, and formulations. Due to the unavailability of business prospects and long-term financial resources, the Board of Directors approved a proposal for voluntary liquidation on February 18, 2023, subject to member approval. The members passed a Special Resolution on March 17, 2023, to liquidate the company voluntarily and appointed CS L Sarumathy as the liquidator. The liquidator made public announcements seeking claims from stakeholders. Claims from operational creditors were received and payments were made. The remaining

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## Issues and analysis

### Issue 1: Whether the voluntary liquidation process of Malabar Organics Ltd. was conducted in compliance with …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, along with the IBBI (Voluntary

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**Reasoning:** The Tribunal examined the steps taken by the liquidator, including the declaration of

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

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

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## Parties

- **Judges:** SHRI. H.V.SUBBA…; Shri. Shyam Babu…; +1 more
- **Respondents:** Malabar Organics…

## Timeline

- **1986-10-16 — Incorporation of…**: Malabar Organics Ltd.…
- **2023-02-18 — Board Approval for…**: The Board of Directors approved the proposal for voluntary liquidation of the Company…

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