# In the matter of Medreich Life Care Limited

> NCLT judgment dated 2024-07-09. Citation: TCN-2024-NCLT-01040. The petition was filed by the Petitioner under Rule 40 (2) of the IBBI (Voluntary Liquidation…

- **Court:** NCLT
- **Order date:** 9 Jul 2024
- **Citation:** TCN-2024-NCLT-01040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/medreich-life-care-limited-6e81ef60

## Summary

### Background

The petition was filed by the Petitioner under Rule 40 (2) of the IBBI (Voluntary Liquidation Process) Regulations 2017 read with Section 59 and Section 60 (5) of the IBC, seeking to allow the application and pass an order for the cessation/suspension of the liquidation process of M/s.Medreich Life Care Limited. The shareholders unanimously approved the initiation of the valuation proceedings under Section 59 of the IBC 2016 in respect of the Company in an Extra Ordinary General Meeting held on 13.12.2023. The petitioner seeks to suspend the liquidation proceedings.

## Facts

Medreich Life Care Limited initiated voluntary liquidation proceedings under Section 59 of the IBC 2016. An Extra Ordinary General Meeting was held on 13.12.2023, where shareholders approved the initiation of valuation proceedings. The assets of the corporate person were deemed insufficient to cover liabilities. A special resolution for voluntary liquidation had already been passed. The petitioner sought the Tribunal's leave to suspend the liquidation proceedings, as the resolution could not be withdrawn without it. The petition was filed under Rule 40 (2) of the IBBI (Voluntary Liquidation Process) Regulations 2017 read with Section 59 and Section 60 (5) of the IBC.

## Issues and analysis

### Issue 1: Whether the Tribunal should grant leave to suspend the voluntary liquidation proceedings of M/s. …

**Ratio:** The Tribunal has the power to suspend voluntary liquidation proceedings under Section 59

…

**Reasoning:** The court reasoned that since the special resolution for voluntary liquidation was

…

**Interpretation:** Section 59 of the IBC 2016 and Rule 40 (2) of the IBBI (Voluntary Liquidation

…

**Application:** The ratio and reasoning were applied to the specific facts of the case, where

…

## Parties

- **Judges:** K. Bi…; Manoj Kumar…
- **Respondents:** Medreich Life…

## Timeline

- **2023-12-13 — Extra Ordinary General…**: Shareholders unanimously approved the initiation of valuation proceedings under Section…
- **2024-07-09 — Order Del…**: Order delivered on 09.07.2024 regarding the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/medreich-life-care-limited-6e81ef60