# In the matter of Metropolitan Leisure Homes Private Limited

> NCLT judgment dated 2024-05-06. Citation: TCN-2024-NCLT-01429. The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 6 May 2024
- **Citation:** TCN-2024-NCLT-01429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/metropolitan-leisure-homes-private-limited-95d4e725

## Summary

### Background

The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, seeking voluntary dissolution of Metropolitan Leisure Homes Private Limited and the discharge of the Liquidator from his duties. The company was incorporated in 2007 and resolved to wind up its operations voluntarily. The Board of Directors passed a resolution to liquidate the company, and a declaration of solvency was made. The members of the company approved the voluntary liquidation in an Extra-Ordinary General Meeting. The liquidator, Mr. Racharla Ramakrishna Gupta, took necessary steps, including obtaining creditor consent, making public announcements, opening a bank account, distributing stakeholders, intimating income tax authorities, and submitting

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## Facts

Metropolitan Leisure Homes Private Limited, incorporated on December 31, 2007, sought voluntary liquidation under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company's authorized share capital was Rs. 4,80,000, divided into 48,00,000 equity shares of Rs. 10 each. The issued, subscribed, and paid-up capital was Rs. 4,73,90,200, divided into 47,39,020 equity shares of Rs. 10 each. The Board of Directors resolved to wind up the company due to the sale of assets and a lack of desire to continue operations. A declaration of solvency was made by majority shareholding directors on January 12, 2023. The members approved voluntary liquidation in an Extra-Ordinary General Meeting on February 8, 2023, appointing Mr. Racharla Ramakrishna Gupta as the liquidator.

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## Issues and analysis

### Issue 1: Whether the voluntary liquidation process of Metropolitan Leisure Homes Private Limited was …

**Ratio:** Section 59(7) of the Insolvency and Bankruptcy Code, 2016, read with the Insolvency and

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**Reasoning:** The court reviewed the application and the steps taken by the Liquidator, including

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**Interpretation:** Section 59(7) of the IBC, 2016 provides the adjudicating authority the power to

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**Application:** The court applied the provisions of Section 59(7) of the IBC, 2016, to the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Racharla Ramakrish…
- **Respondents:** Metropolitan…; The Registrar of…

## Timeline

- **2007-12-31 — Company Incor…**: Metropolitan Leisure Homes Private Limited was…
- **2023-01-12 — Declaration of…**: Majority shareholding Directors made a…

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