# In the matter of Modular Mining Systems India Private Limited

> NCLT judgment dated 2024-05-01. Citation: TCN-2024-NCLT-01504. The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 May 2024
- **Citation:** TCN-2024-NCLT-01504
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/modular-mining-systems-india-private-limited-6897b481

## Summary

### Background

The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 38 of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, for the voluntary liquidation of M/s Modular Mining Systems India Private Limited. The company, incorporated in 2006, decided to wind up due to economic circumstances and market conditions in India. The Board of Directors resolved to voluntarily wind up the company in a meeting held on August 23, 2021. The directors furnished a declaration of solvency, affirming the company's ability to pay its debts. The members passed a special resolution on September 16, 2021, to liquidate the company voluntarily and appointed Mr. Milind Kasodekar as

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## Facts

M/s Modular Mining Systems India Private Limited (CIN: U72900PN2006FTC129077) was incorporated on 16.09.2006. The company's authorized share capital is Rs. 5,00,000, and the issued, subscribed, and paid-up share capital is Rs. 1,00,000. The company's primary business was sales installation and after-sales services in computerized mine management systems. The company has two foreign entities as shareholders: M/s Modular Mining Systems Inc. (99.9% shares) and M/s Modular Mining Systems Pty Limited (0.1% shares). The company decided to wind up voluntarily due to economic circumstances. A board meeting on 23.08.2021 resolved to wind up the company. The directors declared solvency. The members passed a special resolution on 16.09.2021 to liquidate the company and appointed

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation under Section 59(7) of the Insolvency and …

**Ratio:** Section 59(7) of the Insolvency and Bankruptcy Code, 2016, allows for the voluntary

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**Reasoning:** The NCLT examined the submissions and records and found that the affairs of the Company

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**Interpretation:** Section 59(7) provides a mechanism for a solvent company to voluntarily

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**Application:** In this case, the company passed a special resolution, the directors declared

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** CS Milind B.…
- **Respondents:** Modular Mining…
- **Advocates:** Surekha…; Avinash R.…

## Timeline

- **2006-09-16 — Company Incor…**: M/s Modular Mining Systems India…
- **2021-08-23 — Board Me…**: The Board of Directors decided to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 59(7) — Voluntary liquidation of corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-59)

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