# In the matter of Naisargik Agritech (India) Limited CP(IB)-108(AHM)2022

> NCLT judgment dated 2023-07-05. Citation: TCN-2023-NCLT-02672. The case pertains to an application filed by M/s. Naisargik Agritech (India) Limited through…

- **Court:** NCLT
- **Order date:** 5 Jul 2023
- **Citation:** TCN-2023-NCLT-02672
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/naisargik-agritech-india-limited-cpib-108ahm2022-61ef73f9

## Summary

### Background

The case pertains to an application filed by M/s. Naisargik Agritech (India) Limited through its liquidator, Mr. Manish Buchasia, for voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016, read with regulation 38(3) of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. The company, incorporated in 1994, sought liquidation due to financial unviability. Resolutions were passed by the Board of Directors and shareholders to liquidate the company, and a liquidator was appointed. The liquidator made public announcements, intimated relevant authorities, opened a bank account for liquidation proceeds, and distributed the proceeds to the shareholders. The company had no fixed assets except for cash and

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## Facts

M/s. Naisargik Agritech (India) Limited, incorporated on 19.10.1994, filed an application for voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company's authorized share capital was Rs. 8,00,00,000, and the issued, subscribed, paid-up share capital was Rs. 6,10,20,700. The company's main objects included cultivation, floriculture, and processing of agricultural products. Due to financial unviability, the Board of Directors passed a resolution on 07.09.2020 to liquidate the company, subject to shareholder approval. Mr. Prashant Patel was initially appointed as the liquidator, later replaced by Mr. Manish S Buchasia on 13.09.2021. Public announcements were made, and the liquidator intimated BSE and IBBI. A bank account was opened

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation of M/s. Naisargik Agritech (India) Limited under …

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

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**Reasoning:** The court considered the fact that the company's shareholders had passed a resolution to

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**Interpretation:** Section 59 provides a mechanism for a solvent company to wind up its affairs

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**Application:** The court applied Section 59 to the facts of the case, finding that the company

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## Parties

- **Judges:** SHAMMI…; Ajai Das Me…
- **Appellants:** Manish S Bu…
- **Respondents:** Naisargik…; Registrar of…
- **Advocates:** Pankti…

## Timeline

- **1994-10-19 — Company Incor…**: Naisargik Agritech (India) Limited was…
- **2020-09-07 — Board Resolution for…**: The Board of Directors passed a…

## 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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