# In the matter of Om Auto Technocraft Private Limited

> NCLT judgment dated 2024-07-08. Citation: TCN-2024-NCLT-01050. The case pertains to an application filed by the Liquidator of OM Auto Technocraft Private…

- **Court:** NCLT
- **Order date:** 8 Jul 2024
- **Citation:** TCN-2024-NCLT-01050
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/om-auto-technocraft-private-limited-602cc73a

## Summary

### Background

The case pertains to an application filed by the Liquidator of OM Auto Technocraft Private Limited for the dissolution of the company through voluntary liquidation under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 38 of the IBBI (Voluntary Liquidation Process) Regulations, 2017. The company, incorporated in 2007, decided to liquidate due to the unavailability of business prospects and financial resources. The Board of Directors resolved to liquidate the company's affairs in a meeting held on March 31, 2023, and a special resolution was passed in an extraordinary general meeting on April 5, 2023, to voluntarily liquidate the company. Mr. Manish S Buchasia was appointed as the Liquidator.

## Facts

OM Auto Technocraft Private Limited, incorporated on February 21, 2007, decided to undergo voluntary liquidation due to the unavailability of business prospects and financial resources. The company's authorized share capital was Rs. 15,00,000/- divided into 1,50,000 equity shares. The Board of Directors resolved to liquidate the company on March 31, 2023, and a special resolution was passed on April 5, 2023, appointing Mr. Manish S Buchasia as the Liquidator. The Liquidator made a public announcement of the liquidation commencement and intimated the Income Tax Authority. A separate bank account was opened and subsequently closed. The Liquidator submitted preliminary and final reports. No claims were received from financial or operational creditors. The proceeds from

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## Issues and analysis

### Issue 1: Whether the application for dissolution of OM Auto Technocraft Private Limited under Section 59(7) …

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

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**Reasoning:** The Tribunal considered the reports and actions taken by the Liquidator, including the

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**Interpretation:** Section 59(7) and Regulation 38 are interpreted to mean that if a company has

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**Application:** In this case, the Liquidator followed the procedures outlined in Section 59(7)

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Respondents:** OM Auto Technocraf…

## Timeline

- **2007-02-21 — Company Incor…**: OM Auto Technocraft Private…
- **2023-03-31 — Board Me…**: The Board of Directors considered the matter of liquidation and resolved to liquidate the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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