# In the matter of Phoenix Yarns Private Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01617. The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Apr 2024
- **Citation:** TCN-2024-NCLT-01617
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/phoenix-yarns-private-limited-59ce7564

## Summary

### Background

The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and Bankruptcy Code (IBC), 2016, read with the IBBI (Voluntary Liquidation Process) Regulations, 2017, for the voluntary liquidation of Phoenix Yarns Private Limited. The company initiated the voluntary liquidation process by passing a special resolution in its Annual General Meeting (AGM) held on June 27, 2018, which is considered the commencement date of the voluntary liquidation. The applicant, acting as the liquidator, sought the dissolution of the corporate entity after completing the liquidation process.

## Facts

Phoenix Yarns Private Limited, incorporated on August 12, 2013, under the Companies Act, 2013, initiated a voluntary liquidation process. The company passed a special resolution in its Annual General Meeting (AGM) on June 27, 2018, to commence voluntary liquidation. Mr. Rajiv Khurana was appointed as the liquidator. The company's directors provided declarations of solvency, stating that the company had no debts as of March 31, 2018, and was not being liquidated to defraud anyone. The company opened an account with Allahabad Bank, Chandigarh, for liquidation purposes. The liquidator submitted preliminary and final reports, detailing the distribution of assets among stakeholders. The Registrar of Companies (ROC) filed a report on May 16, 2019, and the IBBI filed its

…

## Issues and analysis

### Issue 1: Whether the voluntary liquidation process of Phoenix Yarns Private Limited was conducted in …

**Ratio:** The legal principle applied is that voluntary liquidation must adhere to the procedures

…

**Reasoning:** The court reasoned that the company had passed a special resolution in its AGM, appointed

…

**Interpretation:** The interpretation is that compliance with the IBC and IBBI regulations is

…

**Application:** In this case, the company followed the required procedures, including passing a

…

## Parties

- **Judges:** Sh. Harnam Singh…; SH. L. N.…
- **Appellants:** Sh. Rajiv K…
- **Respondents:** Phoenix Yarns…

## Timeline

- **2013-08-12 — Company Incor…**: Phoenix Yarns Private Limited was…
- **2018-06-27 — Special Resolution for…**: The company passed a special resolution in its Annual General Meeting (AGM) to commence…

## 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)

---

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/phoenix-yarns-private-limited-59ce7564