# In the matter of Pinkcity Electronics Private Limited

> NCLT judgment dated 2024-07-05. Citation: TCN-2024-NCLT-01058. The case pertains to the voluntary liquidation of M/s. Pinkcity Electronics Private Limited…

- **Court:** NCLT
- **Order date:** 5 Jul 2024
- **Citation:** TCN-2024-NCLT-01058
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pinkcity-electronics-private-limited-ab7cc165

## Summary

### Background

The case pertains to the voluntary liquidation of M/s. Pinkcity Electronics Private Limited under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, read with the Voluntary Liquidation Process Regulations, 2017. The company's board of directors recommended voluntary liquidation due to the company not carrying on business for more than three years and not earning profits except for interest income. The application was filed by the liquidator, Mr. Pradeep Kumar, seeking dissolution of the company and discharge of the liquidator from his duties.

## Facts

M/s. Pinkcity Electronics Private Limited initiated voluntary liquidation under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company's board recommended liquidation due to inactivity and lack of profitability. The company was incorporated on 11.11.1992. Mr. Pradeep Kumar was appointed as the liquidator. The liquidator made public announcements and informed relevant authorities. The company had no fixed assets and only financial assets. The liquidator received no claims from creditors. The company's last balance sheet and annual return were filed for FY 2021-22. The liquidator obtained a final Income Tax Refund Order and a communication from the GST department confirming no pending demands. The total assets realized were Rs. 136.14 Lakhs, and total

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation of M/s. Pinkcity Electronics Private Limited …

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

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**Reasoning:** The court considered the submissions of the liquidator, the records presented, and the

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**Interpretation:** Section 59 provides a framework for voluntary liquidation, ensuring that the

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

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Respondents:** PINKCITY ELECTRONI…

## Timeline

- **1992-11-11 — Company Incor…**: M/s. Pinkcity Electronics…
- **2022-11-28 — Board of Directors…**: The Board of Directors recommended the…

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