# In the matter of R.S. Commodities Private Limited

> NCLT judgment dated 2024-02-27. Citation: TCN-2024-NCLT-02362. The application was filed by the Liquidator under Section 59 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Feb 2024
- **Citation:** TCN-2024-NCLT-02362
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rs-commodities-private-limited-111ab2be

## Summary

### Background

The application was filed by the Liquidator under Section 59 of the Insolvency and Bankruptcy Code, 2016, seeking dissolution of M/s RS Commodities Private Limited. The company was incorporated on 17.03.2006 with the objective of trading in agricultural products, metals, and other commodities. The company had an authorized share capital of Rs. 1,00,00,000/-. The company had suspended its trading operations for a long time. The Board of Directors decided to liquidate the company voluntarily under Section 59 of the IBC, 2016. The directors made a declaration of solvency on 10.01.2023, stating that the company is able to pay its debts in full and is not being liquidated to defraud any person. The company does not have any movable or immovable assets, hence no valuation

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## Facts

M/s RS Commodities Private Limited (the 'Company') was undergoing voluntary liquidation. The liquidator filed an application seeking dissolution of the company under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 ('IBC'). The company was incorporated on 17.03.2006 with the objective of trading in agricultural products, metals, and other commodities. The company's authorized share capital was Rs. 1,00,00,000/-. The company had suspended its trading operations for a long time. The Board of Directors decided to liquidate the company voluntarily under Section 59 of the IBC, 2016. The directors made a declaration of solvency on 10.01.2023, stating that the company is able to pay its debts in full and is not being liquidated to defraud any person. The company does

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## Issues and analysis

### Issue 1: Whether the application filed by the liquidator for dissolution of the company under Section 59(7) …

**Ratio:** Section 59(7) of the Insolvency and Bankruptcy Code, 2016 allows the Tribunal to pass an

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**Reasoning:** The court considered the steps taken by the liquidator, including the public

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**Interpretation:** Section 59(7) of the IBC provides the legal basis for dissolving a corporate

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**Application:** In this case, the court found that the liquidator had complied with all the

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; RAHUL BHA…
- **Appellants:** M/s RS COMMODITIES…
- **Respondents:** RS COMMODITIES…

## Timeline

- **2006-03-17 — Company Incor…**: RS Commodities Private…
- **2023-01-05 — Statement of…**: Statement of Affairs as…

## 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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