# In the matter of Saffron Nonwoven Private Limited

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02168. The case pertains to an application filed by the liquidator, Mr. Pinakin Shah, for the…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02168
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/saffron-nonwoven-private-limited-9353e4f5

## Summary

### Background

The case pertains to an application filed by the liquidator, Mr. Pinakin Shah, for the voluntary liquidation of Saffron Nonwoven Private Limited 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 on 05.08.2011, sought voluntary liquidation due to the non-availability of business prospects. A board meeting was held on 10.04.2023, followed by an Extraordinary General Meeting on 01.05.2023, where a special resolution was passed to liquidate the company and appoint Mr. Pinakin Shah as the liquidator. The Board of Directors filed a Declaration of Solvency, and the liquidator made a public announcement on 04.05.2023, calling for stakeholder claims.

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## Facts

Saffron Nonwoven Private Limited, incorporated on 05.08.2011, sought voluntary liquidation due to the non-availability of business prospects. A board meeting was held on 10.04.2023, and an Extraordinary General Meeting (EGM) took place on 01.05.2023, where a special resolution was passed to liquidate the company and appoint Mr. Pinakin Shah as the liquidator. The company filed a Declaration of Solvency with the Registrar of Companies. The liquidator made a public announcement on 04.05.2023, calling for stakeholder claims. The liquidator intimated the commencement of liquidation to the Income Tax Authority and the Registrar of Companies. An existing account with HDFC Bank was converted into a liquidation account. The liquidator submitted a preliminary report on

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## Issues and analysis

### Issue 1: Whether the application for voluntary liquidation of Saffron Nonwoven Private Limited under Section …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 38 of the

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**Reasoning:** The court considered the application filed by the liquidator, the documents submitted,

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**Interpretation:** Section 59(7) of the IBC, 2016, allows a corporate person to initiate voluntary

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**Application:** The court applied Section 59(7) of the IBC, 2016, and Regulation 38 of the IBBI

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Pinakin…
- **Respondents:** Saffron Nonwoven…

## Timeline

- **2011-08-05 — Company Incor…**: Saffron Nonwoven Private…
- **2023-04-10 — Board Me…**: Board meeting held to consider…

## 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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