# In the matter of Saket City Hospitals Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01628. This case involves a Company Petition filed under Section 59(7) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Apr 2024
- **Citation:** TCN-2024-NCLT-01628
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/saket-city-hospitals-limited-4068222c

## Summary

### Background

This case involves a Company Petition filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, by Saket City Hospitals Limited ('SCHL') through its Insolvency Professional, Ms. Sunita Umesh, for voluntary liquidation. SCHL, incorporated under the Companies Act, 1956, sought dissolution through voluntary liquidation under Section 59 of the Code. The company's Board of Directors decided to liquidate voluntarily and distribute the business undertaking to its sole shareholder, Max Healthcare India Limited (MHIL), to improve group efficiencies. The company declared solvency and complied with the necessary formalities, including filing declarations with the Registrar of Companies.

## Facts

Saket City Hospitals Limited ('SCHL'), incorporated under the Companies Act, 1956, initiated voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company's authorized share capital was INR 70,00,00,000, and the issued, subscribed, and paid-up share capital was INR 29,43,24,140, held solely by Max Healthcare India Limited (MHIL). On 16.06.2022, the Board of Directors resolved to liquidate the company voluntarily and distribute the business undertaking to MHIL. A special resolution was passed on 20.06.2022 to liquidate the company and appoint Ms. Sunita Umesh as the liquidator. The company declared solvency and filed necessary declarations. The liquidation commenced on 20th June 2022. The liquidator notified the Registrar of Companies

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## Issues and analysis

### Issue 1: Whether the Corporate Person, Saket City Hospitals Limited, should be dissolved 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 NCLT observed that the affairs of Saket City Hospitals Limited had been completely

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

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**Application:** In this case, the NCLT applied Section 59(7) to the facts presented, noting

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## Parties

- **Judges:** Madhu S…; Reeta K…
- **Respondents:** Saket City…

## Timeline

- **2022-06-16 — Board Resolution for…**: The Board of Directors of Saket City Hospitals Limited decided to liquidate the company…
- **2022-06-20 — Special Resolution for…**: Members of the Corporate Person passed a Special Resolution in the Extra-Ordinary General…

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