# In the matter of Sevenstrata IT Services Private Limited

> NCLT judgment dated 2023-11-17. Citation: TCN-2023-NCLT-00724. The case pertains to the voluntary liquidation of Sevenstrata IT Services Private Limited under…

- **Court:** NCLT
- **Order date:** 17 Nov 2023
- **Citation:** TCN-2023-NCLT-00724
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sevenstrata-it-services-private-limited-a76ef826

## Summary

### Background

The case pertains to the voluntary liquidation of Sevenstrata IT Services Private Limited under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company was incorporated on 30.08.2007 and aimed to provide IT Infrastructure Management Services. In 2010, it sold its software, fixed assets, and business to Mind Tree Limited. The company had previously reduced its share capital and repatriated funds to its parent company, Sevenstrata Inc. A resolution for voluntary liquidation was passed on 25.11.2020, and shareholders approved the liquidation and appointed a liquidator on 30.11.2020.

## Facts

Sevenstrata IT Services Private Limited was incorporated on 30.08.2007 with the objective of providing IT Infrastructure Management Services. In 2010, the company sold its software, fixed assets, and business to Mind Tree Limited for Rs.7,50,51,080/-, with the transfer completed on 30.04.2010. The company had an authorized share capital of Rs.5,00,00,000/- divided into 50,00,000 equity shares of Rs.10/- each. The company filed an application for reduction of share capital, which was approved on 18.09.2019. Subsequently, funds of Rs.4,69,47,272/- were repatriated to the parent company, Sevenstrata Inc., in May 2020. On 25.11.2020, a resolution for voluntary liquidation was passed, and on 30.11.2020, shareholders approved the liquidation and appointed a liquidator. The

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## Issues and analysis

### Issue 1: Whether the voluntary liquidation process of Sevenstrata IT Services Private Limited was conducted …

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

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**Reasoning:** The court examined the submissions of the liquidator, including compliance with IBBI

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**Interpretation:** Section 59 of the IBC and the IBBI Regulations provide a framework for

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**Application:** The court applied this principle by reviewing the liquidator's actions and

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Ganesh…
- **Respondents:** Sevenstrata IT…

## Timeline

- **2007-08-30 — Company Incor…**: Sevenstrata IT Services…
- **2010-01-01 — Sale of A…**: The company sold its software, fixed…

## 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)

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