# In the matter of Shinmaywa Industries India Pvt. Ltd.

> NCLT judgment dated 2023-07-17. Citation: TCN-2023-NCLT-02488. The case pertains to an application filed by the Liquidator under Section 59(7) of the…

- **Court:** NCLT
- **Order date:** 17 Jul 2023
- **Citation:** TCN-2023-NCLT-02488
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shinmaywa-industries-india-pvt-ltd-f7a4b781

## Summary

### Background

The case pertains to an application filed by the Liquidator under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, read with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, seeking the dissolution of M/s Shinmaywa Industries India Private Limited. The company was incorporated on 03.06.2009 and its main objects included providing business auxiliary services and dealing with motor vehicles. The company had been carrying on business which was no longer viable and not earning profits. The Board of Directors considered the matter on 29.08.2022 and proposed to close down the company by way of voluntary liquidation. A resolution was passed to liquidate the company voluntarily, subject to approval from the members. The

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## Facts

M/s Shinmaywa Industries India Pvt. Ltd. (the 'Company') was incorporated on 03.06.2009 with CIN U34101DL2009FTC234902. The registered office is located at A-192, Sarita Vihar, New Delhi. The Company's main business involved providing auxiliary services and dealing with motor vehicles. The authorized share capital was Rs. 2,00,00,000 divided into 20,00,000 equity shares. The company had been facing financial difficulties and was no longer viable. On 29.08.2022, the Board of Directors decided to initiate voluntary liquidation. On 05.09.2022, a special resolution was passed to liquidate the company, and Mr. Rajiv Bajaj was appointed as the Liquidator. The Liquidator made a public announcement on 08.09.2022 and opened a bank account. The voluntary liquidation process was

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## Issues and analysis

### Issue 1: Whether the application for dissolution of M/s Shinmaywa Industries India Pvt. Ltd. under Section …

**Ratio:** Section 59(7) of the Insolvency and Bankruptcy Code, 2016, allows for the dissolution of

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**Reasoning:** The Tribunal considered the application filed by the Liquidator and the steps taken by

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

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**Application:** The Tribunal applied Section 59(7) to the facts of the case, noting that the

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## Parties

- **Judges:** Praveen…; RAHUL BHA…
- **Appellants:** M/s. Shinmaywa…
- **Respondents:** Shinmaywa…

## Timeline

- **2009-06-03 — Company Incor…**: M/s Shinmaywa Industries India…
- **2022-08-29 — Board of Directors…**: The Board of Directors decided to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 176(3) — Final dividend](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-176)

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