# In the matter of Shivshankar Niwas Private Limited

> NCLT judgment dated 2024-06-13. Citation: TCN-2024-NCLT-01167. The case pertains to an application filed under section 59(7) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Jun 2024
- **Citation:** TCN-2024-NCLT-01167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shivshankar-niwas-private-limited-6d162e4b

## Summary

### Background

The case pertains to an application filed under section 59(7) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 38(3) of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, for the dissolution of Shivshankar Niwas Private Limited, a corporate person undergoing voluntary liquidation. The corporate person, through its directors, had filed a Declaration of Solvency with the Registrar of Companies on 11/11/2019, declaring that the company had no debt or would be able to pay its debts in full from the proceeds of assets to be sold in the voluntary liquidation and that the company is not being liquidated to defraud any person. The voluntary liquidation process commenced following a Special Resolution passed by the

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## Facts

Shivshankar Niwas Private Limited (CIN: U45400WB2013PTC195696) underwent voluntary liquidation. The company filed a Declaration of Solvency on 2019-11-11, stating it had no debt or could pay debts in full. Kailash Pati Todi was appointed as the Liquidator. A special resolution was passed on 2019-11-19 to commence the voluntary liquidation. Public announcements were made on 2019-11-22 in 'Financial Express' and 'Aajkal'. The last date for creditor claims was 2019-12-19, but no claims were received. A notice under Section 178 of the Income Tax Act was served on 2019-11-25. The company's assets consisted of cash balance, bank balance, and IT Refundable, which were fully realized. The final report was dated 2021-12-13. The company's current account was closed on

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Person, Shivshankar Niwas Private Limited, …

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

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**Reasoning:** The court reviewed the liquidator's submissions, including the declaration of solvency,

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**Interpretation:** Section 59(7) provides a mechanism for dissolving a corporate entity after a

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**Application:** The court applied the provisions of Section 59(7) to the facts of the case,

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** Shivshankar Niwas…

## Timeline

- **2019-11-11 — Declaration of…**: Shivshankar Niwas Private Limited filed a Declaration of Solvency with the Registrar of…
- **2019-11-19 — Special Res…**: A Special Resolution was passed to…

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