# In the matter of Special Engineering (Halol) Private Limited

> NCLT judgment dated 2024-01-29. Citation: TCN-2024-NCLT-02868. The case pertains to an application filed by the Special Engineering (Halol) Private Limited…

- **Court:** NCLT
- **Order date:** 29 Jan 2024
- **Citation:** TCN-2024-NCLT-02868
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/special-engineering-halol-private-limited-82a4f03d

## Summary

### Background

The case pertains to an application filed by the Special Engineering (Halol) Private Limited through its liquidator, Mr. Bhavan Trivedi, for dissolution of the corporate person under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 38 of the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. The company was incorporated in 1979 and decided to undergo voluntary liquidation due to a lack of new business opportunities. The board of directors resolved to liquidate the company's affairs, and a special resolution was passed in an extraordinary general meeting held on May 11, 2022, to liquidate the company voluntarily. CA Bhavan Trivedi was appointed as the liquidator.

## Facts

Special Engineering (Halol) Private Limited, incorporated on September 1, 1979, decided to undergo voluntary liquidation due to the absence of new business opportunities. The company's authorized share capital was Rs. 20,00,000, divided into 20,000 equity shares of Rs. 100 each, while the issued, subscribed, and paid-up share capital was Rs. 7,71,000, divided into 7,710 shares. The board of directors resolved to liquidate the company, and a special resolution was passed on May 11, 2022. Mr. Bhavan Trivedi was appointed as the liquidator. The liquidator made public announcements and submitted preliminary reports. A separate bank account was opened and subsequently closed. Claims were received from 20 shareholders amounting to Rs. 7,71,000, which were verified and

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## Issues and analysis

### Issue 1: Whether the application for dissolution of Special Engineering (Halol) Private Limited under …

**Ratio:** Section 59(8) of the IBC, 2016, empowers the court to pass an order for dissolution if it

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**Reasoning:** The court reasoned that the affairs of the company had been completely wound up, the

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**Interpretation:** Section 59(7) allows for voluntary liquidation, and Section 59(8) provides the

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Bhavan Tr…
- **Respondents:** Special Engineerin…

## Timeline

- **1979-09-01 — Company Incor…**: Special Engineering (Halol)…
- **2022-05-11 — Special Resolution for…**: An extra ordinary general meeting was held, and a special resolution was passed to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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