# In the matter of Sree Sankari Benefit Funds Limited CP(IB)-209(CHE)-2022

> NCLT judgment dated 2022-11-09. Citation: TCN-2022-NCLT-00507. The case pertains to a Company Petition filed by the Liquidator for the voluntary liquidation…

- **Court:** NCLT
- **Order date:** 9 Nov 2022
- **Citation:** TCN-2022-NCLT-00507
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sree-sankari-benefit-funds-limited-cpib-209che-2022-702ab878

## Summary

### Background

The case pertains to a Company Petition filed by the Liquidator for the voluntary liquidation of M/s. Sree Sankari Benefit Funds Limited under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016), seeking dissolution of the Applicant Company. The company was incorporated on 28.02.1997 under the provisions of the Companies Act, 1956, with the objective to function as a Nidhi Company. Due to a decline in business activities, the company stopped its operations in 2012 and voluntarily surrendered its NBFC (Nidhi) Certificate with RBI in 2016. The Board of Directors decided to voluntarily liquidate the company under Section 59 of the IBC, 2016.

## Facts

M/s. Sree Sankari Benefit Funds Limited, a Nidhi Company incorporated on 28.02.1997, initiated voluntary liquidation proceedings due to a decline in business activities since 2012. The company had voluntarily surrendered its NBFC (Nidhi) Certificate with RBI in 2016. The authorized share capital of the company was Rs.36,00,000/- divided into 36,00,000 equity shares of Re.1/- each. The issued, subscribed, and paid-up share capital was Rs.28,12,800/- divided into 28,12,800 equity shares of Re.1/- each. The directors of the company, Ms. Sangappan Loganathan Saroja, Mr. Boriya Gounder Ramasamy, and Mr. Sangappan Loganathan Sivasankaran, declared that the company had no debt. A special resolution was passed on 15.12.2021 to liquidate the company and appoint a Liquidator.

…

## Issues and analysis

### Issue 1: Whether the Applicant Company deserves to be dissolved under Section 59(8) of the Insolvency and …

**Ratio:** Section 59(8) of the IBC, 2016, empowers the Adjudicating Authority to order the

…

**Reasoning:** The court examined the submissions made by the Learned Counsel for the Applicant, perused

…

**Interpretation:** Section 59(8) of the IBC, 2016, is interpreted to mean that once the

…

**Application:** In this case, the court found that the liquidation process was complete, the

…

## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** Vasudevan…
- **Respondents:** Sree Sankari…
- **Advocates:** A.G. Sathyanarayan…

## Timeline

- **1997-02-28 — Company Incor…**: M/s. Sree Sankari Benefit Funds Limited was…
- **2012-01-01 — Cessation of Business…**: The company stopped its business operations…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sree-sankari-benefit-funds-limited-cpib-209che-2022-702ab878