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

> NCLT judgment dated 2022-11-09. Citation: TCN-2022-NCLT-00514. The case pertains to a Company Petition filed by the Liquidator seeking dissolution of the…

- **Court:** NCLT
- **Order date:** 9 Nov 2022
- **Citation:** TCN-2022-NCLT-00514
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sree-sankari-benefit-funds-limited-cpib-209che-2022-d2082a0f

## Summary

### Background

The case pertains to a Company Petition filed by the Liquidator seeking dissolution of the Applicant Company, M/s. Sree Sankari Benefit Funds Limited, under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (IBC). The company was incorporated in 1997 as a Nidhi Company and ceased business operations in 2012 due to declining business activities. It voluntarily surrendered its NBFC (Nidhi) Certificate with RBI in 2016. The Board of Directors decided to voluntarily liquidate the company on 23.11.2021, believing it lacked feasible business opportunities.

## Facts

M/s. Sree Sankari Benefit Funds Limited, a Nidhi Company incorporated on 28.02.1997, ceased business operations in 2012 and voluntarily surrendered its NBFC certificate in 2016. The Board of Directors resolved to voluntarily liquidate the company on 23.11.2021. The authorized share capital 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. A special resolution was passed on 15.12.2021 to liquidate the company and appoint a Liquidator. The Liquidator issued public announcements and notified the RoC and IBBI. The company had no outstanding debts at the commencement of voluntary liquidation, with only current liabilities of Rs.45,402

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## Issues and analysis

### Issue 1: Whether the Applicant Company, M/s. Sree Sankari Benefit Funds Limited, deserves to be dissolved …

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

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

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**Interpretation:** Section 59(8) provides the legal basis for dissolving a company after the

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**Application:** Based on the evidence presented, the court determined that the conditions under

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## 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…
- **2012-01-01 — Cessation of Business…**: Company stopped its business operations…

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