# In the matter of Sri Janardhana Credits Limited

> NCLT judgment dated 2024-06-11. Citation: TCN-2024-NCLT-01194. The case pertains to a Company Petition filed by the Liquidator of Sri Janardhana Credits…

- **Court:** NCLT
- **Order date:** 11 Jun 2024
- **Citation:** TCN-2024-NCLT-01194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-janardhana-credits-limited-98287160

## Summary

### Background

The case pertains to a Company Petition filed by the Liquidator of Sri Janardhana Credits Limited, seeking dissolution of the company under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (IBC). The company was incorporated on 23.05.1988. The Board of Directors passed a resolution on 25.03.2023 for voluntary liquidation. The NBFC license of the Corporate Person was cancelled by the RBI on 11.06.2020. Shareholders approved the appointment of the Applicant as Liquidator on 07.04.2023. The liquidator received claims only from 10 shareholders. The company had no assets other than cash deposits. The applicant distributed the assets and obtained an auditor's certificate. The applicant conducted the voluntary liquidation process in compliance with IBBI regulations.

## Facts

Sri Janardhana Credits Limited sought voluntary liquidation under Section 59(7) of the IBC, 2016. The company was incorporated on 23.05.1988. Its NBFC license was cancelled by the RBI on 11.06.2020. The Board of Directors resolved for voluntary liquidation on 25.03.2023. Shareholders approved the appointment of a liquidator on 07.04.2023. The liquidator received claims only from the 10 shareholders, totaling Rs. 2,00,02,000.00. The company's assets consisted of cash deposits of Rs. 2,59,68,462.25. The liquidator distributed the funds among the shareholders, with Rs 4,25,000 towards liquidation costs and Rs 2,55,43,462.25 to equity shareholders. The liquidator obtained an auditor's certificate for receipts and payments during the liquidation period. The applicant

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## Issues and analysis

### Issue 1: Whether the affairs of the Company have been completely wound up and the assets of the Company have …

**Ratio:** Section 59(8) of the IBC, 2016, empowers the court to order the dissolution of a company

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

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

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**Application:** Based on the evidence presented, the court determined that Sri Janardhana

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Venkatesh…
- **Respondents:** Janardhana…

## Timeline

- **1988-05-23 — Company Incor…**: Sri Janardhana Credits Limited was…
- **2020-06-11 — RBI License Can…**: The NBFC license of Sri Janardhana…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 59(7) — Voluntary liquidation of corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-59)

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