# In the matter of System Technology Group (India) Private Limited CP-IB-268(CHE)2022

> NCLT judgment dated 2023-02-01. Citation: TCN-2023-NCLT-04828. The case pertains to an application filed under Section 59(7) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Feb 2023
- **Citation:** TCN-2023-NCLT-04828
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/system-technology-group-india-private-limited-cp-ib-268che2022-acf8ed7b

## Summary

### Background

The case pertains to an application filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016, for the voluntary liquidation of Systems Technology Group (India) Private Limited. The applicant is the liquidator, Sashikant Shravan Damne. The corporate debtor initiated voluntary liquidation, claiming solvency. The application sought dissolution of the corporate person from the date of the Tribunal's order and other related reliefs.

## Facts

Systems Technology Group (India) Private Limited initiated voluntary liquidation under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. Sashikant Shravan Damne was appointed as the liquidator. The company claimed to be solvent and sought dissolution. A special resolution was passed by the shareholders on 21.03.2022. The directors, Anup Kanaiyalal Popat and Mona Popat Aggarwal, issued a declaration of solvency dated 14.03.2022. The Corporate Debtor had only one creditor. The liquidator assumed charge on 21.03.2022, and public announcements were made on 24.03.2022. The last date for submission of claims was 20.04.2022. An unaudited balance sheet as of 21 March 2022 showed that the creditor was liable to be paid Rs. 99,96,870. The company was unable to repay

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor was solvent as of the Liquidation Commencement Date, as required for …

**Ratio:** Voluntary liquidation requires the corporate debtor to be solvent, meaning its assets

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**Reasoning:** The Tribunal observed that the unaudited balance sheet as of the Liquidation Commencement

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**Interpretation:** Section 59 of the IBC mandates that a company undergoing voluntary liquidation

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**Application:** In this case, the Tribunal found that the liabilities exceeded the assets on

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## Parties

- **Judges:** DEEPTI M…; SAMEER…
- **Appellants:** Sashikant Shravan…
- **Respondents:** Systems Technology…

## Timeline

- **2022-03-21 — Special Res…**: Special Resolution was passed by the…
- **2022-03-14 — Declaration of…**: Declaration of Solvency issued by Mr. Anup…

## 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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