# In the matter of Systopia India Private Limited

> NCLT judgment dated 2024-10-25. Citation: TCN-2024-NCLT-00342. The case pertains to a company petition filed under Section 59 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 25 Oct 2024
- **Citation:** TCN-2024-NCLT-00342
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/systopia-india-private-limited-2e4b9d6b

## Summary

### Background

The case pertains to a company petition filed under Section 59 of the Insolvency and Bankruptcy Code, 2016, by M/s. Systopia India Private Limited, represented by the liquidator, Mr. Malireddy Ramana Reddy, seeking dissolution of the company under voluntary liquidation. The company initiated voluntary liquidation after ceasing operational activities and business in India. The Board of Directors proposed liquidation on 30.09.2023, and a declaration of solvency was made. A special resolution was passed by the shareholders to liquidate the company and appoint Mr. Malireddy Ramana Reddy as the liquidator. Public announcements were made, claims were invited, and statutory authorities were notified. The liquidator prepared a preliminary report, a list of stakeholders, and

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## Facts

M/s. Systopia India Private Limited filed a company petition under Section 59 of the Insolvency and Bankruptcy Code, 2016, seeking dissolution under voluntary liquidation. The company ceased its operational activities and stopped carrying on business in India. The Board of Directors proposed liquidation on 30.09.2023. The company's authorized capital was Rs.10,00,000, divided into 1,00,000 equity shares of Rs.10 each, and the paid-up capital was Rs.9,00,000, divided into 90,000 equity shares of Rs.10 each. The company had one operational creditor with an outstanding due of Rs. 30,000 towards audit fees. The liquidator made public announcements, notified statutory authorities, and received a 'No Due' email from the Income Tax Department. The company received a tax

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## Issues and analysis

### Issue 1: Whether the company petition under Section 59 of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016, allows for the voluntary

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**Reasoning:** The NCLT considered the submissions of the liquidator, the compliance with the

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**Interpretation:** Section 59 provides a mechanism for a solvent company to voluntarily liquidate

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**Application:** In this case, the company met the conditions for voluntary liquidation under

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Mali Reddy Ramana…
- **Respondents:** M/S. SYSTOPIA…

## Timeline

- **2018-10-22 — Company Incor…**: M/s. Systopia India Private Limited incorporated under the provisions of Companies Act,…
- **2023-09-30 — Board Me…**: The Board of Directors proposed to…

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