# In the matter of Velocloud Networks Private Limited CP(IB)-183(CHE)-2022

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00734. The case pertains to the voluntary liquidation of Velocloud Networks Private Limited under…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00734
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/velocloud-networks-private-limited-cpib-183che-2022-0ca5d7bc

## Summary

### Background

The case pertains to the voluntary liquidation of Velocloud Networks Private Limited under Section 59(7) of the Insolvency and Bankruptcy Code, 2016. The company was incorporated on 26.08.2013 and was later acquired by the VMWare group in 2017, after which it phased out its business activities. The company proposed to wind up its affairs under the Members' Voluntary Liquidation process. The liquidator, Mr. Vasudevan Gopu, filed a company petition seeking dissolution of the company.

## Facts

Velocloud Networks Private Limited was incorporated on 26.08.2013. The company's CIN is U72900TN2013PTC092679. On 12.12.2017, the Velocloud group of companies was acquired by VMWare. Consequently, the company phased out its business activities and moved its employees to the VMware group. The company had two directors and two shareholders. The authorized and issued capital was INR 1,00,000. The company proposed to wind up its affairs under the Members' Voluntary Liquidation process. As of 28.02.2022, the company had liabilities of Rs. 29,500 and assets of Rs. 5,12,51,776. The debt of Rs. 29,500 was settled on 07.05.2022. The members convened an Extraordinary General Meeting on 12.05.2022 and passed a Special Resolution approving the Voluntary Liquidation. Mr. Vasudevan

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## Issues and analysis

### Issue 1: Whether the Applicant Company has complied with the provisions of Section 59 of the Insolvency and …

**Ratio:** Section 59 of the IBC, 2016, outlines the procedure for voluntary liquidation of a

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**Reasoning:** The court examined the various actions taken by the liquidator, including settling

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**Interpretation:** Section 59 of the IBC, 2016, is interpreted to ensure a transparent and orderly

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**Application:** The court applied the provisions of Section 59 to the specific facts of the

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** Mr.Vasudeva…
- **Respondents:** Velocloud…

## Timeline

- **2013-08-26 — Incorporati…**: Velocloud Networks Private…
- **2017-12-12 — Acquisition b…**: The Velocloud group of companies was…

## 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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