# In the matter of VSN Pan Products Limited

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02710. The case pertains to the voluntary liquidation of M/s. VSN Pan Products Limited, initiated…

- **Court:** NCLT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLT-02710
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vsn-pan-products-limited-1267849e

## Summary

### Background

The case pertains to the voluntary liquidation of M/s. VSN Pan Products Limited, initiated under Section 59 of the Insolvency and Bankruptcy Code (IBC), 2016. The company was incorporated on 19.07.2016 and its main business involved the manufacture, import, export, and sale of pan masala and related products. The Board of Directors passed a resolution on 04.12.2020 to voluntarily wind up the company, and a special resolution was passed on 01.01.2021 to liquidate the company voluntarily, appointing Shri Pinakin Shah as the liquidator. The liquidator took several steps, including making public announcements, opening a bank account, and submitting preliminary reports. The final report was submitted to the ROC and IBBI on 19.04.2022.

## Facts

M/s. VSN Pan Products Limited was incorporated on 19.07.2016 under the Companies Act, 2013. The company's authorized share capital was Rs. 1,00,00,000, divided into 1,00,000 equity shares of Rs. 100 each. The company's main business was the manufacture, import, export, and sale of pan masala and related products. On 04.12.2020, the Board of Directors resolved to voluntarily wind up the company, and on 01.01.2021, a special resolution was passed to liquidate the company voluntarily, appointing Shri Pinakin Shah as the liquidator. The directors filed a declaration of solvency stating that the company had no debt and could pay its debts in full from the proceeds of its assets. The commencement of liquidation was intimated to the ROC on 07.01.2021, and a public

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## Issues and analysis

### Issue 1: Whether the application filed under Section 59(7) of the IBC, 2016, read with the IBBI (Voluntary …

**Ratio:** Section 59 of the IBC, 2016, allows for the voluntary liquidation of a corporate person

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**Reasoning:** The court considered the application filed by the liquidator under Section 59(7) of the

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**Interpretation:** Section 59 of the IBC provides a mechanism for a solvent company to voluntarily

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**Application:** In this case, the court found that the company had complied with the

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## Parties

- **Judges:** BIDISHA BA…; Manoj Kumar…
- **Respondents:** VSN Pan Products…; The Registrar of…

## Timeline

- **2016-07-19 — Incorporation o…**: M/s. VSN Pan Products Limited was…
- **2020-12-04 — Board Resolution for…**: The Board of Directors passed a…

## Legal provisions

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

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