# In the matter of VSN Pan Products Limited

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02688. 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-02688
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vsn-pan-products-limited-5acb466a

## 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, 2016 (IBC). The company was incorporated on 19.07.2016 and decided to wind up its affairs through voluntary liquidation, appointing Mr. Pinakin Shah as the liquidator. The company's board of directors declared solvency, stating that the company had no debt and could pay its debts in full from its assets without defrauding anyone. The company passed a special resolution for voluntary liquidation on 01.01.2021.

## Facts

M/s. VSN Pan Products Limited was incorporated on 19.07.2016. 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 involved manufacturing, importing, exporting, and selling pan masala and related products. The Board of Directors passed a resolution on 04.12.2020 for Declaration of Solvency. The Directors filed a Declaration of Solvency dated 27.01.2021, stating the company had no debt. A special resolution to liquidate the company voluntarily was passed on 01.01.2021, and Mr. Pinakin Shah was appointed as the liquidator. Public announcements regarding the liquidation were made on 08.01.2021. The liquidator submitted a preliminary report on 05.02.2021. A bank account was opened for

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## Issues and analysis

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

**Ratio:** The legal principle applied here is that once a corporate person's affairs are completely

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**Reasoning:** The court reasoned that based on the liquidator's reports and the records presented, the

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**Interpretation:** This involves interpreting Section 59 of the IBC, which deals with voluntary

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**Application:** The court applied this principle to the facts of the case, noting that the

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## Parties

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

## Timeline

- **2016-07-19 — Company Incor…**: M/s. VSN Pan Products…
- **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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