# In the matter of Digital Reading Foundation

> NCLT judgment dated 2025-11-03. Citation: TCN-2025-NCLT-01622. The case pertains to the voluntary liquidation of Digital Reading Foundation under Section 59…

- **Court:** NCLT
- **Order date:** 3 Nov 2025
- **Citation:** TCN-2025-NCLT-01622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/digital-reading-foundation-5dba2f51

## Summary

### Background

The case pertains to the voluntary liquidation of Digital Reading Foundation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company initiated voluntary liquidation after ceasing operations and resolving to do so in a board meeting. The liquidator, Mr. Kunwarpreet Singh, filed an application for dissolution of the company after completing the necessary procedures.

## Facts

Digital Reading Foundation initiated voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016.

The company ceased all its activities and was no longer conducting any operations.

The Board of Directors resolved to initiate voluntary liquidation in a meeting held on 07.01.2025.

Ms. Smita Sircar and Mr. Pradeep Kumar, Directors of the company, executed separate Declarations of Solvency.

Mr. Kunwarpreet Singh was appointed as the Liquidator.

The Liquidator made a public announcement for the commencement of liquidation.

The Liquidator opened a Liquidation Bank Account with Axis Bank Limited.

The Liquidator submitted a preliminary report to the Corporate Person and the IBBI.

The Liquidator submitted a final report to the IBBI and the Registrar of Companies.

…

## Issues and analysis

### Issue 1: Whether the voluntary liquidation process was conducted in accordance with the provisions of …

**Ratio:** Section 59 of the Insolvency and Bankruptcy Code, 2016 read with the Insolvency and

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**Reasoning:** The Adjudicating Authority examined the records and found that the Liquidator had

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**Interpretation:** The provisions of Section 59 and the regulations were interpreted to ensure

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**Application:** The Adjudicating Authority applied the provisions of Section 59 and the

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## Parties

- **Judges:** BACHU VENKAT…; Sanjeev R…
- **Respondents:** Digital Reading…; Registrar of…
- **Other parties:** Pradeep…; Smita S…; +1 more
- **Advocates:** Mansi G…; Arjun Chakr…

## Timeline

- **2025-01-07 — Board Me…**: Board of Directors of the Applicant Company resolved to initiate Voluntary Liquidation…
- **2025-01-08 — Declarations of…**: Ms. Smita Sircar and Mr. Pradeep Kumar, Directors of the Applicant Company, executed…

## 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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