Case Details: KS Electronics (P.) Ltd. vs. Registrar of Companies - [2026] 186 taxmann.com 422 (NCLT-Allahabad)
Judiciary and Counsel Details
- Praveen Gupta, Judicial Member & Ashish Verma, Technical Member
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Anil Kumar, Liquidator for the Applicant.
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Krishna Dev Vyas, Adv. for the Respondent.
Facts of the Case
In the instant case, the Applicant was appointed as the Liquidator of the company. During the voluntary liquidation process, no claims were received from any creditors or workmen, and no assets of the company were sold or distributed. Subsequently, the Board of Directors and the members of the company unanimously resolved to withdraw the voluntary liquidation proceedings and continue the company as a going concern.
Accordingly, the Liquidator filed an application under Rule 11 of the NCLT Rules, 2016 read with section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the voluntary liquidation process and restoration of the company as a going concern.
NCLT Held
The NCLT observed that where voluntary liquidation had been initiated with the consent of the stakeholders and the same stakeholders subsequently sought its withdrawal, and where no third-party rights had been affected, the inherent powers of the Tribunal under Rule 11 of the NCLT Rules, 2016 could be invoked to secure the ends of justice.
Accordingly, the NCLT allowed the withdrawal of the voluntary liquidation process and directed the Liquidator to hand over the assets and management of the company to the Board of Directors, subject to settlement of his legitimate fees and dues.
The NCLT further held that, upon restoration of the company to its normal status, the Liquidator would stand discharged from all duties and responsibilities in relation to the voluntary liquidation process of the company.
List of Cases Referred to
- Biocad India (P). Ltd. v. Registrar of Companies [C.P. (IB) No. 47/BB/2023, dated 20-7-2023] (para 2)
- Enel Green Power India (P) Ltd v. Suman Kumar Verma [CP (IB) No. 3 (CH) 2024, dated 1-7-2025] (para 2).
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