National Company Law Tribunal Satisfied with Compliance of Section 59 of the Insolvency and Bankruptcy Code, 2016
In a significant development, the National Company Law Tribunal (NCLT), New Delhi, has approved the voluntary liquidation of Paysend India Private Limited, a company involved in money transfers and payment facilitation services. The order was passed by a bench comprising Mr. Justice Bachu Venkat Balaram Das, Acting President, and Mr. Yogendra Kumar Singh, Member (Technical).
Paysend India Private Limited, incorporated on July 25, 2022, had sought voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed by the liquidator, Mr. Arun Gupta, following the Board of Directors' decision to wind up the company's affairs due to business outcomes not aligning with expectations.
The Tribunal confirmed that all statutory requirements under Section 59 of the IBC and the Voluntary Liquidation Process Regulations were duly met. The liquidation process included compliance with essential statutory provisions, such as the submission of audited financial statements, public announcement of liquidation, and distribution of assets among stakeholders.
The company's decision to liquidate was initially resolved in a special resolution passed at the Annual General Meeting on August 8, 2024. Mr. Arun Gupta was appointed as the liquidator with a remuneration of Rs. 8,00,000. Subsequently, the liquidator made public announcements and addressed claims from stakeholders, ensuring complete liquidation of the company's assets, which primarily consisted of cash and bank balances.
The liquidator's final report, submitted on April 20, 2025, confirmed that the company's affairs were wound up and assets fully liquidated. The NCLT order mandates the liquidator to preserve records for eight years and serve the order to the Registrar of Companies.
The voluntary liquidation process was completed within the stipulated timeline, with all compliance checklists submitted and verified by the Tribunal. The Tribunal directed the Registry to communicate the order to the Applicant Company and other relevant authorities for necessary follow-up actions.
The order marks the completion of the voluntary liquidation process for Paysend India Private Limited, ensuring compliance with all statutory requirements and protecting the interests of stakeholders.
Bottom line:-
Voluntary liquidation of a company under Section 59 of the Insolvency and Bankruptcy Code, 2016 - Compliance with statutory requirements ensures dissolution of the company.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016 - Section 59, Voluntary Liquidation Process Regulations, Companies Act, 2013, Income Tax Act, 1961, Regulation 3, 9, 14, 30, 34, 35, 38 of Voluntary Liquidation Process Regulations
