Ashish Shah Liquidator Of Sahiyar Fincap Private Limited vs Registrar Of Companies, Gujarat

Liquidation Process) Regulations, 2017 for dissolution of the

This is a Company Petition filed by the Liquidator Mr. Ashish Shah in relation to the voluntary liquidation of Sahiyar Fincap Private Limited with CIN:U65100GJ2016PTC086398, under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016”), seeking dissolution of the Company.

The Applicant Company wasincorporated on 10.03.2016under the provisions of the Companies Act, 2013. The main object of the Company is to carry on the business of Finance company including microfinance services (mainly Non-Banking Financial services as permitted by the Reserve bank of India) exclusively to large number of people directly or indirectly, either through Groups or individually and to carry on the business of financing development activities through long term loans and other means of financing upon such terms and conditions as the company may think fit for the purposes of agricultural development, industrial development, market linkage development, habitat development and to provide loan to any person, group of person or any other entity against gold or other movable or immovable security and to provide collateral free credit to poor men and women, deliver credits, insurance and other financial services to them in cities, towns, villages of India with a view to provide them sustainable livelihood enhancement of their living conditions based on their needs, skills and traditional livelihood occupations. The details of the main objects are set out in the Memorandum of Association, which is annexed along with the petition.

It is stated in the petition that Company was formed with the object of finance Company including microfinance services (mainly Non-Banking Financial Services as permitted by RBI). For the same, the Company had filed an application for registration with RBI under section 45-IA of the RBI Act, 1934 as Non- Banking Financial Company on 25th December, 2019 and said application was rejected by the RBI vide its order dated 7th September, 2020. Since its inception, the Company has not commenced any business activity in view of the pending approval from RBI, which was rejected. Therefore, the management of the company decided not to commence any business activity in future and it was decided to voluntarily wound up the Company. Hence, Extra Ordinary General Meeting of the Shareholders was held on 04.10.2021 to consider winding up and voluntary liquidation of the Company as per the provisions contained under Section 59 of the Insolvency and Bankruptcy Code, 2016.

In the Extraordinary General Meeting of the Shareholders of the Company which took place on 04.10.2021 it was resolved by special resolution to appoint the Applicant herein to act as a liquidator for conducting voluntary liquidation process in relation to the Company under Section 59 of IBC, 2016.

It was submitted that the Applicant herein has conducted the Voluntary Liquidation process in respect of the Company in Liquidation in accordance with the IBBI (Voluntary Liquidation Process) Regulations, 2017. The details of the relevant compliances as mandated under Section 59 of the IBC, 2016 read with the IBBI (Voluntary Liquidation Process) Regulations, 2017 are listed hereunder:-

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Notice of this petition was sent to the Registrar of Companies and Income Tax Department. The Income Tax Department has filed its report/representation dated 17.07.2023, in respect of the Company, stating that “there was no demand is outstanding in the case of Sahiyar Fincap Private Limited, PAN: AAXCS 6590 B. It is further stated that no other proceedings are pending in the said case.” No reply/report from Registrar of Companies received.

It is stated in the petition that the meeting of contributories was held on 19.10.2022 for consideration of time line, as the liquidation process was not completed within a time as prescribed under the law due to delay in receipt of income tax refund of Rs.2,23,000/- from the income tax department for distribution of the same among the contributories.

It was submitted by the Applicant that no claim has been received during the process of liquidation. Further, it was submitted that after making various payments including liquidation costs as per the provisions of Section 53(1) of IBC, 2016, the Liquidator has distributed the funds among the shareholders as detailed below:

Thus, on examining the submissions made by the Applicant and after perusing, the documents annexed to the Petition it appears that the affairs of the Company have been completely wound up and the assets of the Applicant Company have been completely liquidated and as such the Applicant Company deserves to be dissolved. Accordingly, in exercise of the powers conferred under Section 59(8) of IBC, 2016. We hereby order the dissolution of Sahiyar Fincap Private Limitedand the Applicant Company shall stand dissolved from the date of this order.

The Registry and the Liquidator are directed to serve a copy of this order upon the Registrar of Companies, Gujarat, Income Tax Department and also to IBBI, within 14 days from the date of this Order for information and necessary action.

The Liquidator shall preserve a physical or an electronic copy of the reports, registers and books of account referred to in Regulations 8 and 10 of IBBI Regulations for at least eight years after the dissolution of the Corporate Person, either with himself or with an information utility.

Accordingly, the Company Petition stands allowed and disposed of.