The NCLT has ordered liquidation after finding that no Expressions of Interest (EOI) or resolution plans were received despite multiple Form G publications, backed by an 83.10% vote from the Committee of Creditors (CoC).
NCLT Orders Liquidation After Failed CIRP
The National Company Law Tribunal (NCLT) has ordered the liquidation of a corporate entity after the Corporate Insolvency Resolution Process (CIRP) failed to yield any Expressions of Interest (EOI) or resolution plans. This decision follows repeated publications of Form G, aimed at soliciting resolution proposals, and an 83.10% voting approval from the Committee of Creditors (CoC) in favor of liquidation.
The tribunal noted that despite adequate attempts to engage potential resolution applicants, the absence of responses warranted a conclusion that the CIRP had not resulted in viable options for restructuring. It highlights challenges within the insolvency framework where despite compliance with procedural mandates, tangible outcomes may not manifest.
This ruling is particularly important for insolvency practitioners, as it illustrates the necessity for proactive measures and effective outreach within the CIRP process. Legal professionals should note the tribunal's expectation for meaningful engagement during resolutions, signaling that passive approaches may lead to unfavorable outcomes like liquidation.
Citations
- Order dated 18 August 2026
