The NCLT has ordered liquidation of a company after no viable resolution plan emerged despite an extended EOI process. The Committee of Creditors (CoC) voted 80.86% in favor of liquidation, marking a significant directive in insolvency proceedings.
NCLT Orders Liquidation Due to Lack of Viable Resolution Plan
The National Company Law Tribunal (NCLT) has mandated the liquidation of a company as no viable resolution plan was presented, despite efforts to solicit Expressions of Interest (EOI). The Tribunal's decision follows a decisive vote by the Committee of Creditors (CoC), which favored liquidation with an 80.86% majority.
The NCLT observed that the prolonged EOI process did not yield any acceptable resolution plans that would allow for corporate rehabilitation. This ruling emphasizes the importance of a comprehensive and timely response from potential resolution applicants in insolvency cases.
The implications of the NCLT's decision are profound for practitioners involved in insolvency and bankruptcy. Legal and financial advisers must ensure that their clients prepare robust and viable plans within the stipulated time frames to prevent liquidation proceedings.
Citations
- NCLT Order (2026)
