Authority: National Company Law Tribunal, Mumbai Bench (Court IV)

Order Date: 10 July 2026

Case Overview

This application was filed by Shri. Rajesh S Shah, the Chairperson of the Monitoring Committee and the Resolution Professional, under Section 33(3) of the Insolvency and Bankruptcy Code, 2016 (IBC). The application sought the liquidation of AG Conveying Systems Private Limited (the Corporate Debtor) due to the contravention of an approved resolution plan.

The Corporate Insolvency Resolution Process (CIRP) for the debtor commenced on 03 December 2019. A resolution plan submitted by Shri Shripad Gopal Apte was initially approved by the Committee of Creditors (CoC), which consisted solely of the Bank of Maharashtra holding a 100% voting share. The plan was later modified to accommodate a claim from the Employees' State Insurance Corporation (ESIC) and was ultimately approved by the NCLT on 16 May 2024.

A Monitoring Committee was constituted to implement the plan. The first payment under the plan was due on or before 26 June 2024. The Successful Resolution Applicant (SRA), Shripad Gopal Apte, failed to make this payment. He sought extensions and proposed revised timelines but ultimately failed to meet any of his obligations. The Monitoring Committee recorded this failure in its meetings, and the sole financial creditor, Bank of Maharashtra, communicated its decision to proceed with liquidation on 05 April 2025, prompting this application. The SRA, though represented by counsel, did not file a reply to the application.

The NCLT found that the approved resolution plan had been contravened and that the requirements of Section 33(3) of the IBC were satisfied, warranting an order for liquidation.

Final Outcome

The NCLT allowed the application and ordered the liquidation of AG Conveying Systems Private Limited. Mr. Siddhant Agarwal (Registration No. IBBI/IPA-001/IP-P-02832/2023-2024/14370) was appointed as the Liquidator. The order mandates that all powers of the board of directors vest in the liquidator, the moratorium under Section 14 ceases, and the liquidator must initiate the process as per the Code and relevant regulations. The erstwhile Resolution Professional is to hand over all documents to the liquidator within 10 days.

Topics: Insolvency, Liquidation, NCLT