Authority: National Company Law Tribunal, Jaipur Bench (Ms. Reeta Kohli, Judicial Member and Ms. Kavita Bhatnagar, Technical Member)

Order Date: 17.07.2026

Case Overview

The National Company Law Tribunal (NCLT) Jaipur Bench heard an Interlocutory Application (IA No. 505/JPR/2025) filed by Resolution Professional Mr. Rajneesh Sharma seeking to place on record the 3rd status report for the Corporate Insolvency Resolution Process (CIRP) of Dropbase Software Pvt. Ltd. The CIRP was initiated on 20.10.2022 pursuant to a Section 9 application filed by operational creditor Karvy Forde Search Pvt. Ltd. Mr. Sharma was appointed Interim Resolution Professional and confirmed as Resolution Professional by the Committee of Creditors (CoC) on 29.11.2022.

The CoC comprises four creditors with government entities holding a majority voting share of 81.55%: Karvy Forde Search Pvt. Ltd. (18.45%, ₹3.44 crore claim), Assistant Commissioner CGST Mumbai East (13.43%, ₹2.50 crore claim), Income Tax Officer Ward-1(1) Jaipur (3.93%, ₹73.47 lakh claim), and Assistant Commissioner CGST Jaipur (64.19%, ₹11.99 crore claim).

The CIRP encountered complete deadlock as the CoC rejected all critical resolutions including approval of CIRP costs (rejected by 77.62% voting share), appointment of professional advisors, revival of the company, and early dissolution. The Corporate Debtor was found to be asset-less with only outdated software having no realizable value and no bank balances.

Suspended directors Mr. Himanshu Meena and Mr. Akhil Sharma failed to cooperate by not providing books of accounts or financial records. Total unpaid CIRP costs amounted to ₹30,50,569 as of 30.08.2025, with the RP funding expenses from his own pocket.

The Resolution Professional failed to seek mandatory timeline extensions under Section 12 of the IBC. The statutory 180-day period expired on 18.04.2023, and the maximum 330-day period (including possible extensions) lapsed on 15.09.2023. Despite this, the RP conducted CoC meetings until February 2026 without proper authorization.

The NCLT found the RP's claim of 184 days exclusion due to NCLAT stay (02.01.2023 to 04.07.2023) misleading, as the NCLAT order only restricted constitution of CoC (if not already constituted) but did not stay the CIRP itself. The tribunal noted serious lapses in the RP's professional conduct regarding timeline compliance.

Final Outcome

The NCLT ordered liquidation of Dropbase Software Pvt. Ltd. under Section 33(1)(a) of the IBC, 2016. Ms. Anubha Singh (Registration No. IBBI/IPA-001/IP-P-02784/2022-2023/14260) was appointed as Liquidator. The moratorium under Section 14 ceased effect, and a fresh moratorium under Section 33(5) was declared. The Liquidator must file a preliminary report within 75 days, take charge of all assets/records, and complete the liquidation process per IBBI Regulations. All powers of the board of directors vest with the Liquidator.

Topics: Corporate Insolvency, Liquidation Order, Regulatory Compliance