Case Details

Case Name: Oriental Bank of Commerce vs. M/s KMG A to Z Systems Private Limited

Court/Authority: National Company Law Tribunal, Court-VI, New Delhi Bench

Case Numbers: IA No. 40/ND/2024 & IA No. 3166/ND/2025 in CP IB No. 1644/PB/2018

Order Date: 21.05.2026

Period of Process: Corporate Insolvency Resolution Process (CIRP) was initiated on 06.08.2019. Liquidation process was initiated on 13.05.2021 and concluded with this dissolution order.

Parties Involved

Financial Creditor/Petitioner: Oriental Bank of Commerce

Corporate Debtor/Respondent: M/s KMG A to Z Systems Private Limited

Liquidator/Applicant: Sandeep Kumar Bhatt (IBBI Registration: IBBI/IPA-002/IP-N01064-C01/2017-18/10298)

Suspended Director: Represented by Sr. Adv. Dr. Pankaj Garg, Ms. Preeti Giri, Mr. Himanshul Tyagi

Liquidator's Representative: Mr. Kamal Deep Tyagi, CMA

Adjudicating Authority: Hon'ble Ms. Jyotsna Sharma (Member Judicial) and Hon'ble Ms. Anu Jagmohan Singh (Member Technical)

Other Stakeholders: Punjab National Bank, Canara Bank, Stakeholders' Consultation Committee (SCC)

Issues / Allegations / Violations

The case originated from a petition filed by Oriental Bank of Commerce under Section 7 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to default on financial obligations. The CIRP was admitted on 06.08.2019. Since no Resolution Plan was approved, the Committee of Creditors (CoC) decided to proceed with liquidation.

Findings & Observations

The Tribunal noted that all assets of the Corporate Debtor had been completely liquidated. The liquidation value was determined at ₹8.59 Crores, but the total realization from the sale of assets was ₹17.38 Crores, significantly higher than the liquidation value. The distribution of proceeds was made in accordance with Section 53 of the IBC, 2016. Two proposals for compromise/arrangement submitted by the Suspended Director were put to vote before the Stakeholders' Consultation Committee but were rejected with 100% voting against them.

Penalties / Settlements / Directions

No monetary penalties were imposed in this proceeding. The financial consequences include:

  • Liquidation costs of ₹1,38,28,156 were fully recovered.
  • CIRP costs of ₹83,23,587 were paid in full.
  • Distribution to secured financial creditors:
  • Punjab National Bank: Received ₹12,63,19,505 against admitted claims of ₹2,58,71,85,414 (4.88% recovery)
  • Canara Bank: Received ₹2,55,11,262 against admitted claims of ₹52,01,37,972 (4.88% recovery)

Corrective Actions & Future Obligations

The Liquidator completed all procedural requirements:

  • Made public announcement in newspapers on 04.06.2021
  • Constituted Stakeholders' Consultation Committee on 21.07.2021
  • Filed Preliminary report, List of stakeholders and Asset Memorandum
  • Conducted multiple SCC meetings to discuss asset disposal
  • Conducted e-auction of assets on 14.12.2021
  • Assigned two arbitration proceedings to M/s SSR Townships Private Limited for ₹0.30 Crores
  • Maintained liquidation bank account with Punjab National Bank (A/c No. 09311131003800) which was closed on 27.09.2024
  • Filed Final Report dated 16.09.2024 and Compliance Certificate in Form-H

Final Ruling & Enforcement

The Tribunal allowed IA No. 40/2024 and ordered:

  • Dissolution of Corporate Debtor M/s KMG A TO Z SYSTEMS PRIVATE LIMITED with immediate effect
  • The Liquidator is directed to serve a copy of the order upon the Registrar of Companies, NCT of Delhi & Haryana and the Insolvency and Bankruptcy Board of India within fourteen days
  • The Liquidator stands discharged from his responsibilities subject to completion of procedural compliances
  • IA No. 3166/2025 was allowed, extending the liquidation period from 30.08.2024 to 29.10.2024

The Registrar of Companies is instructed to take necessary action upon receipt of the order copy. The file is consigned to the record.