NCLAT Upholds Vrundavan Ceramic Liquidation Order

NCLAT dismisses appeals by Lorenzo Vitrified Tiles and Resolution Professional against NCLT Ahmedabad's order rejecting a resolution plan and initiating liquidation for Vrundavan Ceramic.
The appellate tribunal found an 8-month delay in refiling the resolution plan after remand, violating the NCLT's directive to submit by November 30, 2023.
The CoC, led by State Bank of India, initially approved Lorenzo's plan but later supported liquidation due to the extensive delay and value deterioration of assets.
The tribunal upheld adverse observations against the Resolution Professional for a grossly negligent and lackadaisical approach in conducting the CIRP.