Authority: National Company Law Tribunal, Division Bench, Court – II Chennai
Order Date: 13 July 2026
Case Overview
The National Company Law Tribunal (NCLT) Chennai Bench heard an application filed under Section 35(n) and 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 38 of the IBBI Regulations, 2016 and Rule 11 of the NCLT Rules, 2016. The matter concerns the liquidation proceedings of Seven Eleven Business Services (P) Ltd., with Shri S. Rajagopal serving as the Liquidator. The respondents included Indian Overseas Bank (Asset Recovery Management Branch) and three others.
The Tribunal noted that despite specific directions to deal with unsold assets, the Financial Creditor had failed to take any decision during the creditors' meeting held on 18 May 2026. The properties in question were found to be not readily identifiable, with one property specifically subject to the jurisdiction of the Lodha Committee, creating complications for the liquidation process.
Final Outcome
The Tribunal determined that no useful purpose would be served by prolonging the liquidation proceedings given the unavailability of identifiable assets. It directed all Financial Creditors (including Indian Overseas Bank and unsecured financial creditor Mr. Muruga Bharathy), equity holder Ms. K. Nirmala, and operational creditor M/s. Team & Sons to appear in person at the next hearing. The Liquidator was directed to serve notices to these parties. The case was adjourned to 10 August 2026 for further proceedings.
Topics: Insolvency Proceedings, Liquidation Process, Creditor Directions