Authority: National Company Law Tribunal, Court-V, Mumbai Bench
Order Date: 09.06.2026
Case Overview
This matter concerns an Interlocutory Application (IA/2335/2026) filed in the ongoing corporate insolvency resolution process (C.P. (IB)/2392(MB)2019) initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petitioner is Stressed Assets Stabilisation Fund, and the corporate debtor is Adya Oils & Chemicals Ltd. The application was filed by the Liquidator seeking an extension of the liquidation period by 3 months beyond 07.06.2026.
The tribunal noted that a previous extension was granted for 3 months from 07.03.2026 via order IA 1191 of 2026. In that order, the bench had made critical observations, stating that the liquidator has no duty to improve asset quality and should instead dispose of assets on an 'as is where is' basis or distribute them to creditors as per regulations. It had explicitly noted that six years was "far too long" for liquidation proceedings to be completed.
Despite these clear directions and observations, the liquidation proceedings remained incomplete. A significant point of contention for the bench was the liquidator's failure to be present in person for this hearing, as was potentially required to explain the delays.
Final Outcome
The tribunal declined to grant the requested 3-month extension. It deemed it appropriate to list the matter for further consideration on 07.07.2026. The bench issued a directive that the liquidator must be present in person on the next hearing date to explain the reasons for not completing the liquidation process and for not taking action in accordance with the applicable regulations and provisions of law.
Topics: Insolvency Proceeding, Liquidation Delay, NCLT Order