Case Details
Case Name: M/S PRASAD SEEDS PVT. LTD. vs Mr. Madasa Kumar & Committee of Creditors
Court/Authority: National Company Law Tribunal Hyderabad Bench – 1
Case Number: IA (IBC) No.771/2026 in CP(IB) NO. 645/7/HDB/2018
Date of Order: 22.05.2026
Period of Proceeding: CIRP ongoing for 714 days beyond statutory timeline
Parties Involved
Petitioner/Applicant: M/s Prasad Seeds Pvt. Ltd. through Authorised Representative Hemanth Kumar Karumanchi
Respondents: 1. Mr. Madasa Kumar (Resolution Professional of Vibha Agro Tech Ltd), 2. Committee of Creditors through Mr. Madasa Kumar
Corporate Debtor: M/s Vibha Agro Tech Limited
Financial Creditor: SBI (SAM Branch)
Legal Representatives: Mr. Y. Suryanarayan, Advocate with Ms. Devangi Kariya, PCS (for Applicant); Mr. GP Yash Vardhan, Advocate (for RP); Mr. Madasa Kumar, RP (appearing in person)
Tribunal Members: Sri Rajeev Bhardwaj (Hon'ble Member Judicial), Sri Sanjay Puri (Hon'ble Member Technical)
Issues / Allegations / Violations
Application filed under Section 60(5) of Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016 seeking restoration of Corporate Insolvency Resolution Process (CIRP) for Vibha Agro Tech Ltd. Applicant claimed corporate debtor derives substantial value from intangible assets including technical processes, intellectual capital, and market goodwill. Applicant contended being in same line of business could effectively revive corporate debtor as going concern. Applicant prepared demand draft for ₹29 crores dated 06.04.2026 in favour of SBI to demonstrate financial capability.
Findings & Observations
Tribunal found that CIRP was admitted on 05.06.2023 and restarted on 21.02.2025. Fresh Form-G published on 29.04.2025 invited Expression of Interests where applicant was included in list of prospective resolution applicants but failed to submit resolution plan. Applicant also did not respond to subsequent Form-G published on 03.09.2025. CoC in 16th meeting did not accept revised resolution plan from M/s Verity Knowledge Solutions Private Limited and resolved to initiate liquidation. Amendment to Section 33 of IBC permitting restoration of CIRP prior to liquidation order requires application by CoC with not less than 66% voting share, which was not made in this case. CoC in 19th meeting held on 14.05.2026 with 97.31% voting share resolved not to restore CIRP and proceed with liquidation.
Penalties / Settlements / Directions
No monetary penalties imposed. Application dismissed in its entirety. Tribunal refused to direct Committee of Creditors to consider restoration of CIRP.
Corrective Actions & Future Obligations
No corrective actions ordered. Liquidation proceedings to proceed as resolved by Committee of Creditors.
Final Ruling & Enforcement
Application dismissed and disposed of. Tribunal upheld commercial wisdom of Committee of Creditors and their decision to proceed with liquidation rather than continue CIRP. No restoration of Corporate Insolvency Resolution Process granted.