Authority: National Company Law Tribunal, Division Bench, Court - 1, Ahmedabad
Order Date: 08/06/2026
Case Overview
This matter concerns an application (IA/818(AHM)2026) filed by the Liquidator of Zep Infratech Ltd under Regulation 44(2) of the IBBI (Liquidation Process) Regulations, 2016 read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016 and Rule 11 of the NCLT Rules, 2016. The application sought exclusion of 290 days from the liquidation period of the Corporate Debtor, Zep Infratech Ltd. The liquidation process was initiated by an order dated 23.06.2025. This order was challenged before the National Company Law Appellate Tribunal (NCLAT) in Company Appeal (AT) (Ins.) Nos. 946/2025, 1043/2025 and 1061/2025. Through an order dated 04.07.2025, the NCLAT directed the Liquidator not to proceed further with the liquidation process. These appeals were ultimately dismissed on 21.04.2026. The Liquidator argued that the entire period from 04.07.2025 to 21.04.2026 (290 days) was lost due to the stay order and was beyond their control, making it impossible to carry out any liquidation activities.
Final Outcome
The NCLT bench, comprising Member (Technical) Sanjeev Sharma and Member (Judicial) Shammi Khan, allowed the application. The tribunal agreed with the Liquidator's submissions, observing that the liquidation process remained completely stalled for the specified 290-day period due to the NCLAT's order. Consequently, this period was excluded from the calculation of the liquidation timeline as per Regulation 44 of the IBBI (Liquidation Process) Regulations, 2016. The revised end date for the liquidation process was declared as 07/04/2027.
Topics: Insolvency, Liquidation Process, NCLT Order