Authority: National Company Law Tribunal, New Delhi Bench Court-V

Order Date: 12 June 2026

Case Overview

The application was filed by Liquidator K Subhra Narayan Mohapatra under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, seeking dissolution of General Power Company Pvt. Ltd. (Corporate Debtor). The Corporate Insolvency Resolution Process (CIRP) commenced on 2 July 2019 against the Corporate Debtor on application by Punjab National Bank (Financial Creditor). Since no resolution plan was received within the 180-day CIRP period, the Committee of Creditors (with 100% voting share) resolved to liquidate the company on 29 December 2019. The NCLT ordered liquidation on 22 July 2020 and appointed the current Liquidator.

The liquidation process involved comprehensive asset realization and distribution. The factory assets at Plot No. 14A, Sector-9, Pant Nagar, Rudrapur, Udham Singh Nagar, Uttarakhand were sold via e-auction to M/s. Perfetti Van Melle India Private Limited for ₹9,19,68,818 on 2 July 2022. Not-Readily Realisable Assets were assigned to Punjab National Bank after no interest was received from other parties. The liquidation period received multiple extensions due to COVID-19 pandemic delays, ultimately expiring on 30 September 2024.

Distribution was made strictly according to Section 53 waterfall mechanism: Liquidation costs of ₹1,61,59,000 were paid in full (100%), and the secured Financial Creditor (Punjab National Bank) received distribution against its admitted claim of ₹18,25,00,000. No proceeds remained available for distribution to Operational Creditors (who had admitted claims of ₹3,74,000), employees, government dues, or shareholders.

Final Outcome

The NCLT allowed the application and ordered the immediate dissolution of General Power Company Pvt. Ltd. The Liquidator was directed to serve the order upon the Registrar of Companies, NCT of Delhi & Haryana and the Insolvency and Bankruptcy Board of India within fourteen days, and stands discharged from responsibilities subject to completion of procedural compliances.

Topics: Insolvency Proceedings, Corporate Dissolution, Asset Liquidation