NCLT Orders Kosas Industries Liquidation After CIRP Failure

NCLT Orders Liquidation of Kosas Industries After Failed CIRP

Authority: National Company Law Tribunal (NCLT), Mumbai Bench

Order Date: 10 June 2026

Case Overview

This application was filed by Mr. Jeetendra Daryani, the Resolution Professional (RP) of Kosas Industries Private Limited (Corporate Debtor), under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). The proceeding originated from a petition (CP (IB) No. 1446 of 2020) filed by the State Bank of India (Financial Creditor) under Section 7 of the IBC. The petition was initially rejected by the NCLT on 09.02.2023 on limitation grounds, but the NCLAT allowed an appeal (Company Appeal (AT) (Ins) No. 472 of 2023) on 14.09.2023 and remitted the matter back. The petition was restored and renumbered as RCP No. 05 of 2023 on 06.11.2023.

The NCLT admitted the petition and initiated the Corporate Insolvency Resolution Process (CIRP) on 29.02.2024, appointing Mr. Daryani as the Interim RP. A public announcement was made on 05.03.2024. During the CIRP, only one financial creditor (SBI) initially submitted a claim, forming the Committee of Creditors (CoC). A subsequent claim from SIDBI was received on 22.05.2024, leading to a revision of the CoC's constitution. In response to Form G, 34 Expressions of Interest (EoIs) were received. A provisional list of Prospective Resolution Applicants (PRAs) was circulated on 15.05.2024, and two Resolution Plans were ultimately received. These plans were presented to the CoC but were annulled, leading to a reissue of Form G. A second Resolution Plan was received and discussed. Ultimately, at its 13th meeting held on 26.12.2024, the CoC rejected the Resolution Plan and passed a resolution for the liquidation of the Corporate Debtor with an 87.31% vote share. The CIRP period, including extensions granted by the Tribunal (IA.No.5480/2024 and IA.No.256/2025), had expired.

Final Outcome

The NCLT allowed the application and ordered the liquidation of Kosas Industries Private Limited under Chapter III of the IBC. Mr. Prawincharan Prafulcharan Dwary (IP Registration No. IBBI/IPA-002/IP-N00331/2017-2018/10937) was appointed as the Liquidator. The moratorium under Section 14 of the IBC ceased from the date of the order. All powers of the Board of Directors and key managerial personnel vested in the Liquidator, who is required to initiate the liquidation process as per the IBBI (Liquidation Process) Regulations, 2016. The erstwhile RP was directed to hand over all documents to the Liquidator within 10 days. The CoC was also directed to ratify and clear any outstanding fees of the erstwhile RP.

Topics: Corporate Insolvency, Liquidation Order, NCLT Proceeding