Authority: National Company Law Tribunal Chandigarh Bench (Court-II)

Order Date: 07.07.2026

Case Overview

The National Company Law Tribunal (NCLT) Chandigarh Bench heard an application (IA(IBC)(Liq.)/9(CH)2025) filed by Resolution Professional Mr. Naveen Kumar Jain under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Mcraygor Mechanicals Private Limited. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 08.02.2023 following an application by Operational Creditor Overseas Infrastructure Alliance (India) Private Limited. The Committee of Creditors (CoC) consisted of two financial creditors: Small Industries Development Bank of India (SIDBI) with a claim of ₹4,82,81,930 (84.20% voting share) and Bank of Baroda with a claim of ₹90,61,570 (15.80% voting share), totaling admitted claims of ₹5,73,43,500.

During the CIRP, one Expression of Interest was received from erstwhile promoter Mr. Vijay Kumar, but his resolution plan was rejected after he was found ineligible under Section 29A of the Code. A settlement proposal under Section 12A was also submitted but failed to gain approval from the CoC. Registered valuers assessed both the fair value and liquidation value of the Corporate Debtor's assets as 'Nil' in reports dated 21.10.2023. A forensic audit by Sahaj & Associates identified no transactions under Sections 43, 45 or 50 of the Code, but certain transactions were reported under Section 66, leading to the filing of IA No. 579(CH)/2024 which remains pending.

In its 21st meeting held on 21.07.2025, the CoC approved a resolution for liquidation with 84.20% voting share (SIDBI voted in favor, Bank of Baroda abstained). The CoC also approved the appointment of the existing Resolution Professional as Liquidator, estimated liquidation costs of ₹15.25 lakh plus GST, and directed exploration of compromise under Section 230 of the Companies Act, 2013.

Final Outcome

The NCLT allowed the application and ordered the liquidation of Mcraygor Mechanicals Private Limited. Mr. Naveen Kumar Jain was appointed as the Liquidator. The moratorium under Section 14 ceased effect from the order date. All powers of the board of directors vest with the Liquidator, who must issue a public announcement and serve copies of the order to relevant government departments and employee associations. The CoC's resolution to pursue avoidance transactions under Section 66 through a joint committee was noted, with any recoveries to be distributed according to Section 53 of the Code.

Topics: Corporate Insolvency, Liquidation Order, Creditor Committee