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

Order Date: 09.06.2026

Case Overview

The National Company Law Tribunal (NCLT) New Delhi Bench heard an application filed by Mr. Mohan Lal Jain, the Liquidator of Neemsar Vyapaar Private Limited, under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 45 of IBBI (Liquidation Process) Regulations, 2016. The application sought dissolution of the corporate debtor, extinguishment of all liabilities, discharge of the liquidator, and directions to the Registrar of Companies.

The corporate insolvency resolution process (CIRP) was initiated against Neemsar Vyapaar Pvt Ltd on 23.12.2022 based on a Section 9 application filed by operational creditor Montage Enterprises Private Limited. Mr. Mohan Lal Jain was appointed as Interim Resolution Professional and later as Resolution Professional. On 30.05.2023, the tribunal ordered liquidation of the corporate debtor under Section 33(2) of IBC and appointed Mr. Jain as Liquidator.

During liquidation, the liquidator made public announcements calling for claims, with the last date for submission being 29.06.2023. Only one creditor, Montage Enterprises Private Limited, submitted claims which were admitted and revised during the process. The final admitted claims totaled ₹14.71 crore, comprising ₹8.76 crore as financial debt (inter-corporate loan) and ₹5.94 crore as operational debt, with Montage Enterprises holding 100% voting rights.

The liquidation process involved constitution of a Stakeholders' Consultation Committee (SCC) which held six meetings between 07.06.2023 and 02.05.2024. Assets were sold through e-auction with trade receivables and computers sold to High Growth Credit Services Limited for ₹20.02 lakh against a reserve price of ₹20.02 lakh, realizing only partial value against the average liquidation value of ₹47.24 lakh.

The tribunal raised concerns regarding a GST Show Cause Notice (F.No. DGGI/INV/GST/1757/2021/GRU/3822(S/L) dated 30.07.2024) demanding ₹100.20 crore, reconciliation of claims variance, asset memorandum details, investigation of preferential/undervalued/fraudulent/extortionate (PUFE) transactions, and valuation disclosure. The liquidator responded that GST registration was surrendered on 02.05.2022 prior to CIRP initiation, and cited NCLAT precedent that tax authorities cannot initiate recovery during moratorium periods.

A transaction record analysis (TRA) report dated 26.12.2023 covering FY2020-21 to 23.12.2022 found no transactions falling under Sections 43, 45, or 49 of IBC. All transactions were in ordinary course of business with no preferential, undervalued, fraudulent, or extortionate transactions identified.

Final Outcome

The NCLT allowed the dissolution application and ordered:

1. Dissolution of Neemsar Vyapaar Private Limited under Section 54 of IBC

2. Extinguishment of all liabilities of the corporate debtor

3. Discharge of Mr. Mohan Lal Jain from duties as Liquidator

4. Registrar of Companies, NCT of Delhi & Haryana to take necessary action

5. The dissolution does not discharge directors, shareholders, or concerned persons from any liability under applicable laws

6. Statutory authorities (Income Tax, GST, ESIC, PF, ROC) remain at liberty to initiate or continue proceedings against concerned persons

7. Liquidator to serve the order to ROC within 14 days and stand discharged after procedural compliance

  • Topics: Corporate Insolvency, Liquidation Process, GST Dispute